Fundraising for nonprofits decreased by 5% in 2022

The disastrous international economic situation negatively affected many non-profits.

 Israeli money bills. (photo credit: PIXABAY)
Israeli money bills.
(photo credit: PIXABAY)

Some 37,000 organizations are registered in Israel, yet only about 10,000 have active programs to help, for example, people, animals, or the environment, according to a new report by Atlas, a philanthropic database for non-profit organizations.

Of the NIS 23 billion raised, 13 billion came from Israel; 3 billion from grants from Israeli foundations; 10 billion in donations from individuals and businesses; and 10 billion from abroad.

A quarter of donations to Israeli nonprofits went towards education, 25% went to religious institutions, 20% to welfare organizations, and 30% is marked for health, sports, culture, the environment and loan soldiers.

Of the donations from abroad, 40% were directed to welfare organizations, 20% to education and research, 20% to religious organizations and 20% for other fields. During the extremely impactful coronavirus crisis, 30% of nonprofits were severely damaged, some of which stopped operating altogether. During the crisis, contributions from abroad dropped by 15%. 

How did COVID-19 affect funding?

On the other hand, the coronavirus benefited associations in the health sector, which raised much more money than in previous years.

Illustrative photo of Israeli money (credit: MARC ISRAEL SELLEM)Illustrative photo of Israeli money (credit: MARC ISRAEL SELLEM)

Atlas CEO Shlomi Turgeman estimated that 2023 will be a difficult year for raising donations for nonprofits even more than during COVID-19. He told Maariv that the difficult situation in the business sector in the last year, the waves of layoffs in hi-tech and related companies and the declines in the stock market will make it difficult for fundraising.

There are 10 million nonprofits operating worldwide, of which 2 million are in the US; 260,000 philanthropic funds finance these organizations which manage 1.6 trillion dollars in donations and grants.