Local authorities in Israel are increasingly turning to philanthropy as a strategic growth tool, according to a new market study by Zoooz. The report highlights a growing trend in which municipalities actively raise funds to supplement state budgets and accelerate development projects.
The Jerusalem Foundation ranked first, raising 136 million shekels over the past year. It was followed by the Tel Aviv Foundation with 57.8 million shekels, and the Gush Etzion Foundation with 20 million shekels.
Other leading fundraisers included the Sderot Development Foundation with 14 million shekels, the Binyamin Development Foundation with 13.7 million, and the Beersheba Development Foundation with 13 million.
Rounding out the top ten were the Sdot Negev Regional Council (8.5 million), Ashkelon Foundation (8.2 million), Rishon LeZion Foundation (3.3 million), and the Kiryat Gat Development Foundation (1 million).
Shift from state reliance to external funding
Shlomi Turgeman, CEO of Zoooz, said the findings reflect a broader shift in how local governments approach financing.
“In recent years, there has been a conceptual change. In the past, municipalities relied almost entirely on government budgets and local taxes,” he said. “Today, budget gaps, ongoing security challenges and growing social and infrastructure needs are pushing local authorities to seek external resources.”
The study found that fundraising success is not determined by a municipality's size but by the quality of its leadership and management.
According to Zoooz, smaller and mid-sized authorities have often outperformed larger cities in philanthropic fundraising by adopting proactive strategies and building strong connections within the philanthropic sector.
The report emphasizes that successful fundraising requires clear vision, long-term relationship building and professional infrastructure.
Municipal leaders who invest time and resources into developing partnerships — rather than one-time donations — are more likely to build sustainable funding streams, the study said.
“Leaders who understand the process are not just raising money — they are building a growth engine for their municipality,” Turgeman said.
Zoooz forecasts that municipalities will become increasingly central players in the philanthropic ecosystem, potentially operating dedicated teams and advanced tools, including artificial intelligence, to manage fundraising efforts.
The report concludes that effective use of philanthropy could enable local authorities not only to close budget gaps but to drive broader social and economic transformation.
