Fundraising for nonprofits decreased by 5% in 2022

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.

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.