Funding Allocations in Israel: An Empirical Assessment of the New Philanthropy Approach

In the present study, we examine the determinants associated with variations in the level of funding allocations among 112 grant-making philanthropic institutions in Israel. Drawing upon the hypotheses developed in Creative Philanthropy and the New Philanthropy approaches, we test the extent that social, economic, and organizational performance affects the level of funding allocations. Evidence indicates that (a) the level of resources raises the level of funding allocations to economic performance but not social performance; (b) a higher number of institutional stakeholders from the public sector, local authorities, and private organizations, eligible for support, raises the level of funding allocations to social performance; and (c) a higher number of volunteers in the workforce increases economic performance. The results assess assumptions promoted in the New Philanthropy approach, suggesting that philanthropic institutions in Israel develop a clear focus on professional management and a wise rather than “romantic” approach to philanthropy and altruism.