Israel's Children Deserve Better

A recent Times of Israel article revealed that many public schools in Israel are so underfunded that teachers must buy classroom learning tools with their own funds. In a school in Ofakim, teachers make do with donated supplies or pay for them out of their own pockets.  School principal Yael Segev explains that “the municipality can’t take the expenses,” and that she donates about 10 % of her salary back to the school to help fund operations.

According to recent OECD tests, even Israel’s top students are outperformed on international assessments by their peers from nearly every other country. The only categories in which Israel leads the rankings?  Israel has both the largest average class size, with an average of 29 students vs. the OECD average of 20, and more worrisome, the largest gap in educational achievement between rich and poor.

In wealthier communities, municipalities and parents make up for inadequacies by allocating or donating funds to schools. However, limited or inefficient government spending results in the denial of education to those living in Israel’s socio-economic and geographic periphery. The municipalities don’t have the budgets and most families in these communities can’t afford to supplement their children’s education. The 33% of Israel's children living in poverty are not getting the education they need to change their lives or their communities.

Darca was established in 2010 by the Rashi Foundation and KIAH to address this very crisis. With over 14,000 students in 23 high schools, and a student -teacher-student ratio of 10 to 1, Darca is Israel’s leading network of high schools. Working in Israel’s underserved communities, Darca is providing the world’s most innovative country with the most innovative schools.  Since the network was established, more than 80% of Darca students have passed Israel’s university matriculation exam compared to the national average of 49.8%. As an independent operating organization with a strong partner in the United States, Darca will invest more than $10 million this year on top of Ministry of Education funding in 23 schools and 2 learning centers to provide Israeli children with the education they deserve. Now more than ever, Israeli families need the support of Darca and our community of donors to ensure their children have unlimited opportunity and are prepared for success in our global economy.

Back to School for the Jewish Philanthropic Community

The recent Giving USA Report, researched in partnership with the Indiana University Lilly Family School of Philanthropy, revealed that charitable giving is up. Contributions have grown by 22% since 2009, almost back to pre-recession peaks.

In the Jewish/Israel segment of the philanthropic world, overall news is also good. The combination of Jewish wealth and, in the United States at least, relatively little anti-Semitism, enables engaged citizens to use the power of philanthropy to address many issues our community and greater society has faced for decades. The opportunity for philanthropists of all sizes to make significant change is more likely than ever before.

And yet, while charitable giving as an industry is growing, many individual organizations have not rebounded from the 2008 recession; they still struggle to raise the funds to meet the ever growing needs of the populations they serve. When colleagues from around the industry gather, we lament not the lack of creative ways to address societal problems, but the funding to implement them or the shortage of qualified employees. In our industry’s current state, there are simply not enough resources.

From 2003 to 2013, the number of 501c3 organizations increased by over 20% in the United States. The proliferation of similar organizations in Israel has also been rapid. In 2012, Israel had nearly 43,000 registered amutot [the Israeli 501c3 equivalent]; there are nearly 2,000 new ones added each year. With so many organizations competing for the same funding and the same employees, it is no wonder that we all feel the pinch.

To be sure, competition can breed innovation and creativity. It can help move ideas to market faster and encourage out of the box thinking. In the for-profit world, competition also has the added benefit of providing additional choice and often driving down prices. Unfortunately, in the not-for-profit arena, the increase in organizations addressing similar needs has led to duplication in overhead, and competition for a limited pool of funds and employees. As a result, fewer dollars are getting to the end user—the people who need our ‘products’ the most.

In the for-profit world, when too many companies are serving the same industry, the judgment tends to be swift. Particularly when scale leads to profitability, companies merge, are acquired or shut their doors. In the nonprofit world, even when scale can achieve more results, the same organizations will continue to compete for the same resources year in and year out, without ever growing or increasing impact.

The desire to increase impact, grow reach and leverage resources to change Israel’s education system led two organizations, Youth Renewal Fund and Darca Schools, to form the groundbreaking alliance announced mid-summer.

The two organizations met 18 months ago with the intent of piloting a YRF supplemental education program in two schools within the Darca network, a network of schools similar to a charter school network in the United States. As that cooperation evolved, it was clear to the management and boards of both organizations that there was a greater opportunity.

Unlike a traditional merger or alliance, there was not a profit motive driving this “transaction.” However, from the beginning, it was clear that both YRF and Darca shared one common goal—creating the most innovative schools for underserved children in the world’s most innovative country. Once the conversation started, it was easy for all involved to quickly align to maximize available resources. While each organization was governed by a board of founders, there were no egos around the table.  Personal agendas—often strong influencers in other not-for-profit organizations—were never part of the discussion, only common causes and a shared mission. 

YRF’s business-like approach to philanthropy guided its decision making process. Darca’s desire and ability to change education for all of Israel made it a logical partner.  The philanthropists involved in both organizations focused on the needs of the population each set out to help. This new organization has enormous potential and will deeply impact tens of thousands of children every year. With the school year just beginning, this educational venture has already taught everyone an important lesson.

Originally posted on eJewishPhilanthropy.com on September 11, 2015