Market Update: The Blogs: Three Ways To Strengthen Israel’s Social Economy | Eldan Kaye – Full Analysis

Since October 7, Israeli civil society has mobilized at extraordinary speed. Volunteers filled gaps overnight. Philanthropy surged. Communities held together under sustained pressure.

But emergency response is not a strategy fit for long term rebuilding. As we begin 2026, Israel stands at a fork in the road between immediate recovery and long-term resilience. Many reservists question if they should go back to their business, or will be called up for another round as the fragile ceasefire continues. Communities in the north are still incomplete with many yet to return.

Israel must learn how to take both paths, working towards immediate fixes to the problems of today, alongside long-term solutions to those of tomorrow. 

That tension was at the heart of the recent Ogen Conference, held this past December. Since its founding, Ogen has become Israel’s leading social lender and the Jewish world’s largest interest-free loan association, operating where crisis response meets long-term financial stability.

One of the conference’s most revealing moments was an on-stage conversation I had with Jeff Swartz, Chair of Maoz, former CEO of Timberland and a very strategic partner to Ogen.  Jeff has spent decades building global businesses and now applies that same discipline to social investment in Israel. The exchange cut through familiar recovery language and focused instead on structure, capital, and durability.

Three main elements still sit with me from that discussion in relation to Israel’s social economy at this moment.

1. The Economics of Social Causes are no different to business economics

Much of Israel’s social sector still operates on an annual cycle. Funds are raised, programs are delivered, impact is reported, and the process begins again. There is a reliance on the generosity of few time and time again. . This creates instability and lack of ability to plan long-term. 

In financial terms, the distinction is straightforward. Cash flow keeps operations moving. Balance sheets determine whether institutions survive stress. Organizations without reserves, assets, or recyclable capital are forced into permanent “ask and repeat”mode. Little long term planning and a fragility in which each crisis may deplete their resources completely.

Philanthropists have ramped up since October 7th, yet they may not be able to sustain at the same level. This is a unique moment in Israel’s lifetime in which we can look to change the system. Quit the annual dance and build long-term resilience by using the new partnerships and resources to build different.

2. ‘Building back’ would be missing the opportunity 

Rebuilding has become the default response to national crisis. It implies restoration, a return to something familiar. That assumption does not match reality.

October 7 was not a disruption to be reversed. It was a rupture. Security threats are more diffuse. Social cohesion is more fragile. International pressure is more persistent. Institutions that were already stretched before the war will not perform better simply by restarting old models.

The challenge ahead is not restoration, but forward movement. That requires redesigning systems for ongoing volatility, not episodic crisis. It also requires acknowledging that some structures which once functioned tolerably well are no longer sufficient.

It is time to refound Israel. We simply cannot go back to the reality of October 6th. 

3. Leadership needs infrastructure 

Leadership is not lacking in Israel. On the contrary, you can find it in every pocket – from those brave men and women in uniform, to those who organized logistics and led volunteering efforts, the grassroots leadership rose to the surface.

These leaders need the infrastructure, capital and room to grow. This is where we need alignment from the civil sector, public sector, private sector and philanthropy.  We must adapt our ways to support and nurture the growth of these incredible leaders. They have the ability to create a new reality.

This imbalance is visible among reservists returning to civilian life without financial buffers, among young entrepreneurs unable to access credit, and among community leaders operating without institutional backing.

A society that demands leadership without enabling its growth risks burning through its strongest human capital.

The Financial Architecture of Resilience

If Israel is serious about resilience, it must start thinking in balance sheets as well as values. Long-term recovery depends on whether individuals, businesses, and institutions have access to fair credit and financial tools that allow them to absorb shock and invest forward.

Refounding Israel means moving beyond emergency relief toward systems that strengthen reserves, recycle capital, and treat financial inclusion as national infrastructure. Social finance belongs at the center of this effort, enabling leadership to grow, communities to plan, and institutions to withstand ongoing volatility.

Israel’s next chapter will be shaped by the financial foundations built now, and by whether its social economy is designed to endure, rebuild, and lead.

Eldan joined Ogen in August 2022 to lead the strategic partnerships and manage donor and investor relations worldwide. With 15 years of experience in the third sector in Israel, the UK, and the US, Eldan began his career in leadership development in non-profit organizations and pre-army leadership academies. In the last decade, he has been leading development and partnership-building teams in leading organizations throughout the Jewish world. Before joining Ogen, Eldan was the Partnerships Director at the Darca School network and was a member of the senior management team. Beforehand, he relocated to England as part of his role as Regional Director for UJIA. Building this role for the first time, Eldan led a team of fundraisers and educators across the Northern communities of England and Scotland. Under his stewardship, the association’s income was doubled and the impact of many young people was expanded significantly through their relationship to Israel. Previously, Eldan managed the Abraham Fund Initiatives’ fundraising efforts in Israel and Europe. Eldan has a BA in History of the Middle East and Africa from Tel Aviv University. He is married to Hila and father to three adorable children – Lily, Ilay and Gil.