Strong Shekel Challenges Israeli Nonprofits Amidst Increased Defense Spending
Israeli nonprofits are facing financial challenges due to a strong shekel, which has appreciated against the dollar, reducing the impact of foreign donations. This currency shift, coupled with increased government spending on defense, is straining the resources of nonprofits that rely heavily on U.S. donations. The exchange rate has dropped to 2.96 shekels per dollar, a significant decrease from the previous year, leading to a nearly 19% reduction in purchasing power for these organizations. As a result, nonprofits are struggling to maintain operations and compete with the private sector for talent, as they cannot match the rising salaries. The situation is exacerbated by the need for nonprofits to fundraise in dollars while their expenses are in shekels, creating a financial gap that threatens their ability to deliver services. 
