Since the massacre of Oct. 7 one year ago, many of us have begun to profoundly reevaluate not only our worldview but also how we contribute to Israel and the Jewish world. We witnessed public services and systems in Israel and around the Jewish Diaspora faltering, overwhelmed or in need of a sharp pivot to meet extreme emergent challenges. There was a sense of urgency and emergency among donors across the globe.

Throughout my career as a wealth manager for ultra-high-net-worth individuals and a funds manager in highly regulated capital markets, I have observed a common thread: a genuine desire to do good, locked in a pervasive struggle with the inefficiencies of the philanthropic sector. High overhead costs, lack of oversight and rigid structures hamper the ability to make meaningful contributions. When I became a donor myself, I realized these inefficiencies were not mere inconveniences; rather, they were unacceptable norms that would never be tolerated in the business world, which thrives on transparency and efficiency.

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Over the last year, even as interest in donating to Israel and Jewish-related causes has surged, I witnessed firsthand the constraints many donors face even among the largest legacy philanthropic organizations and especially within the Jewish community in the U.S. and Israel. These constraints are not just obstacles but calls to action, demanding a fundamental rethinking of how we approach philanthropy and especially Jewish giving.

In October 2023, just days before the tragic events on Simchat Torah, we launched the Merit Spread Foundation with a mission to challenge and change these norms. We set out to challenge the standard practices in philanthropy in order to foster greater agility and responsiveness in addressing urgent and emergent social issues. We streamlined the whole process from donor to recipient and introduced a zero overhead policy. By embracing a far more flexible approach to giving, we enhanced the our partners’ ability to give impactfully and drive meaningful change more effectively.

In the wake of Oct. 7, our efforts pivoted quickly to assist victims of the war, including families of hostages, orphans and those displaced from their homes; but we concurrently invested in innovative projects in other areas as well, from AI-driven research to combat rare medical disorders to initiatives supporting female refugee artists from Ukraine.

In just one year, we grew from zero to $50 million in assets, raised from donors and deployed to various projects covering multiple social-benefit causes. We also established a precedent for transparency with our zero overhead costs policy — it was vitally important for us to ensure that 100% of donations go toward the purpose for which they were donated. 

We also established an endowment with a unique matching program with the aim of serving the long-term goals of our donors. The matching program allows for the increase of the assets under management and therefore the potential annual donation advised by the donors.

Our vision is bold: To be to philanthropy what Tesla is to the automotive industry, Netflix to entertainment and Amazon to commerce. We wanted to be a disruptive and transformative force for change and good in the world of philanthropy.

Our model appeals to a broad audience, including high-net-worth individuals and corporations seeking a tax-efficient and impactful avenue for their philanthropic efforts. By eliminating administrative burdens and providing a comprehensive suite of legal, operational, and technological support, we empower donors to focus on what truly matters: making a difference.

Moreover, we recognize the shifting landscape of philanthropy among younger generations. Millennials and Gen Z are increasingly looking to measure impact and retain control over their charitable contributions. This trend has been exemplified by young leaders like Mark Zuckerberg, who operate their philanthropic activities through flexible LLCs rather than traditional nonprofit structures. The Merit Spread Foundation aligns with these evolving expectations, positioning itself as a hub for the next generation of philanthropists.

As we expand our activities into Europe, beginning with Switzerland and the UK, we remain steadfast in our commitment to create a global philanthropic organization that not only meets the needs of donors and social benefit organizations but also sets a new standard for what philanthropy can achieve.

The Merit Spread Foundation is here to lead a revolution, transforming the way we think about and engage in philanthropy. Together, we can build a more transparent, efficient and impactful future for philanthropy, one where doing good is not only a wish but a well-executed reality.

One year on from Oct. 7, we are still at war and our people are still in a state of trauma. We need to think holistically and long-term, and we require new solutions to new challenges. This is what the people of Israel and Jews around the world need now more than ever.

A seasoned international funds manager and an innovative philanthropist, Alon Tal is the founder and CEO of the Merit Spread Foundation.