Non-Profit Social Bank

IFLA is in the process of creating a non-profit social bank – the first of its kind in Israel – that will offer affordable credit and other low cost services.

Affordable credit is scarce for many families and small businesses in Israel. IFLA has historically relied solely on donations to provide interest-free loans. In the initial stage of the social bank, which will launch in 2018, IFLA will receive deposits from social impact investors in order to provide philanthropically minded low interest loans. This initiative will provide affordable retail banking services to various sectors of Israeli society.

Impact Fund

The Problem:

With limited access to traditional credit and banking services, significant segments of the Israeli population are financially marginalized, unable to fully participate in the country’s economy.
Low-middle income families navigate a world of financial exclusion, often paying dearly for the “informal” credit options that they can access. They can neither build assets through savings  accounts nor obtain credit through standard loans. For small business owners, loans are both scarce and expensive.

The Solution:

IFLA is launching the first non-profit social Bank in Israel, with the goals of significantly increasing the supply of affordable, accessible credit and ending the financial exclusion of a variety of socioeconomic populations.
The first stage of the social bank is the Impact Fund which will dramatically expand IFLA’s loan program by utilizing impact investments, in addition to our traditional donation based model. The  Impact Fund is an opportunity for philanthropic investors who want to play a role in systemically resolving important social problems in Israel while simultaneously receiving a return on their investment.
The Impact Fund will be the foundation for the creation of a new, sustainable social finance institution in  Israel, facilitating upward economic mobility among a large population of low and moderate income Israelis and underbanked entrepreneurs.

How It Works:

Social impact investors make a minimum million-dollar investment over a long term, allowing the Impact Fund to make loans to eligible borrowers. The longer the investment period, the higher the “social multiplier” since IFLA can recycle the money into more loans. IFLA will offer loans at an affordable interest rate to borrowers who otherwise do not have access to affordable capital. At the end of the investment period, the principal is returned to the investor.


IFLA aims to raise at least $25 million (100 million NIS) from strategic investors, including individual, corporate, and philanthropic investors for the Impact Fund. We are pleased to announce that two impact investors have already pledged $16 million combined. We hope you will join us in this game changing initiative for Israel.

To learn more about the Impact Fund please contact the Development Department today:
In Israel: 02.530.0787    In US: 212.203.0055
(Both numbers go to our Israel office)