The activities of organized civil society have been crucial and central in Israel since its establishment. Over the years, the nonprofit sector has played a major role in the building and the development of the Israeli society, economy and public services. Major changes in Israeli social policy have led to a tremendous growth of its nonprofit sector in the last three decades. This has been manifested in the large number of civil society organizations, specializing in a wide array of fields and providing a broad range of services to different populations.

The chapter presents and analyzes the Israeli nonprofit sector in recent decades, presenting its development, characteristics and components. It also discusses major trends and challenges it faces in recent years, including gender segregation, challenges of Arab-Palestinian nonprofit organizations and the changing policy environment of the nonprofit sector.