Revolving funds, enduring impact: Helping reservists again and again

Amid war and uncertainty, Israel’s reservists carry a dual burden. While they defend the nation on the front lines, their families face mounting financial challenges at home. Mortgage payments, bills, and everyday expenses don’t pause for war, leaving many families stretched to their limits.

Since October 7, many reservists have served over 200 days, leaving families without their primary earners. The financial toll has been severe, with skyrocketing household expenses and limited access to credit. Banks, wary of unstable incomes, are often reluctant to lend.

This stark reality underscores a crucial economic truth: resilience requires more than military strength – it demands a financial system that can sustain families through prolonged crises. To meet this challenge, Israel must move beyond traditional aid and adopt models that turn generosity into long-term economic stability.

Among the many philanthropic efforts supporting Israel’s defenders, Ogen’s Yuval Fund stands out as a unique financial lifeline for reservists in need. Named after fallen reservist Yuval Silber, the fund provides interest-free loans of up to 50,000 shekels (approximately $13,500 USD) to reservists and their families. Loans have a five-year repayment term, and immediate access—helping families stay afloat without sinking into debt.

What makes the Yuval Fund transformative, however, is its revolving pool of capital. Philanthropic donations fuel interest-free loans, which are repaid over time and redeployed to help the next reservist in need. This creates a sustainable cycle, extending the impact far beyond the initial gift and turning every shekel donated into a lasting investment in Israel’s resilience.

This transformative model is over 30 years old, initiated by Ogen’s founder, Professor Eliezer Jaffe, who was inspired by the Hebrew Free Loan models in North America. Traditional aid provides short-term relief, but a revolving fund creates ongoing support, ensuring that donations are not just spent – but continuously reinvested.

Since its inception, the Yuval Fund has distributed over 18,000,000 NIS in interest-free loans, supported by major contributions from businesswoman and philanthropist Shari Arison who is among Ogen’s most prominent benefactors, the Gottesman Fund, as well as hundreds of other donors. Its sustainability is built into its design: as reservists repay their loans, the funds become available for the next family in need.

This model offers a blueprint for financial resilience, not just for Israel, but for economies worldwide. It demonstrates how philanthropy, paired with sound financial management, can fill critical financial gaps that conventional banks avoid.

Ogen’s broader experience in social finance underscores this point. Over three decades, the organization has disbursed billions of shekels in interest-free and low-interest loans, while maintaining a loan default rate of just 0.7%. This track record highlights how combining generosity with responsible lending creates lasting social and economic impact.

During crises, government partnerships could amplify this model further. Loan guarantees, matched contributions, and risk-sharing agreements could extend the reach of revolving funds, helping thousands more families weather financial hardship.

This is a call to action—not only for philanthropists, but also for governments, businesses, and financial institutions. Together, we can create a system where every act of generosity becomes a lasting investment in national strength. Sacrifice must be met with support, and service must be honored with opportunity.

The war will pass, but the lessons of resilience must endure. In Israel, financial stability isn’t just an economic goal – it’s a national responsibility. By blending philanthropy with sustainable finance, we can ensure that every family standing behind a soldier has the support they need – and that no one faces the cost of service alone.