&##9; In the years before the establishment of the state of Israel, the voluntary sector had several components. A number of organizations still active today, such as Hadassah, and the American Jewish Joint Distribution Committee (AJJDC), were funded by Jewish communities around the world. The Jewish Agency played a significant role in immigrant absorption and related services, and continues to play a critical role both in this area and in development areas. The Histadrut, Israel's major federation of workers, was and has remained a major contributor to the provision of health and social services. In addition, local organizations, many of them associated with political parties or various religious groups, also undertook significant roles in providing services before the state was established.

&##9;After independence, Israel began the process of establishing the institutions of a modern welfare state and the government took over responsibility from the voluntary sector for many of the health, education and social welfare programs. Thus, the establishment of the state involved a redefinition of the role of the voluntary sector. It was viewed as a positive part of the process of building a State, working towards assuring more equality of access for different groups, depoliticizing the service system, and reducing service fragmentation. There were certain exceptions to this trend. In the early years, for example, JDC-Israel took on special responsibility for services for elderly, disabled, and chronically ill immigrants. Moreover, over the years, new voluntary organizations gradually developed. Voluntary organizations providing services on a universal, non-political basis began to reshape the balance between the public and private sector.

&##9;According to Kramer (1984), there were considerable distinctions between the role of the voluntary sector in Israel and its role in the United States and various Western European countries. "In contrast to the U.S., in Israel the voluntary sector was not viewed as the preferred mode of dealing with social problems; nor was governmental aid perceived as controlling, contaminating or co-opting". However, this attitude has changed over time. More skepticism about the effectiveness of government began to develop along with an increased interest in privatization of services. The major issue has become in whose hands to place this privatization: the voluntary sector or for-profit organizations. In recent years, the government has become more willing to utilize the private sector as a provider of social services and some of the financial disadvantages that had been imposed on this sector were reduced. A more recent Israeli model of non-governmental organization is the NGO that is connected to the local authorities. These organizations can successfully operate services for the local authorities because they are less restricted than the municipal government in hiring employees, contracting for services and fundraising.

&##9;Legislative lobbying is somewhat less developed in Israel than in the United States and for the most part the voluntary sector plays a less influential role in it. Recently, however, voluntary organizations have become an increasingly powerful force in both policy-making and service provision.