The influences of globalization, the open market, the decline of the welfare state, and an increase in personal wealth have led to a sharp rise in the number of Israeli philanthropists. While these philanthropists are generally well-received in Israeli society, most requests for public recognition (such as naming an institute after a wealthy donor) are met by much of the society with resistance. This is because many Israelis grew up with the expectation that care for the public welfare was a common (i.e., governmental) concern. Nevertheless, a new generation of Israeli philanthropists, eager to invest in entrepreneurial experiments, gives an increasingly large percentage of the money spent on public needs. In the years ahead, the government must clearly define its duty, roles, and obligations to its citizens in order to establish the bounds of the third sector that still waits to reach its full potential.