Israel’s social sector “the public and private agencies, institutions, and businesses that address the country social and economic development” plays a vital part in its economy by identifying and dispensing crucial services. But even though such spending is among the highest in the developed world “5.6 percent of GDP” the country is behind in employing the relatively new tool of social or impact investing, which leads to social good while delivering a financial return to companies.

This new report explores ways that impact investing can help the nationa social sector evolve.

We identified a large gap in the marketplace, which is an important step toward building a complete social investing system in Israel, said Glenn Yago, Institute senior director and founder of its Financial Innovations Labs. We ve captured the best advice of top experts in impact investing, and we believe the time is right for bringing new approaches to Israel, where thereis great receptivity to innovation.

The report recommends ways to overcome barriers, including legal and regulatory restrictions, revenue challenges, and access to capital. It details specific approaches for scaling up current financing programs, replicating best practices from other nations, establishing a social investment fund, and creating policy tools to provide incentives for social investment in Israel