||Keren Hayesod (Palestine Foundation Fund), the financial arm of the World Zionist Organization, founded at the Zionist conference held in London in July 1920. Two basic views were expressed on the problem of how the World Zionist Organization should finance its work in Palestine after the important political gains made at the end of World War I. One group favored the establishment of a company run on banking lines to promote undertakings solely on a business basis. The other emphasized the need to preserve the pioneering character of the Zionist effort by mobilizing national capital through donations from the Jewish masses. There was also a proposal, which won little support, to float a national loan. The conference adopted a compromise combining the first and second proposals. The Keren Hayesod was to appeal to Zionists and non-Zionists alike for funds to finance on a nonprofit basis immigration and colonization in Palestine in order to lay the foundations of the Jewish National Home, as well as to encourage business enterprise in close cooperation with private capital. Contributions were to constitute an annual voluntary tax, with a certain minimum level.
Keren Hayesod was registered on March 23, 1921, as a British limited company. Its members (limited to no more than 50), together with the chairman of the board of directors, were chosen by the executive of the Zionist organization. The head office was in London until 1926 when it was transferred to Jerusalem. When the enlarged Jewish Agency for Palestine was founded in 1929, with equal representation for non-Zionists, Keren Hayesod continued to be the main instrument for financing the Zionist budget. From 1925, the fund operated in the United States as the United Palestine Appeal (which was a partnership of Keren Hayesod and the Jewish National Fund) which combined in 1939 with the American Jewish Joint Distribution Committee and the National Refugee Service to form the United Jewish Appeal.