Yad Hanadiv defines its mission as: Dedicated to creating resources for advancing Israel as a healthy, vibrant, democratic society, committed to Jewish values and equal opportunity for the benefit of all its inhabitants, carrying forward the philanthropic tradition of the Rothschild family.

Yad Hanadiv's grantmaking is focused on the areas of education, environment, academic excellence,[1] and the Arab community.

[2] It funds and operates Ramat Hanadiv[3] Memorial Gardens and Nature Park and is participating in renewal of the National Library of Israel, including the construction of a state-of-the-art, 21st-century National Library for the State of Israel.

[16] Yad Hanadiv was instrumental in the construction of the Knesset building and The Supreme Court of Israel, and in the establishment of Israeli Educational Television,[17] The Open University, The Centre for Educational Technology, Centre for Science Education (HEMDA),[18] MANOF Youth Village, The Jerusalem Music Centre at Mishkenot Sha’ananim, The Institute for Advanced Studies, The Water Research Institute at the Technion, The Environment and Health Fund, The Israel Institute for School Leadership[19] (Avney Rosha), the GuideStar Israel database of non-profit organizations, and other institutions.

The Foundation grants prizes and fellowships through several programmes: Yad Hanadiv's support for the National Library renewal includes funding, together with the Gottesman family, of construction of a new National Library building on a triangular plot facing the Knesset building, which was donated by the Israeli government.