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One of the iconic activities in Israel is working ("volunteering") on a collective farm: a kibbutz or a moshav. www.kibbutz.org.il/eng/welcome.htm
Another popular option is to volunteer for work on an archaeological excavation, mostly conducted in summer at a variety of locations. Most Israeli excavations offer college/degree credit for international students. www.ancientneareast.net/volunteers.html
While working on a tourist visa is illegal, if you stay at any cheaper hotel in Tel Aviv or Jerusalem, the staff may offer to put you in contact with opportunities to wash dishes or work in construction. Pay is only around $5 an hour, and if caught, you can expect to be deported and blacklisted from the country for a period of no longer than one year.
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