Keren Levi Yitzchak was established by the Lubavitcher Rebbe, in 1964, in honor of his father, Rabbi Levi Yitzchak Schneerson, primarily to provide short term loans to Yeshiva school teachers.

At the farbrengen of 20 Av 5724 (1964), the Rebbe shared a powerful story of a young mother who, upon unexpectedly receiving $5,000 owed to her for teaching Torah studies, chose to donate the entire amount to charity rather than use it for herself. Her selfless act, giving everything to Hashem without hesitation, was an inspiring example of dedication to Torah and the joy of giving. The Rebbe emphasized that this level of commitment should be emulated by all, showing that true devotion to Torah and G-d comes from giving selflessly and with joy.

In response to the hardships faced by Melamdim (teachers of Torah), the Rebbe established the "Keren Levi Yitzchak" fund to support them in receiving proper compensation, ensuring their dignity and the value of their work. Later, the Rebbe founded "Kolel Tiferes Zekeinim Levi Yitzchak" to engage elderly Jews in Torah study, demonstrating his ongoing commitment to ensuring Torah learning is accessible to all, regardless of age or circumstance. Through these initiatives, the Rebbe highlighted the transformative power of Torah study and the importance of supporting those who dedicate their lives to it.

In accordance with the Rebbe's oft repeated instructions to give to charity in sums equivalent to the numerical value of the Hebrew name, it has been suggested that donations be given in amounts of 254 — the numerical equivalent of the name Levi Yitzchak.