Social participation of citizens in the public sphere and their impact on living space is a universal human-political goal. The present study examined the role of public space in understanding the dynamics of volunteering in rural locations in Jewish and Arab areas in Israel. Through in-depth interviews (N = 31) with residents, social organizations, and government — we have seen that the way individuals interpret public space has a decisive effect on their social participation. In two villages, an intergenerational struggle took place over leadership and shaped the public space. The structure of the administration (the regional council) and lack of control over the villages (run by local committees) intensified the struggle and impeded voluntary activity. Examples from both villages have shown that non-institutionalized volunteering tends to dissolve and become a “tool” in imposing outcomes in controversial issues. Volunteering was successful when it originated in a “neutral,” structured place (MDA, fire brigade, “Warm Home” initiative), unrelated to any conflict arena. Such volunteering activities empowered the volunteers and provided them with rewards and status. The contribution of the present research is in emphasizing the role of the public space in understanding the dynamics of volunteering. Israel is particularly relevant in this regard because it has a rural area where many class, historical, and national aspects intersect. A better understanding of these dynamics in Israel can contribute to such understanding in other multi-ethnic societies, to expand citizens’ participation in social life.