Ms Hopkins caused outrage in May last year when she called for a "final solution" in the wake of the Manchester Arena bombing which claimed the lives of 23 people. The offending tweet was subsequently deleted.
Ms Hopkins did not speak at Sunday evening's event, which celebrated 70 years of the founding of Israel, and the ZF confirmed that it did not invite her.
Tickets to the dinner cost £125, with VIP seats going for £180. Tables were sold for £1,100.
Images later surfaced on Twitter of Ms Hopkins posing for photographs with Mark Regev, the Israeli ambassador to the UK.
Paul Charney, the ZF chairman, said, "For clarification purposes, Katie Hopkins was not invited directly by the ZF to our annual dinner, but as a guest of a guest.
"A photo at the event with Ambassador Regev was taken during a long line of fans queuing for a photo with His Excellency and should not reflect on him or on the embassy.
"On behalf of the ZF we unreservedly apologise for any offence caused by Ms Hopkins' presence, and will look to learn the lessons for the future."
The fundraising evening was also marred by the heckling of Gideon Sa’ar, a former Israeli Minister for Internal Affairs and a potential successor to Benjamin Netanyahu.
The Israeli embassy in the UK has been contacted for comment.
