Dual Purpose Body in Israel and Non-Profit Organizations

An Israeli non-profit organization or Israeli amutah may be considered a dual purpose body in Israel if it is considered to have both a private and public function. If an Israeli non-profit organization is found to be a dual purpose body, it is subject to stricter regulations (i.e., obligations of public law). This article addresses the criteria involved in assessing whether the Israeli non-profit organization is a dual purpose body.

This Series of Posts

Our law firm specializes in a variety of fields, including Israeli non-profit law. This article is one in a series addressing issues related to non-profits or charitable organizations (an amutah in singular and amutot in plural) in Israel. This series addresses rules for proper management of non-profit organizations in Israel in order to better help you manage your Israeli non-profit organization.

For more information on the Israeli Corporations Authority which oversees Israeli non-profit organizations, see the government website. For more articles from an Israeli lawyer and legal advice for Israeli non-profit organizations related to the topic of this article, see our articles about the three mandatory institutions of an amutah, mergers of amutot and rules on transferring funds.

Elements of a Dual Purpose Body in Israel

In order to determine whether an Israeli non-profit organization is a dual purpose body, here is a non-comprehensive list of guidelines:

1) The organization focuses heavily on a matter that is also important to the public interest.
2) The organization functions or benefits as a monopoly.
3) The organization directly or indirectly receives parts of its annual financial turnover from taxpayers.
4) The organization is linked with some sort of administrative authority that is linked to the public in such a way that the organization is considered an authority on pertinent issues.
5) The organization’s activities address sensitive issues related to religion, ethnicity, traditions or culture.

If the organization’s activities lean more heavily toward association with the public, there is a greater chance that it will be considered a dual purpose body. If this is the case, then the amutah will be subject to obligations related to public law.

As the above list is non-comprehensive, it is important to consult with a lawyer if you are unsure about whether your Israeli non-profit organization is a dual purpose body.