Registering and Preserving an Israeli Non-Profit Organization’s Assets
This article addresses Israeli regulations on registering and preserving an Israeli non-profit organization’s assets
This Series of Posts
Our law office has experience in a variety of fields, including Israeli non-profit law. This article is one in a long series focusing on what you need to know about non-profits or charitable organizations (an amutah in singular and amutot in plural) in Israel. This series of posts gives important information on various rules for proper and legal management of non-profit organizations in Israel in order to better help you administer 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 name, logo and objectives of an amutah, regulations on using the non-profit organization’s assets and rules on transferring funds.
Registering and Preserving an Israeli Non-Profit Organization’s Assets
There are particular procedures that must be followed to register a non-profit organization’s assets. There are separate procedures involved to preserve the assets, often by investing them so they do not lose their value.
Registering the Israeli Non-Profit Organization’s Assets
If registration is required for an asset that is purchased for use by the Israeli non-profit organization, the Executive Board must ensure that the amutah’s rights are maintained. The registered asset must be registered in the name of the amutah only, and not in the name of the individual in the amutah who is using it. For example, the Israeli non-profit organization is permitted to purchase a vehicle to promote the amutah’s objectives, and it must be registered in the name of the amutah only. Additionally, the type of car purchased should be reasonable and take into account the financial turnover of the Israeli non-profit organization.
Preserving the Israeli Non-Profit Organization’s Assets
The Israeli amutah must try and maximize the use of its assets, getting the most benefit from them. Assets can include property, goods, shares and more. In general, when making major purchases of an asset, including cars, Israeli non-profit organizations should have a protocol in place regarding who must approve it, for example, directors, the Executive Board, etc.
If an Israeli non-profit organization has excess funds, they must be invested so they do not lose their value. The Executive Board must be involved in this decision. Purchased items need to be taken into account as they can depreciate in value, which is also expressed in the financial reports. Investing is one way to save excess funds’ value in light of depreciation. See the article entitled “Regulations and Israeli Nonprofit Assets” for more information on this.
If an Israeli non-profit organization wants to transfer assets, it can only do so if it has a receipt for this. It must consider if transferring assets meets the giving organization’s objectives. It must also abide by rules regarding transferring funds. If you are in doubt about transferring assets, consult with a lawyer to ensure that there is no improper distribution of resources.
Contact Us
If you are interested in registering and preserving an Israeli non-profit organization’s assets, we can help. If you are registering a non-profit organization (whether an amutah or cheletz) or wish to make sure you are managing it according to updated laws and regulations, please contact us.
Advocate Joshua Pex specializes in Israeli non-profit law and would be happy to discuss the needs of your non-profit organization with you.
:
:מאמרים מומלצים