Certificate of Proper Management for an Israeli Non-Profit Organization (Amuta)
This article addresses important documentation for all Israeli non-profit organizations, particularly the certificate of proper management.
This Series of Posts
Our law firm specializes in a few different areas, including Israeli non-profit organization law. This article is part of a series sharing what you need to know about non-profit or charitable organizations (an amuta in singular and amutot in plural) in Israel.
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 requirements when submitting documents, verbal reports and conflicts of interest.
Getting a Certificate of Proper Management
In order to get a certificate of proper management, an amuta (Israeli non-profit organization) must first fulfill the requirements for annual reporting. After demonstrating that the Israeli non-profit organization is financially active for two consecutive years and is consistently submitting the necessary annual documentation to the Registrar of Amutot, the Registrar will issue a certificate of proper management to the Israeli non-profit organization.
What If We Did Not Submit Paperwork in the Past?
While the Registrar of Amutot will not issue any retroactive certificates of proper management, it is possible to receive a certificate of proper management even after failing to submit necessary paperwork in previous years. In order to receive the certificate of proper management, the non-profit organization must give the Registrar of Amutot all the necessary documents it was required to give over the past seven years.
If the Israeli non-profit organization did submit some paperwork, but did not fulfill all of the reporting requirements properly for a long period of time, the Registrar of Amutot will require three years’ worth of previous financial statements. The Israeli non-profit organization will have to complete the relevant paperwork for the current year and financial statements for the previous three years. For example, an organization hoping to obtain a certificate for 2017 must submit necessary documents for 2015 along with the required documents for 2012, 2013 and 2014.
Additional Documents and Failure to Provide Necessary Documentation
The Registrar of Amutot may require additional documents from the Israeli non-profit organization when it submits paperwork to get a certificate of proper management. If the Israeli non-profit organization fails to provide the required documents or the additional documents requested, the Registrar of Amutot may choose not to provide the Israeli non-profit organization with the certificate of proper management. In some cases the Registrar of Amutot may take legal action against the Israeli non-profit organization and impose sanctions, appoint an investigator or seek to shut down the organization.
If you currently run an Israeli non-profit organization or seek to start one (either an amuta or cheletz) and have any questions about the certificate of proper management, necessary paperwork for non-profit organizations or the Registrar of Amutot, feel free to contact us.
Advocate Joshua Pex specializes in Israeli non-profit organization law, and he would be happy to advise you on any issues related to your Israeli non-profit organization.
: 03-3724722, 055-9781688