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FAQ – All About Nonprofits in Israel

Joshua Pex
Joshua Pex

Paul Prince

The team of lawyers and assistants are incredibly professional. Aiming to give their clients the advice possible regarding the normative and the law of Israel. With well trained and professional secretary at the front desk to the lawyers team, I could say that I had one of the most professional services possible. I'm super glad of choosing Joshua Pex of Law office for immigration solution, lawyers to advise in my case, to me, it is remarkable.

Joshua Pex was both an amazing human being and an inspiring human rights attorney. I reported directly to him for various activities I performed as in intern. I was impressed with his incredibly solid character. He is trustworthy, fair, and goes above and beyond to advocate for the vulnerable. He is completely trustworthy and high caliber in his work. His partners and employees are very blessed to work with him. I am honored to know them.

Heather Lebrun

Lilian Granovsky

I can highly recommend these services!
Every time we turned to Joshua we always got a professional quick and helpful respond.

Alexander P Gutterman

EU PASSPORT ! Big news! Thanks to Michael Decker and the other good people at the law office, as well as to the virtue of my ancestors, the cruelty of the Inquisition, reparations issued in the Iberian Peninsula, and etc, I am delighted to be on track for Portuguese and European Union Citizenship! A truly incredible development and one which brings me deep joy.

Kfir Cohen

We were searching for a law firm that will be honest with us and really work hard for a satisfying result, it wasn't an easy task
We found them online; they were the only law firm from all of our searchings which were completely honest and NOT gave us just what we wanted to hear
Using them guaranteed honesty above all. A legal team that is friendly and cares for a superb result
They really care about helping their customers without any other interest
Nadia gave us service behind what we expected; she was professional which lead to fast and easy process with great result
We definitely recommend using them

Michelle Long

Josh has been helping me on and off for a few years now. I have needed legal advice and assistance with immigration due to a complex situation of mine, and he has been extremely available and responsive, honest and clear about my route and how to proceed. Very much recommended!

Greg Olson

We highly recommend Adv. Mike Decker and have know him for many years. He has helped our family with many battles over the years. We recently received our permanent residency after 23 years in Israel. We so much appreciate Mike’s representation of us.

Esty A

I had a consultation with Batya and she was very helpful. She made sure I understood all the information I needed, and was patient with me in gathering documents I needed.

Amir Abt

The best lawyer firm I’ve had dealt with. I would like to thank Anat Levi and Ariel Galili from the Jerusalem branch for all of their efforts and patience, we could not have been Able to reach to where we are now without them

Shurouq Hajyassin

We were very satisfied with the consultation we had.
You were very straightforward with us , You tried to help us in every way you could . we really appreciate that.
And of course the fast reply we got from you on our emails and the appointment you gave us .
You deserve more than 5 stars????

Morgan Jones

The team at Decker, Pex & Co have been awesome to work with in helping our US company establish banking in Israel and in providing counsel for legal needs in Israel. I highly recommend!

Stuart Safft

I am delighted to report that my wife and I have just obtained our Israeli citizenship. We will be forever grateful for all of the help, guidance and support which Ariel Galili of Decker, Pex & Co. provided through this process.
I am a Jewish, 80-year-old American, and my wife is not Jewish. We had started the process on our own back in November 2020 via the Jewish Agency and Nefesh B’Nefesh, but soon became entangled in the delays and often-changing regulations due to Covid-19. The pandemic also caused delays in obtaining the required apostilles for various documents from various state agencies and the US State Department.
We found Decker, Pex & Co. On the internet and began working with Ariel in late November 2021. Ariel did a superb job of leading us through the process, helping us to understand which documents were essential, which would most likely be required, and which, though included on the list of required documents, were rarely required. He helped us several times to understand what was likely and unlikely to occur as “the next step.” Helping us manage our expectations was extremely useful to us.
Besides his knowing the laws, regulations and procedures, Ariel also made us feel that he was truly interested in helping us to successfully work through this process in as smooth, timely, and frustration-free manner as possible.
My wife and I strongly recommend anyone planning to go through this process seriously consider hiring Decker, Pex, Ofir & Co. and, specifically, Ariel Galili.

David De La Rosa

Very friendly, professional, and effective, highly recommended

Yossi Montrose

Very knowledgeable and professional

Arielle Bosch

Incredibly knowledgeable, approachable, accessible, and evident across the board that they truly care about the people they are helping. They are quick to respond, engaged, and obviously top-notch lawyers. I couldn't recommend them highly enough. Thank you, Joshua and Itamar for your help with our Joint Life Application. You were a calming energy during a storm - always breathed a sigh of relief after speaking with you. It is so difficult to get straight answers from the Misrad Hapnim, but you guys are straight shooters. I appreciate your candor and evident integrity. Hope to work with you in the future, and will send everyone I know in need of legal aid your way. Thank you for your guidance and support.

Michael Soffer

I would like to recommend Attorney Yehuda Elcharar. He assisted both me and my company in a complex lawsuit. He handled negotiations that led to a favorable outcome much quicker than expected.

I am extremely pleased with choosing Attorney Elcharar. Many thanks also to the office team, Oz and Chaya, for their assistance throughout the entire process.

Thanks again ????

Israel iluz

We were very satisfied with the service of Nehama. She was very professional in all her dealings and kept us informed all the way.
We highly recommend this law firm. They proved to be reliable, efficient and pleasant to work with.

Sophie Cooperman

Oded Ger did an excellent job by reviewing a modeling contract I was offered. Explained the bad clauses in the contract, and their possible consequences. Thank you for your amazing job, your professionalism, your consultation and honesty. You showed me from your experience how it can be done differently. It was the best decision choosing you as my lawyer.
I highly recommend this firm, especially Oded Ger.

Matthias Oppliger

I have been receiving services from this Law Firm for several years now and I want to say THANK YOU to the team, especially Joshua Pex. They are doing outstanding work. The services I have received for both our Israeli non profit association but also our social business have helped us solve many issues at hand and provided solutions in complicated situations. Personally, I am grateful for support in visa issues as a foreigner living now in Israel for many years.

Shaltiel Devorah

Mr. Joshua Pex is knowledgeable and Professional. I really appreciate his courteous and direct approach.

Josh W-S

The firm had a quick response to my last-minute needs, they were helpful in communicating with me in English, and they fulfilled my needs in a timely fashion.

Dumitrascu Cristina

Best lawyer house from Israel! I couldn’t dealt with my situation without their professionalism and effectiveness. Their dedication to every legal aspect and their drive it’s how a true lawyer house can be!
Working in European market and international now, I couldn’t dare to let myself wide my wings on countries unknown to me. Definitely they’ll be the lawyers representing me, my business at every international aspect and on personal development.
When you hear Decker,Pex,Ofir &Co, you hear 10+ class services, luxurious professionals, confidentiality and exclusive attention to your needs.

lynn vonne

Excellent service, very friendly and helpful, fast responding and very patient. Highly recommend. I will choose them again next time if needed.

TarcisioePotira Freitas

I really recommend the law office's services. The service is very professional and efficient, the price is right. I am satisfied with the services I needed and happy to have known them.

Halvor Ronning

Courteous, clear, efficient service.

Наталья Мажуга

Great lawyers Joshua Pex and Nechama and Michael Deker who really want to help you and I have very trustful relationships with them. All my cases they took they won. Thank you and let’s keep working together

Sveta Vashkevich

We (myself and my husband) came to Mr. Joshua Pex – for his professional advice – and we received such human warmth and caring attitude, that our hearts melted …

His attention to our details and our situation peculiarities, combined with his professionalism and knowledge, helped us to map out what needs to be done on our part: we appreciate and recommend You, Mr. Joshua!

Lauma Zariņa

This is definitely the best lawyer I know!!! very honest and super helpful he really helped me a lot dealing with immigration issues in Israel and it was very successful!
I highly recommend

YK C

We had a pleasure of working with Irena Rosenberg who assisted in getting our two U.S. born children registered in Israel and supported visa process for my wife in 2021. During the pandemic, my wife and I decided to move to Israel where I am originally from after living in the U.S. for over 20 years, but we had no idea how to go about securing visas before and after arriving in Israel. Irena is knowledgeable, reliable and competent lawyer who always had answers to all our questions which made us feel confident that everything would be fine with her assistance. We are now happily living in Israel and are so grateful to have Irena who is a genuinely nice person as our lawyer.

Andreas Kelling

We have been working with Decker, Pex & Co - Law Firm in Tel Aviv for many years very well. Because we appreciated their lawyers services, we recommended businesses and individuals again and again to go there as well.

Eden Weiss

Extrmely friendly, professional and helpful. A big thank you to Irina especially from the Jerusalem office. Highly Recommended.

Sergei m Vashkevich

We came to Mr. Joshua with so many questions (and most of all, with so many concerns and worries) …

When we explained our case to him, first of all, he calmed us down and helped us to see the big picture, which took away our fears;

Then he presented us with a detailed explanation and a few options to explore, and a timeline, how things work and necessary steps to undertake on our part,

We thank and highly recommend Mr. Joshua for showing us so much empathy, care and professionalism (!)

Gáspár Erőss

If you need to solve any complicated legal issue in Israel, don't hesitate to contact them. Otherwise you will loose hours/days/weeks with things that they can solve in minutes. They helped me to obtain my expert working visa in Israel and even after that they responded further questions and gave me advices related to administrative issues in Israel which saved me a lot of time. Irena Rosenberg and Michael Decker worked on my case, they are very professional and helpful. They will not let you down, feel free to contact them.

Genaan Abdelall

I cannot recommend Nechama enough! Her expertise, professionalism, and dedication to her clients is unparalleled. From the moment I reached out to her, she provided clear and concise communication, and helped me navigate through a complex legal issue with ease.

Throughout the entire process, Nechama went above and beyond to ensure that I was informed and comfortable with every decision. She demonstrated a deep knowledge of the law, and was able to offer sound advice that ultimately led to a positive outcome.

What sets Nechama apart is her compassionate and empathetic approach to her clients. She truly cares about the well-being of her clients, and it shows in the way she handles every case.

If you are in need of a lawyer, I highly recommend Nechama.

Dongdiet & Nellie

We are very happy with the services. Somehow they managed to translate the law lingo into language we actually understand 😉 and their outstanding YouTube videos helped us to have a better grasp of what process we had to go through. Their patience, clear explanation and experience are very valuable. It's also very nice to know that you will receive response promptly; it made us feel we can really trust their services. We recommend all those looking for immigration lawyers to get in touch.

Adi Katina

Great Team. With no doubt, this office is actually thee best-leading office in Israel. Simply put, if you want your case to win, just join them, hand in your documents, and celebrate the victory.

Kindest regards,
Adi k.

Jacob Newberry

A really excellent firm. They knew exactly how to handle my situation effectively and efficiently, and we got the result I needed without much fuss. Adi Berger was a wonderful advocate for me and I am deeply grateful for her help!

Marce Ruth St. Rey

Party time in the heart, my beloved husband received his residence after so much time of battles and faith. Gratitude, God has blessed us with wonderful beings who have accompanied us, including a "precious angel" who touched our hearts, our excellent and fantastic lawyer: Maria Chernin Dekel, sweet and wonderful human being, who has guided us and stayed On our side. side in this intense legal transit whom we bless on every occasion. God bless you dear Maria, you have exceeded your professional duty by containing us and collaborating with us in hard times, very hard, for that we want to thank you publicly, you are unique!!!
We bless and thank the entire team at Decker Pex Tal Ofir Law Firm.

Schruuf

We were very pleased and content with the services of this law firm. They supported us 100% and solved our case successfully, we couldn't be happier.

Tomer Hila Birnbach

I received a recommendation from friends about the firm, and indeed every word is correct, a service team, professional, welcoming, a fair price for the work I requested, I am satisfied

Michael and Ariellah Waizman

For Advocate Joshua Pex.

We were in a devastating situation when my wife received an order from the immigration office to leave Israel within 30 days, without any explanation, after we have been married and in the process for six and a half years. We heard of Advocate Pex through a friend of a friend. We contacted Mr. Pex and he was ready to help us when he heard of our situation.

The service is amazing! Always ready to assist without regard to the time it takes. The advice Mr. Pex gave us was great, such as what to do, he gave useful links, and advice about which officials to contact. The price for the service was great!

The process until we received the extension for another year for my wife was not long (3 months). Things started moving once Mr. Pex came into the picture.

We highly recommend Advocate Joshua Pex! We achieved our goal and the fear of deportation has been lifted!

Prima Lorenzo

I admire the Austrian citizenship team in Tel-Aviv branch! They deserve more then 5 stars!! They are very friendly and professional. I've got Austrian citizenship in 4 months for all family members which consists of 12 people! The entire team is very friendly and responsive. They are always answering questions and support during the process. I recommend to everyone. Was 100% satisfied.

Priscilla Moses

competent consulting, fast processing, reliable, warm & good team. highly recommended

This article, FAQ – All About Nonprofits in Israel, will briefly address many issues about establishing, managing and financially providing for an Israeli nonprofits. 

Israeli amutot, or nonprofits, are regulated by the Israeli Corporations Authority

How Do I Register an Israeli Non-Profit (Amuta) or Public-benefit company (Cheletz)? 

Israeli nonprofits associations (“amutot”, or the singular “amuta” or “amutah”) are sometimes referred to as charitable organizations, and the nonprofit must have the public benefit as its primary goal. Additionally, amutot are dependent on donations and grants.  

Israeli social businesses public benefit corporations (cheletz) are different from amutot in that they have shareholders, and also may have a business component to their work that generates income.  

In order to register a cheletz, you must appoint shareholders who are owners of the social business ‘ nonprofit company. You need a minimum of two shareholders to start. Additionally, you must pay a fee, ~800 shekels, to the registrar of companies. Furthermore, the organization will need to accept or draft by-laws. The registration process generally takes 45 days.   

To register an amuta, or nonprofit organization, you need: two founding members, a name, two alternative name suggestions, amuta goals, home address for the two founders, and address for the amuta. Once the registration is complete, the amuta will need five more members to join, and these seven members need to submit their names for the registration process. You also need to pay registration fees. Once this is complete, the founders need to sign the registration documents in front of a lawyer and submit the documents to the Registrar of Amutot. The entire process generally takes less than a month.   

For more information about nonprofits in Israel, see our articles: Israeli Amuta Registration, 3 Mandatory Institutions of an Amuta, Public Endowment for Non-Profits (Hekdeshim)

about nonprofits in Israel

What’s the Difference between an Amuta and Cheletz? 

An amuta has a few different names in translation — a nonprofit or charitable organization. A cheletz has a few different names as well — community interest company (CIC) or social business. Both of these types serve the public interest.  

There are a few key differences: 

An amuta is accountable to the registrar of amutot and serves the public interest without generating a profit. An amuta obtains funds through donations and grants. 

cheletz is a limited liability company registered under the Israeli Corporations Authority while also abiding under the oversight of the registrar of amutot. While a cheletz does not generate income for shareholders, it does have a business component to it, allowing it to generate income, that an amuta does not.    

How do I open an amuta bank account? 

After registering your amuta or cheletz organization at the Ministry of Justice, you need to open a bank account. In order to open a bank account, you will need incorporation certification, organizational by-laws, a list of your board members and directors, protocol of the decision to open a bank account, documents showing that signatories are the same as those designated by the organization, Israeli ID or foreign passport of signatories, information about how the account will be used, FATCA declarations for US citizens, contact information for signatories, a letter of approval by an Israeli lawyer, and a declaration regarding holders of interest and beneficiaries of the account.   

We provide more information on this along with mandatory paperwork for an existing nonprofit organization here: How to Open an Amuta Bank Account and Mandatory Paperwork to Open an Amuta Bank Account.

Can I get an arnona discount for my Israeli amuta? 

Since August 2016, the Israeli Knesset approved an amendment to the 1938 Municipal and Government Taxes Ordinance (link in Hebrew only) making a 67% arnona discount relevant to most associations. In order to get this money, an organization must be properly registered and administered. The discount is given for no less than three years, and you need to submit a signed affidavit indicating that the amuta’s goals and activities will not change during the period when it receives a discount.  

For more information about nonprofits in Israel, see our articles: Arnona Discount for AmutotCertificate of Submission of Documents for Israeli Nonprofit Organizations, and Certificate of Proper Management for an Amutah. 

What does the Israeli amuta general assembly do? 

The General Assembly is one of three mandatory institutions in an Israeli amuta. The General Assembly includes all amuta members. It is required to meet once annually, or as often as indicated in the amuta’s by-laws. The General Assembly meeting should be scheduled at least ten days before it is held, and the call for a meeting should include an agenda listing subjects to be discussed in the meeting.  

For more information, see our articles: The General Assembly in an Amuta, Israeli Nonprofit Organizations Executive Board, Israeli Nonprofit Organizations Audit Committee, Israeli Nonprofit Organizations’ By-Laws and Written Procedures and Nonprofit Law and an Amuta’s Institutions. . 

FAQ - All About Nonprofits in Israel

What does an Israeli amuta executive board do? 

The Executive Board is the institution responsible for managing the amuta’s affairs and has the authority to make decisions that are not already specified in the law, by-laws of the amuta or designated to the other institutions of the amuta. 

What does an Israeli amuta audit committee do? 

The Audit Committee is made up of at least two members of the General Assembly and are elected by the General Assembly. The Audit Committee helps make sure that the organization is properly managing its finances. This committee can examine the amuta’s financial affairs, review the financial affairs of the amuta, and more. It is required to examine the amuta’s finances annually, making recommendations for the Executive Board and General Assembly.   

What do I need to know about choosing an amuta’s name and logo? 

You must choose a name that isn’t used by an existing association. It is possible to look up names in advance to ensure that the name you have in mind is not already taken. When applying for amuta registration, you must provide three names (a preferred name and two alternatives). 

 An Israeli amuta is required to use its full name on all material the amuta signs and publishes. It is not permitted to use different names or shorter names for other purposes. Additionally, the abbreviation RA (registered amuta), registered amuta, or amuta must follow the name when it is mentioned. 

It is permissible to use the logo of the amuta without writing RA or one of the other variations listed above. There are not specific limitations around the logo’s design so long as it does not mislead people regarding the work of the amuta. 

For more information, see our articles: Israeli Amuta Registration – Legal Requirements and Israeli Amuta – Name, Logo, Objectives. 

What do I need to know about writing an amuta’s objectives? 

When you register your organization at the Registrar or Amutot, you must list your organization’s objectives. This is important to consider carefully, as an amuta is not permitted to conduct activities which do not contribute toward the amuta’s objectives. If an organization is operating according to its objectives, it is eligible for a certificate of proper management.  

After you have decided on your objectives and submitted them to the Registrar, you are able to update them. The Executive Board needs to present the General Assembly with the issue, also demonstrating that donor-advised funding will meet the objectives for which it was given. The General Assembly will also need to discuss any objective changes, and this then needs to be passed on to the Registrar. In order to add or take away from current objectives, the organization will need to obtain court approval.   

For more information, please see our article further discussing an Amuta’s Objectives 

What are the amuta’s by-laws? 

An amuta’s by-laws govern various situations for an amuta, providing various legal definitions and standards for operation. The Executive Board must act in accordance with the amuta’s by-laws, and the by-laws act as a contract between amuta members and the amuta. In the event an amuta does not have a by-law to address a particular situation, then model by-laws — supplemental by-laws to help an organization with governance when by-laws do not apply — are applied. However, model by-laws cannot override an amuta’s by-laws. 

For more information all about nonprofits in Israel, see our website. For more on amuta by-laws, please see our article on Standard Amuta By-Laws 

What are written procedures?  

 An amuta’s written procedures address operational and routine management issues that are not addressed in the by-laws. In order to manage effectively, organizations need to detail how activities in the organization should be conducted. This can include written procedures on how employees are hired, how petty cash is dealt with, and more. Any written procedures must be approved by the amuta’s Executive Board. 

For more information, please see our article on the Israeli Non-Profit Organization’s Written Procedures 

What documents does an amuta need to submit annually? 

Documents that must be submitted to the Registrar of Amutot by an amuta are listed on the Registrar’s website. These forms must be filled in, signed, and submitted to the Registrar annually. These forms need to be accompanied by 1) a copy of the General Assembly minutes from the annual meeting, 2) an annual verbal report, 3) annual financial statements, 4) the General Assembly’s approval of #s 2 and 3.  

 There are other forms that need to be submitted when a situation applies, such as when the amuta has moved office location and needs to update its address with the Registrar, when new members are appointed to the Executive Board or Audit Committee, a lawsuit has been filed against the amuta, and more.  

For more information all about nonprofits in Israel, see our website. For more on annual documents and situations when additional documentation is required, please see our article Requirements When Submitting Documents to the Registrar of Amutot 

How can I get a certificate of proper management (nihul takin)? 

An amuta is eligible for a certificate of proper management (nihul takin) if it fulfills all the necessary annual reporting requirements. After the organization is active for two years and is in good standing for its document submissions, the Registrar of Amutot will issue a certificate of proper management to the amuta 

In the event you did not submit the correct paperwork in the past, it is still possible to obtain a certificate of proper management by providing the Registrar with three years of financial statements. This means that an organization that wishes to obtain a certificate of proper management for 2022 must submit the documents for 2020 along with documents for 2017, 2018, and 2019.  

For more information on this issue and potential legal action that can ensue due to failure to submit required documents, see our article Certificate of Proper Management for an Amuta. 

How can I get a certificate for submission of documents? 

A new or recently inactive amuta is not eligible to receive a certificate of proper management. In order to be eligible, it has to be active for two years. However, the organization can apply for a certificate of submission of documents. This can be helpful for the amuta to show donors or others that it is being managed properly, and it can be used to demonstrate that the organization is a “public institution” to the tax authorities in Israel.  

For more information on exactly what needs to be done to apply for a certificate for submission of documents, see our article Certificate of Submission of Documents for Israeli Nonprofit Organizations 

What do I need to know about amuta financial management? 

Israeli laws for an Israeli amuta dictate that the organization must follow specific accounting standards. Every financial transaction undertaken by the amuta must be recorded, and accompanying documentation must be preserved, including, among others, invoices, receipts, and more. Additionally, any amuta that turns over more than 750,000 NIS annually must use a double-entry bookkeeping method.  

For more information on the topic, see our article Financial Management and Record Keeping in an Israeli Amuta 

What do I need to know about amuta record keeping? 

 Accurate record keeping is essential in Israeli non-profit organizations. Financial accounting standards for non-profits are very high, and accounting must be maintained in the organization or by an external person who maintains accounting documents for thamuta. This includes records of every financial transaction, including withdrawals of money, invoices, and receipts. If your amuta turns over an excess of 750,000 NIS, it must follow the double entry bookkeeping method. 

What needs to be included in the annual financial statement? 

The Executive Board of an amuta is responsible to prepare an annual financial statement. The preparation can be outsourced, but the Executive Board must ensure that it is prepared properly. This statement includes a balance sheet of the amuta’s income and expenses along with details for the five highest salary earners in the organization.   

In addition to the financial report, an amuta must submit an annual verbal report (see below). 

What is the annual verbal report? 

All three mandatory institutions of the amuta must be involved in the verbal report. The Executive Board is responsible to prepare the report detailing how the amuta has been promoting its objectives, address how the amuta has used its funds over the past year, and detail major transactions that occurred or anything else of note. The Audit Committee is responsible for examining the report and making any recommendations. The report is then passed on to the General Assembly prior to being submitted to the Registrar of Amutot. 

For more information, see our article, The Verbal Report and Israeli Non-Governmental Organizations. 

When can board members be paid for services? 

Israeli law on non-profits is very strict with regard to payments to board members in order to avoid conflicts of interest. The General Assembly can decide if an Executive Board member can be paid for their services. At the same time, Israeli law clearly says that board members may not be employed by the non-profit organization. However, they may receive limited reimbursements for participation in meetings.  

For more information on payment to board members, and particular cases when board members can be paid, see our article Israeli Amuta Payments to Board Members, Rules, and Restrictions. 

What do I need to know about reimbursements in an amuta? 

Israeli law on non-profits provides general rules around permissible reimbursements in an amuta. A lot of this information relates to board members where there is a need to avoid conflicts of interest. There are two overarching categories related to reimbursements, those related to amuta meetings, and those related to promoting the amuta. There are options to reimburse board and other amuta members for expenses related to amuta meetings and promoting the amuta, but only under certain conditions related to the person’s residential distance from the meeting place, if they have a disability that might require special traveling expenses, if the amuta’s turnover is higher than 50 million NIS and board members live outside the country, and more.  

The underlying principle behind the stipulations, which we detail in an article linked below, is to ensure responsibility and accountability between the three mandatory institutions of the amuta, the Executive Board, Audit Committee, and General Assembly. 

For more specific situations and scenarios detailing permissible reimbursements in an amuta, see our article Reimbursements and Israeli Not for Profit Organizations. 

 What do I need to know about donors and reporting large donations? 

Israeli non-profit organizations are required to maintain internal records about their donors and donations. This includes: the donor’s name, a description of the gift or donation given to the non-profit organization, and the date of the receipt.  

A donor is allowed to remain anonymous so long as they donate less than 20,000 NIS per year. If the donor gives more money than this but still wishes to be anonymous, the amuta can submit a letter to the Registrar of Amutot providing the name, gift, and date of receipt for transparency’s sake, and a case arguing why the donor should remain anonymous.  

There is an exception to anonymity, and that is when a foreign state provides a gift or donation greater than 20,000 NIS to an organization that has a turnover exceeding 300,000 NIS; the foreign state may not remain anonymous, and this information must be listed on the amuta’s website. 

For more information about donors, donations, and how a foreign state is defined, see our article Non-Profit Organizations and Donations in Israel. 

What do I need to know about conflicts of interest? 

Section 27 of the Israeli Amutot Law clearly states the responsibility of the Executive Board to implement the amuta’s interests, which includes managing employees and avoiding conflicts of interest in the organization. Family relationships include siblings, parents, grandparents, children, grandchildren, a spouse, and more. Objectivity in the organization can be influenced due to family relationships. As a result, for example, an Executive Board member’s family member may not serve on the Audit Committee. Additionally, family relationships are not permitted between a majority of Executive Board members. This means that, if an Executive Board has five members, two may be related to one another, but three cannot.  

For more information detailing conflicts of interest and family relations, see our article Conflicts of Interest in Israeli Non-Profit Organizations 

What can I expect in an in-depth audit?   

The Registrar of Amutot regularly engages in audits of non-profit organizations to ensure they are acting according to their obligations and objectives. New organizations are not audited, but once you obtain a certificate of proper management, you can be audited.  

Auditing can occur if the government has received complaints about mismanagement in the organization. In an in-depth audit, an organization’s use of funds are scrutinized, looking for leftover money, double funding (money from more than one source for the same project), mistreatment of employees, and more.  

It is important to comply with an in-depth audit and obtain expert legal advice on preparation for an in-depth audit.  

We provide many details on how an audit begins, what it examines, and addressing problems in our article Israeli Non-Profit Organizations and an In-Depth Audit in Israel. 

Contact Us – All About Nonprofits in Israel

If you seek legal assistance with your amuta or cheletz in Israel, please contact us. Advocate Joshua Pex specializes in non-profit law and would be happy to help you.

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