The Verbal Report and Israeli Non-Governmental Organizations
Every Israeli NGO (Israeli non-governmental organization) must submit a verbal report alongside its financial statement, and the verbal report is required to receive a certificate of proper management. The verbal report describes the Israeli NGO’s activity and its organizational structure for the year in question.
This Series of Posts
Our lawyers have experience in a variety of fields, including Israeli non-governmental organization law. This article is one in a series focusing on what you need to know about nonprofits or charitable organizations (an amutah in singular and amutot in plural) in Israel. This series addresses various rules for proper and legal management of nonprofit organizations in Israel in order to better help you administer your Israeli non-governmental organization.
For more information on the Israeli Corporations Authority which oversees Israeli non-governmental organizations, see the government website. For more articles from an Israeli lawyer and legal advice for Israeli non-governmental organizations related to the topic of this article, see our articles about the certificate of proper management, reimbursements and conflicts of interest.
Preparing the Report
All three mandatory institutions of an Israeli NGO are involved in the verbal report. The Israeli NGO verbal report can be found on the Registrar of Amutot’s website, and instructions are included as well. The Israeli NGO’s Executive Board is required to prepare the verbal report on behalf of the Israeli NGO. It needs to be signed by two members of the Executive Board before it is submitted. The Audit Committee is responsible for examining the verbal report and passing on its recommendations to the Israeli NGO’s General Assembly.
Content of the Verbal Report
The verbal report includes, among other things, an update on how the Israeli NGO has been promoting its objectives, a discussion of the Israeli NGO’s structure, an overview of how the Israeli NGO has used funds that have been donated over the past year, any transactions undertaken by the Israeli NGO (whether real estate or something else) and anything of note that happened over the year addressed in the report.
If you are interested in starting a non-governmental organization (whether an amutah or cheletz) in Israel, in ensuring that you are managing it according to updated laws and regulations or have any other questions regarding the verbal report, contact us today.
Advocate Joshua Pex specializes in Israeli NGO law and would be happy to discuss the needs of your non-governmental organization with you.