Activities by NPOs During the State of Emergency in Israel
Summary
In light of the declaration of a state of emergency on the home front following Operation Epic Fury, the Registrar of Associations and Endowments clarified that NPOs and public benefit companies (PBCs) may continue operating under the lenient directive dated October 10, 2023. This allows them to carry out activities aimed at providing immediate and essential assistance during the state of emergency, even if such activities do not fully align with their approved objectives.
Following the declaration of a state of emergency on the home front due to Operation Epic Fury, the Registrar of Associations and Endowments issued an announcement clarifying that NPOs and PBCs may continue to operate in accordance with the lenient directive dated October 10, 2023. Under this directive, they may carry out activities intended to provide immediate and essential assistance during the state of emergency, even if such activities do not fully align with their approved objectives.
They may do so without the need to file an application to amend those objectives, provided that the conditions set out in the directive are met (including a connection to the organization’s objectives and budgetary separation).
According to the announcement, NPOs and PBCs may conduct activities aimed at providing immediate and essential assistance for as long as the state of emergency remains in effect. This is subject to the conditions that the activities are similar to the organization’s objectives, that the organization’s institutions adopt a duly authorized resolution, and that the organization maintains budgetary separation in its accounting records to enable separate tracking of the income and expenses associated with these activities.
For example, an NPO whose objectives include “assistance to the needy” may expand its routine activities and raise donations to purchase food, supplies, or services for people harmed or affected by Operation Epic Fury and the state of emergency. This is permitted provided such assistance is immediate and essential and that the activities remain aligned with the NPO’s objectives.
NPOs and PBCs wishing to operate in this manner must adopt an appropriate resolution through their institutions. In addition, they must separately document in their accounting records all activities carried out within this framework, so it is possible to clearly track all related expenses and income.
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Adv. Sagi Gross, a partner and head of Barnea Jaffa Lande’s NPOs practice, is available to assist with any matter or question relating to NPO activity during routine times and states of emergency, including advice on implementing the Registrar of Associations and Endowments’ latest directive in connection with Operation Epic Fury.