Insights & News /  NPO

An Israeli district court rejected the Israel Tax Authority’s attempt to force the Azrieli Foundation to pay taxes in the amount of tens of millions of shekels for dividends it received and continues to receive due to its holding in Azrieli Group's shares. The court accepted the tax appeal, which was filed by Barnea Jaffa Lande, and ruled that the Azrieli Foundation,  a non-profit organization that works for the public good in Israel, is not the controlling owner of Azrieli Group and is therefore entitled to a tax exemption. The court ruled, among other things, that the ITA’s position could have a chilling effect in relation to business entities’ support of philanthropic associations. Our firm's  Zohar Lande, Eyal Nachshon, Harel Perlmutter, Nir Ziman, and Omer Keydar represented the Azrieli Foundation throughout the proceedings, which lasted about five years.

The severe economic damage caused by the coronavirus crisis has intensified the need for philanthropic ventures. The Maariv newspaper dedicated a section to highlight our firm’s pro bono activities. Adv. Sagi Gross, who leads our activity in the area of social welfare, discussed the firm’s work with the “Supportive Family” foundation.

The issue of an NPO’s investments of unappropriated funds (funds that are not immediately needed within the scope of its activities or for the purpose of advancing its objectives, whether on a short-term or on a longer-term basis) is not regulated within the scope of the Non-Profit Organizations Law or the Income Tax Ordinance. Asaf Shalev contributed an article to Globes in regard to this matter. (In Hebrew)

Simon Jaffa Adv. and Ariella Dreyfuss Adv. represented The Jeremy Coller Foundation in its donation of up to USD 50 million to the Tel Aviv University for its School of Management.

As part of our cooperation with Unistream, our office hosted the Organization's investment committee. At the meeting, the participants presented a business venture developed during the program. Adv. Micky Barnea and  Adv. Ronit Offir were chosen to be members of the jury, which also comprised CEO's and industry executives (eg. Microsoft), investment managers and directors of venture capital funds. 

Arrangements for exemption from responsibility, indemnification and insurance of officers associations (in the benefit of the public) have been gaining momentum recently, both by officers in these organizations seeking shelter under these arrangements, similar to officers in commercial companies, as well as from insurance companies that see the third sector as a potential market.  

As part of the coalition negotiations, the" HaBayit HaYehudi" party demands the amendment of the "Non-Profit Organizations" Law  as a condition of its entry to the government. Adv. Asaf Shalev, who specializes in advising non-Profit organizations, has written in an opinion piece which has been published in Maariv.