Client updates /  NPO

Due to the Swords of Iron War and the state of emergency, the Registrar of Amutot and Endowments published a new directive extending the deadlines for NPOs to file their 2023 annual reports in order to enable them to obtain a Certificate of Proper Management for 2025.

According to the new guidelines, until the declared state of emergency in Israel is over, NPOs (amutot and public benefit companies) may conduct activities intended to provide immediate and vital assistance during the war, even if these activities do not fall under their approved objectives.

The Israeli Supreme Court has ruled that NPOs are entitled to receive an exemption from real estate betterment levies, provided they use the proceeds from the sale of such real estate for a public purpose specified in the law.

While substantial defects were found in the nonprofit organization (amutah), the court accepted and approved a settlement. Issuing a dissolution order to the amutah would have affected a large community of people that require its services.

The Israeli website “GuideStar,” which provides information about Amutot (One of the common types of non-profit organizations in Israel) and PBCs, launched a new and important interface that enables these organizations to independently update their details and information.

The Israeli High Court of Justice ruled recently that section 46 of the Income Tax Ordinance does not authorize the Knesset Finance Committee to exercise broad discretion in recognizing NPOs and in fact the Committee’s approval is limited solely to that related to its supervisory role.

As part of its effort to deal with the coronavirus crisis, the Social Services Division of the Accountant General’s Department at the Israeli Ministry of Finance recently released an aid package for the benefit of third-sector organizations.

In light of the coronavirus outbreak in Israel, and the restrictive measures taken by the government, the Israeli Corporations Authority has issued updated guidelines to ease the obligations of Amutot and PBCs.

Recently, after a considerable number of meetings and discussions were held between representatives of third-sector organizations and representatives of a number of authorities, led by the Prime Minister’s Office, the inter-ministerial committee tasked with easing the regulatory burden on Amutot and PBCs published a report of its conclusions.