preface

40
BUSINESS STRUCTURE
♦ Non-profit societies or associations, in accordance with the
“Amutot” Law, 1980, as amended on 31/12/2009 to include
provisions enabling the merger of "Amutot";
♦ Corporations with public objectives, under the Companies Law;
♦ Public trusts.
The vast majority of these entities function as “Amutot” (non-profit
associations). The Registrar of Non-Profit Associations oversees the
registration and activities of these organizations, defined by the
following characteristics:
♦ Prohibiting profit distribution to association members.
♦ Limiting of the association’s activities to those stated and authorized.
♦ Prohibiting any sale or transfer of members’ rights.
The association may be registered under standard by-laws or by-laws
adopted by the founders. In either case, the by-laws must include
provisions as to the following institutions:
♦ The Managing Committee (similar a corporation's Board of
Directors).
♦ An Audit Committee.
♦ A Certified Accountant (for associations with revenue exceeding NIS
1 million per annum).
All associations must file with the Registrar a protocol of its annual
members’ meeting as well as and annual detailed, audited financial
statements.
Many non-profit associations, upon complying with the stringent
standards prescribed by the Registrar and the Israeli Treasury, are
entitled to generous Government grants.
In addition, non-profit associations may be entitled to obtain the status
of a "public institution" from the Israeli tax authorities, enabling donors
to deduct a portion of the funds donated from their taxable income.
BDO Israel