Israeli Amuta Document Submissions

The benefits of submitting the required documents and forms for Amutot

        If an Amuta submits all the required paperwork time, they are subject to certain benefits. Securing a proper management certificate or a certificate of good standing is a critical first step for any organization seeking to establish credibility and trust. This formal recognition validates the organization’s compliance with regulatory requirements and positions it favorably for government funding or support from donors. Endorsements following Amuta document submissions can significantly bolster the organization’s capacity to achieve its mission, demonstrating to stakeholders that it is well-managed and financially sound. 

The financial report

        This is a report of all finances, including a balance sheet signed by two committee members, highlighting their direct involvement in the compliance process. The report must be prepared following the structure of accounting standard number 40. The structure is as follows: any association whose annual turnover is over 1,200,000 NIS must appoint an accountant, and even if an accountant is appointed for a turnover lower than 1,200,000 NIS, the report must be submitted. If an association has an annual turnover of less than 500,000 NIS, they are not required to submit a financial report; however, specific financial data will be detailed via the verbal report. 

The introduction

        Similarly to the financial report, two committee members must sign the verbal report, a crucial step that underscores their role in the compliance process. This process ensures the report is accurate and reliable, providing a thorough overview of all activities. The committee members should identify their names unless, in the scenario the committee members appointed to sign, submit the request using smart identification and digitally sign the form. Even if an association had no financial activity in a given year, it must submit a verbal report, ensuring comprehensive reporting of all activities. As previously stated, associations with an annual turnover of less than 500,000 NIS should be detailed in the verbal report instead of submitting a financial report. 

List of donors

        Amutot is also responsible for reporting donors, specifically any that exceed 100,000 NIS in aggregate or 50,000 NIS per year. This transparent process ensures that all significant donors are accounted for. Suppose a donor/s contributes to twenty percent of an association’s annual turnover. In that case, it will be clarified that the non-profit organization must maintain an internal record of donors who have made a cumulative donation of 20,000 NIS per year. After printing the donor list form, any donor’s names requested as confidential will not be included, maintaining the transparency of the process. Finally, the five recipients with the highest salaries must be included in the list of donors.

Contribution from a foreign political entity

        Any contribution from a foreign country or on behalf of a body under its control means any donation received outside Israel’s borders does not fall under this section. For Amuta, whose financial turnover exceeds 300,00 NIS, the verbal report will detail any contributions from a foreign entity. There are specific identifications that go along with the listing of a foreign contribution. They are as follows: name of the donor, amount of donation, the purpose of the donation, the conditions of the donation, and if applicable, any additional comments given to the Amuta when receiving the donation (whether oral, in writing, directly or indirectly). An Amuta must be reported in the online system if it has received any donations. 

Internal auditor

        In a specific situation where an association exceeds 10,000,000 NIS, the association has to appoint an internal auditor. In addition to this action, Amuta must submit a protocol for appointing its respective internal auditor. This action is done regardless of the turnover that year. This protocol must be attached to the document attachment screen on the operations website. The protocol also must be signed by two committee members.

Recommendations of an audit committee or auditing body regarding the financial report and the verbal report

        Any recommendations for an audit must be filed and uploaded to the website as an attachment to the application. This document must explicitly state whether the committee does or does not recommend the general meeting and auditing body. All audit committee recommendations must be signed by at least one other audit committee member in which the member identifies themselves by stating their name. If an Amuta still needs to submit a financial report, see the reasons for not submitting a financial report above. The audit committee must review the economic data in detail in the verbal report. 

Additional documents and reports that are required to be submitted 

        The additional documents and reports must be submitted at least two weeks from the day of the decision or the day of the event. These include: Notice of change of name of an association, Notice of election or appointment of a committee member, notice of the end of the term of office of a committee member, member of the audit committee, member of the auditing body, and the accountant who audits the financial statements must complete a notice of election or appointment of an official. Notice the appointment of a board, an audit committee, an auditor, an accountant, and a notice form for filing a lawsuit.

This article was written with the help of paralegal Asher Force.

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