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{"id":8748,"date":"2017-10-18T08:23:51","date_gmt":"2017-10-18T08:23:51","guid":{"rendered":"https:\/\/temp.lawoffice.org.il\/?p=8748"},"modified":"2023-03-22T18:01:49","modified_gmt":"2023-03-22T16:01:49","slug":"regulations-using-israeli-nonprofit-assets","status":"publish","type":"post","link":"https:\/\/lawfirmbackup_200125.k1uagm.ap-southeast-2.wpstaqhosting.com\/en\/regulations-using-israeli-nonprofit-assets\/","title":{"rendered":"Regulations and Israeli Nonprofit Assets"},"content":{"rendered":"

Rules and regulations for Israeli not for profit organizations or Israeli NGOs (amuta <\/em>or amutot<\/em>) clearly state that all nonprofit\u00a0assets (i.e., funds, equipment, etc.) must be used to promote the objectives of the registered Israeli amuta<\/em>.<\/p>\n

This Series of Posts<\/h4>\n

Our law office has experience in Israeli not for profit law and Israeli NGO law.\u00a0 This short article is one in a longer series discussing some important aspects about the proper functioning of Israeli not for profit organizations (amuta <\/em>in singular and amutot <\/em>in plural).<\/p>\n

For more information on the Israeli Corporations Authority which oversees Israeli not for profit organizations, see the government website<\/a>.\u00a0 For more articles from an Israeli lawyer and legal advice for Israeli not for profit organizations related to the topic of this article, see our articles about the Israeli Corporations Authority<\/a>, reimbursements <\/a>and the\u00a0amuta’s<\/em> name, logo and objectives<\/a>.<\/p>\n

Funds Designated for a Particular Purpose<\/h4>\n

\"nonprofit<\/p>\n

Every recognized Israeli not for profit organization has a registered name, by-laws and objectives.\u00a0 Any and all funds given to the organization must be used to support these objectives.\u00a0 If a donor designates funds to promote a particular objective, the Israeli not for profit organization or Israeli NGO must use the funds for that particular purpose.\u00a0 Funds designated for a particular objective may not be used for other objectives, even if the other objectives are also the objectives of the Israeli not for profit organization.\u00a0 Even if an Israeli not for profit organization changes its objectives with the Registrar of Amutot<\/em>, funds that were designated for the not for profit organization\u2019s previous objectives need to be used for the purposes and objectives they were originally specified for.<\/p>\n

Inactivity in the Israeli Not for Profit Organization<\/h4>\n

In the event that an Israeli not for profit organization or Israeli NGO is not active, it cannot receive a certificate of proper management<\/a>, and the Registrar of Amutot <\/em>may consider liquidating the organization<\/a>.\u00a0 This is because an organization or corporation is considered a legal entity with financial activity, so if there is no financial activity, there is no purpose in it existing as an organization or corporation.<\/p>\n

Prohibitions on Accumulating Nonprofit Assets<\/h4>\n

An Israeli not for profit organization or Israeli NGO that accumulates its nonprofit assets for a long period without using them to further the not for profit organization\u2019s objectives will not be able to obtain a certificate of proper management.\u00a0 The not for profit organization is entrusted with the good faith of its donors to use its funds to promote the organization\u2019s objectives and, as a result, accumulated assets must be used.\u00a0 The not for profit organization may however accumulate assets to maintain its activities, to save money for future investment in a project, to buy real estate for the office or operations, or to set aside funds in the event of an economic downturn.<\/p>\n

If assets are given to an Israeli not for profit organization or Israeli NGO as capital, funds may be held without using them, although the not for profit organization will need to determine if such an asset is an endowment <\/a>and the not for profit organization the trustee.\u00a0 In this event, the endowment must be registered with the Registrar of Endowments.<\/p>\n

Contact Us<\/h4>\n

If you have any questions or concerns about your Israeli not for profit organization as it relates to the accumulation of assets or any other rules and regulations of Israeli not for profit organization laws, feel free to contact us.<\/p>\n

One of our partners, Advocate Joshua Pex, specializes in Israeli not for profit and Israeli NGO laws, and he would be happy to assist you and your organization.<\/p>\n

[author_and_contact_info]\u00a0<\/strong><\/p>\n

\n","protected":false},"excerpt":{"rendered":"

Rules and regulations for Israeli not for profit organizations or Israeli NGOs (amuta or amutot) clearly state that all nonprofit\u00a0assets (i.e., funds, equipment, etc.) must be used to promote the objectives of the registered Israeli amuta. 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