Financial Statements and the Executive Board<\/h4>\n

The Israeli NGO\u2019s Executive Board is responsible for preparing the Israeli NGO\u2019s financial statements. Every Israeli NGO is required to prepare and submit financial statements no matter how small or large its financial turnover.\u00a0 While preparation of the Israeli NGO\u2019s financial statements may be outsourced, the Executive Board is still responsible for ensuring that the report is prepared properly and in accordance with legal regulations.<\/p>\n

General Information about What to Include in the Financial Statements<\/h4>\n

The financial statements must <\/em>include a balance sheet and an account of the Israeli NGO\u2019s income and expenses.\u00a0 This means that detailed accounts of payments made and received by the Israeli NGO must be provided.\u00a0 This includes details about loans, securities, retirement conditions and other benefits for the five highest salary earners in the Israeli NGO.\u00a0 The five highest salary earners can include non-salaried individuals who are giving services for compensation to the Israeli NGO as contractors.\u00a0 Additionally, when detailing the breakdown in expenses, the Israeli NGO must distinguish between expenses for activities and expenses toward general and administrative work.<\/p>\n

The Parts of the Financial Statement<\/h4>\n

The financial statement of all Israeli NGOs must include the following:<\/p>\n

1) Balance sheet – This must detail all the assets and liabilities in categories and based on their liquidity level. The three types of net assets should be listed and differentiated: a) net assets that are not restricted for particular uses, b) net assets that have temporary restrictions and c) net assets that are permanently restricted (i.e., donated to the Israeli NGO on the condition that they are only used for a particular purpose).
\n2) Activity report – This includes income and expenses over the period of the report.
\n3) Report on changes in net assets – This will show changes during the period that is being accounted for, including a surplus of income over expenses.
\n4) Cash flow report – This report details the cash flow.
\n5) Notes to financial statements – All notes recorded must abide by the following formats: Opinions of the Institute of Certified Public Accountants and Standards of the Proper Accounting Standards Institute.\u00a0 Among other things, the notes most reference the Israeli NGO\u2019s objectives, loans given or received, and dependence on particular bodies or government ministries.<\/p>\n

Contact Us<\/h4>\n

If you are interested in starting a non-governmental organization (whether an amutah<\/em> or cheletz<\/em>) in Israel, in ensuring that you are managing it according to updated laws and regulations or have any questions regarding your Israeli NGO\u2019s financial statements, please contact us.<\/p>\n

Advocate Joshua Pex specializes in Israeli NGO law and would be happy to discuss the needs of your NGO with you.<\/p>\n

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

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Every Israeli NGO is required to submit financial statements on money received and NGO expenses.\u00a0 This short article gives you a brief introduction into what Israeli NGO financial statements include. This Series of Posts Our law firm practice Israeli NGO law among our various specializations.\u00a0 This short article is one in a long series focusing…<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[185],"tags":[],"class_list":["post-8882","post","type-post","status-publish","format-standard","hentry","category-non-profit-organizations-en"],"acf":[],"yoast_head":"\n