Nature of the service
Application for obtaining a Certificate of Orderly Management for the year 2018
Applicable Provisions of the Law
Pursuant to the provisions under the Amutot Law, it is required to submit the financial statements, literal report and ancillary documents, as aforesaid, by June 30th of the year following the statements’ year.
Therefore, for obtaining a Certificate of Orderly Management for the year 2018, you shall be required to submit all of the documents (financial statements, literal report and ancillary documents) for the year 2016 by 30.6.2017.
Documents sent by fax shall not be handled.
An association that fails to submit documents in full and in accordance with the Amutot Law by such date shall be found to be in violation of the Amutot Law.
An exception of that stated is an association the financial statements of which are audited by an accountant, and the delay in submitting the documents is pursuant to a general arrangement drawn between representatives on behalf of the Institute of Certified Public Accountants in Israel and the Registrar of Associations.
The Required Documents and Instructions
Pursuant to the Amutot Regulations (Forms) - 2009, it is required to submit all reports to the Registrar of Associations via on-line forms (excluding financial statements and literal reports that may be submitted in a different format as well). After completing the forms, such are to be printed, signed and submitted to the Registrar.
- Application for a Certificate of Orderly Management for the year 2018
- Financial statements for the year 2016
Financial statements (including balance sheets) signed with the original signatures of two of the council members noting their names. Please note, an association the annual turnover of which exceeds NIS 1,200,000, is required to appoint an accountant. The accountant shall draw the financial statements pursuant to manifesto 69 and standard 5.
- The list of contributions the annual sum of which from a single contributor exceeds NIS 20,000 specifying the names of the contributors for the year 2016 - it shall be required to state within the financial statements the list of contribution as aforementioned. Such may also be attached as an appendix to the financial statements.Should the association specify contributors as aforementioned as part of the literal report, it is not required to submit an additional list.
- Report on contributions made by a foreign country entity
An association whose financial turnover exceeds NIS 300,000 shall be required to note in its financial statements whether or not it had received contributions from a foreign country entity the accumulating value of which exceeds NIS 20,000. Should the association note the aforesaid on the appropriate place on the literal report, such may be deemed as complying with the duty.
Additionally, in the event where the association had received such contributions, it shall be required to submit quarterly statements. An online form may be found on the website.
Clarification: Contributions made by a foreign country entity does not mean any contribution received from abroad, but rather a contribution made by a foreign country or an entity under its control etc., pursuant to the definitions under law.
- Literal report for the year 2016
The literal report shall be signed with the original signatures of two of the council members noting their names. The association shall be required to submit the literal report even in the event where it had no financial activity during these years, and refer to the non-financial activity it had carried out.
Please note, the literal report is to include the information concerning all of the office holders at the association, including all of the council members, authorized signatories, all of the members of the audit committee or auditing entity, the accountant auditing the statements and the inside auditor should such have been appointed for the association.
Further note, the literal report form is an optional form; however it is recommended to fill the version posted on the website.
- Protocol of the general meeting approving the financial statements and literal reports for the year 2016
The protocol shall be signed with the original signatures of two of the council members noting their names.
It is required to attach to the protocol a reporting form concerning the general meeting’s resolutions.
- Recommendations of the audit committee/auditing entity for the year 2016
The recommendations are to be signed by at least one member of the audit committee/auditing entity noting the names of the signatories. As part of the recommendations given by the audit committee/ auditing entity it shall be required to state whether they recommend/ not recommend to the general meeting on approving the financial statements and literal reports. The recommendations are to be submitted on an online form.
- Five persons on the payroll receiving the highest wages (including scholarships, supports, remunerations, professional fees, etc.) for the year 2016
Pursuant to that specified in form 9 under the Amutot Regulations (Forms), 5769 - 2009, it is required to state the sum of payment to each of the five persons on the payroll receiving the highest wages in the association for the financial statements year. The form is to be submitted in accordance to that specified in section 36(b) under the Amutot Law, 5740-1980. An online form may be found on the website.
An association the financial turnover of which for the year 2016 had exceeded NIS 10 million, shall be required to submit the protocol appointing an inside auditor, in the event where no such protocol had been submitted in the past.
Please note, the inside auditor may not be the accountant drawing the financial statements (in the event where one had been appointed) or the auditing entity (in the event where such had been appointed instead of an audit committee).
- Notification on filling a claim
In the event where claims had been filed against the association or against an office holder in the association (council member/ audit Committee member, etc.) by virtue of his capacity as an office holder in the association. The notification may be found as an online form.
Should there be no such claims, it is required to provide a statement in respect of this fact signed by two of the council members.
Guideline pages for an association -
Free of charge
For the avoidance of doubt, the association shall be required to meet payment of annual fees for the year 2016 and previous years where such had not been paid. Should the association be eligible for an exemption from paying annual fees, it shall be required to submit a proper affidavit to the Postal Bank.
Options for obtaining the service
The Israeli Corporations Authority - the Registrar of Associations Unit, 39 Yirmiyahu St. Jerusalem 9446722 POBox 34071, Jerusalem 9134001.
39 Yirmiyahu St. Jerusalem - Habira Towers, Building 1, 10th floor.
Sunday, Monday, Wednesday, Thursday - between 8:30 - 12:30 Tuesday - deposit of documents only in the box (on the building’s entrance floor).
Up to 60 business days, where all documents had been submitted to the Registrar properly.
- Should the association/ public benefit company wish to obtain a Certificate of Orderly Management, it shall be required to operate pursuant to the guidelines. Date of submitting documents is by June 30th of the year following the financial statements’ year. Associations included in the extensions arrangement agreed vis-à-vis the Institute of Certified Public Accountants in Israel, shall be entitled to submit the documents on a later date in accordance with the arrangement.
- In the event where severe flaws had been found in the conduct of the association/public benefit company, or in the event where the association or public benefit company had not cooperated as required as part of an inspection or audit on behalf of the Registrar, or as part of a process for repairing flaws, and consequently, pursuant to the undertaking of the association or public benefit company or operations it had carried out pursuant to the Registrar’s requirements, it had been decided to grant the association or public benefit company a Certificate of Orderly Management, the confirmation shall be granted in special wording, per the decision of the responsible entity on behalf of the Registrar.
- A Certificate of Orderly Management means that the professional entity on behalf of the Registrar has examined the current documents submitted by the association or public benefit company, and has found that such had been submitted correctly. Should findings be discovered according to which the association or the public benefit company operate in violation of the provisions under law, the professional entity on behalf of the Registrar shall consider refraining from granting a Certificate of Orderly Management for the subsequent year or revoking a confirmation that had been granted, inter alia in light of the severity of the findings and the extent of the association’s or public benefit company’s cooperation in repairing such per the Registrar’s requirements.
- For frequently asked questions - click here