The bookkeeping supervision department at Tel Aviv's Tax Authority recently carried out an inspection operation focused on nonprofits in the cities of Tel Aviv, Ramat Gan, and Bnei Brak.
During the course of the operation, 38 visits were conducted at yeshivas, seminaries, and associations in the fields of welfare and health.
In seven of the 38 locations visited, it was found that not all income had been reported, and that there had been two violations of the Cash Law, to the tune of 121,770 NIS in total.
At one Bnei Brak association, which runs a preschool, it was found that 72,000 NIS, paid by parents by check or in cash, was not reported at all. It was also found during the visit that the association had closed at the end of 2021, but that its administrator continued operating the preschool as a small business. When asked why he did not write down the payments from the parents, the director said he had not yet gotten around to it.
In a Bnei Brak yeshiva, donations by check and bank transfer totaling 77,400 NIS were not written down at all, and receipts were not issued. When asked why this was so, a representative for the organization said, "Many people do not want a receipt. I end up with a lot of papers and receipts piled up, and people don't want them."
An association in Ramat Gan which runs a seminary had three checks totaling 2,055 NIS each which had not been reported or written down. These payments were intended to cover the cost of the afternoon program. When asked, a representative of the association said, "We had a crazy month because of coronavirus, so I didn't deal with much of the documentation."
When inspectors arrived at another association in Ramat Gan, they were met by an attorney who said he shares an office with the association, and that its representatives are only in the office during the evening. The inspectors therefore examined the attorney, and found that a sum total of 27,300 NIS had not been documented in the books or any other way. The attorney claimed that he had not noticed the oversight.