Well-known non-profit at risk of closure: suspicion of fraud and prohibited distribution of funds

The Registrar of Non-Profit Organizations at the Ministry of Justice has filed a request with the Haifa District Court for a liquidation order against the Atid Association - Jadeidi-Makr. The request was submitted through the Enforcement and Control Unit of the Corporations Authority. Founded in 2012, the association was established with the goal of eradicating violence in Jadeidi-Makr by promoting sports and competition among local teenagers and youth.

The request for liquidation follows an inspection conducted by the Intelligence and Investigations Division of the Corporations Authority, which uncovered significant deficiencies that constitute grounds for closure under the Associations Law. These include suspicions of illegal use of funds, prohibited profit distribution, the failure of the association's governing bodies to function, and a lack of cooperation with the Registrar, including the failure to submit mandatory reports.

Inspection findings raised concerns that the association collected double payments from parents for children's participation in sports training camps. It was further discovered that expenses totaling 114,100 NIS were transferred in cash via a local money changer to an overseas destination, with the association failing to provide any documentation to verify the use of these funds or the actual occurrence of the training camp.

Furthermore, the investigation revealed that the association’s institutions are non-functional, and a committee member described as the "driving force" of the organization has been abroad for over six months. The failure to submit reports and the lack of cooperation prevent the Registrar from effectively supervising the association, reinforcing concerns regarding its compliance with the law. Consequently, the Registrar has moved to seek a court-ordered liquidation.