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Invoices Israel: Mandatory Reporting of Donations to the Israel Tax Authority

Updated today

According to the Israel Tax Authority’s new regulations, starting January 1, 2026, all public institutions (nonprofit organizations, public benefit companies, etc.) that hold a Section 46 certificate will be required to report all donations and donation cancellations through the Tax Authority’s digital donations system.

IsraelGives has integrated fully with the Tax Authority, and so if your organization is connected to our new receipts service, every receipt issued through our system will automatically be transmitted to the Tax Authority in accordance with the law.

Check if your organization is connected to the IsraelGives receipts system (and if not, connect):

  1. Log in to your IsraelGives account.​

  2. In the menu, select “Emailing and Receipts >> PDF e-receipts”

3. If your organization is connected, you’ll see a “Connected” status, and the connection validity date will appear.

4. If your organization is not connected, press the "connect” button. The system will redirect you to Gov.il.

If you are an authorized signatory for your amuta, once you log in to your account you’ll be directed to a page asking you to approve the connection to IsraelGives.

Once approved, the integration will be activated immediately.

If your organization has not yet registered with the Invoices Israel system, click here to begin the registration process (only steps 1 and 2 are mandatory).

Check out this short video tutorial explaining how to connect:

Please note that authorization is valid for three months only, and it must be renewed before it expires. We will send you a reminder each time your authorization period is about to end.

Reporting cancelled donations

An additional and lesser-known legal requirement is to report any cancelled donation (and its receipt) to the Tax Authority.

The cancellation must be made using a new document called a Credit Receipt, similar to a “Credit Invoice,” which includes the allocation number of the original donation being cancelled. When you cancel a donation through the IsraelGives system, we automatically issue a Credit Receipt and transmit it to the Tax Authority, fully compliant with the law.

Want to track the donations your organization reported?

Free Webinar

To help nonprofits prepare in advance and understand the implications of the upcoming change, the Corporations Authority Campus invites you to take part in a free open class on the topic:

“The Digital System for Donations – What You Need to Know and How to Prepare Properly.”

The open class will be held on three different dates and will be delivered by CPA Anat Glazer, Senior Manager (Computerized Auditing) from the Israel Tax Authority.

FAQ

What happens if we haven’t connected to the system before January 1, 2026, or if our authorization expires?

Thanks to a unique development by IsraelGives, if you receive a donation when you don't have a valid connection, we will issue the donor an email confirmation only (and not an official receipt), since issuing a receipt without reporting it to the Tax Authority is not permitted. However, we will store all donation details in a queue, and once you connect or renew your authorization, all pending receipts will automatically be issued and emailed to your donors, along with a short note explaining the delay.

Is every nonprofit required to report its receipts to the Tax Authority?

No. This requirement applies only to nonprofits with Section 46 approval.

How does this help donors?

If the donor provides their ID number when making a donation, the receipt will automatically appear in their Gov.il account, including the documentation needed for an income tax credit through their employer.

In the near future, this credit will be automatically reflected in the donor’s monthly payslip, with no need to submit receipts manually.

What if the organization doesn’t have the donor’s ID number?

You are still required to transmit every receipt, even if the donation was made without an ID number.

In all of IsraelGives' payment tools, there is an option for the donor to enter their ID number, but if they choose not to, the receipt will still be issued, and the donor will still be able to claim their tax credit by uploading the receipt to their personal Gov.il account.

Our organization uses a receipts system that isn’t connected to the Tax Authority. What should we do?

Every donation must be transmitted to the Tax Authority. If your current system cannot do this, it is recommended to switch systems. Alternatively, the Tax Authority offers a manual reporting tool where you can enter receipt details one by one - though the Authority notes that “this option is not recommended, as it is not automated and requires manual entry of each receipt.”

We received a donation via bank transfer, check, or cash - what should we do?

You can upload all of your donations into your IsraelGives account (through our CRM system) - even as a bulk import of up to 1 million donations - and we'll create the tax-receipt on those donations, and transmit them to the Tax Authority.

Does connecting to the new IsraelGives system cost money?

There is no setup or subscription fee. We charge only a fixed fee per issued receipt, with no additional costs for using the new system.

How can donors claim their tax credit for donations reported in the digital system?

Self-employed donors: Through their annual tax return. All donations reported in the digital system will appear automatically; the donor can simply check which ones they wish to claim. For manual returns, attach the annual donations summary (no need to attach individual receipts).

Salaried employees: Through the online Tax Coordination system, where all donations from the current year will be listed. The employee can select the donations for which they wish to claim a tax credit - no need to upload receipts.

Government employees: They can already receive the tax credit directly via their payslip, once they authorize their employer to apply the deduction. The Tax Authority is working to expand this option to all salaried employees in Israel.

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