Every shekel, every cancellation: Israel's 2026 §46 donation reporting cliff.
From 1 January 2026, every Israeli charity holding §46 authorization (the Income Tax Ordinance clause that lets a donor claim a 35% tax credit on a gift) must report every donation, and every donation cancellation, to the Tax Authority's new "Israel Donations" digital system in real time, with the donor's national ID attached. Connection to the system is now a precondition for granting and renewing §46 status itself — meaning the long tail of synagogues, neighbourhood welfare associations and school-affiliated funds that still run on paper receipts and legacy desktop bookkeeping needs new software, a Morsheh-Al (super-authorized representative) appointment, a lawyer's board-resolution certificate, and a donor-ID capture redesign on every channel by the deadline.
01The pain
On 1 January 2026, every Israeli charity holding §46 status (the Income Tax Ordinance clause that lets a donor claim a 35% tax credit on a gift) woke up to a new rule: every donation, and every donation cancellation, must be reported to the Tax Authority's new "Israel Donations" digital system in real time, with the donor's national ID attached.1,2
Each of Israel's roughly 9,000 §46-authorized institutions must designate a Morsheh-Al (a "super-authorized representative" with personal liability for the filings), obtain a lawyer's certification of the board resolution that names them, and either upgrade receipts and bookkeeping software to interface with the Tax Authority's API or fall back to manual entry through a dedicated portal. Connection to the system is now a precondition for granting and renewing §46 status itself.2
The Tax Authority's stated motive is twofold: close the NIS 1.6 billion gap between potential and actually-claimed donation tax credits (only NIS 0.9bn of NIS 2.5bn gets claimed each year) and stamp out fake-receipt and inflated-donation fraud. The pain lands hardest on the long tail of small-to-mid charities, synagogues and neighbourhood welfare associations still issuing paper receipts. As one Israeli accounting professional told Calcalist in early 2026, the requirement is "a real existential threat to fundraising ability."3
Further reading
- 1 Malam Payroll Plus — Hebrew sector explainer on the 1 January 2026 §46 mandate, the Israel Donations system, and the precondition tie to §46 status: malam-payroll.com
- 3 Calcalist — Hebrew business-press coverage with the NIS 1.6bn credit-gap framing and the on-record "existential threat to fundraising ability" quote: calcalist.co.il
- 2 HGJ legal-services blog — Hebrew operational walkthrough of the Morsheh-Al appointment, lawyer's board-resolution certificate, and software-vs-portal options: hgj.co.il
02Who solves this today
Vendors that publicly market accounting, donation-receipts or nonprofit-management software for Israeli §46-authorized institutions on their own homepages — the route a synagogue treasurer or a neighbourhood-association bookkeeper actually takes when 1 January 2026 turns the donation ledger into a real-time API call. Each was checked live on the date of writing.
Listed providers publicly market accounting, invoicing or nonprofit-management software to Israeli §46-authorized institutions on their own homepages. Inclusion is not endorsement. Adjacent vendors checked and dropped at the date of writing: Riskonnect (riskonnect.com — HTTP 200, but markets enterprise risk-management and claims-administration software, not Israeli nonprofit accounting; off-niche, dropped); Malam-Team (malam-team.com — connection refused at fetch time, dropped pending re-check); Malam Payroll Plus (malam-payroll.com — HTTP 200, but the public homepage markets general HR/payroll across sectors with no §46/donation-receipts product line surfaced, dropped); Donorbox (donorbox.org — HTTP 200, generic global donation platform without Israel-specific §46 reporting integration on the public homepage, dropped); iCount (icount.co.il — HTTP 403 anti-bot block at fetch time, dropped pending re-check); Rivhit (rivhit.co.il — HTTP 200, accounting suite with a "ריווחית מכללות" colleges product line surfaced but no §46/donation-receipts product surfaced on the public homepage, dropped). Onboarding-lawyer practices that issue Morsheh-Al board-resolution certificates exist but are listed as service providers in the wedge framing rather than as software-solution cards on this page.
Report a mistake — or suggest a new solution
Spot a wrong number, dead source link, missing aspect, broken translation? Or know a vendor we should list as a solution? Tell us. The Director re-checks every report and either updates the page or writes back with a reason.
Got it — thank you.
The Director will look at your report on the next research cycle. If you left an email you'll hear back when we either update the page or decide it's not actionable (with a one-paragraph reason).
Listed companies — manage your entry. If you are one of the providers above and anything here is wrong, missing, or out of date — or you'd rather not be listed — write to us. Removal within 24 hours; corrections within 7 business days. We do not contact listed companies first; we publish what your own public marketing claims and respond when you reach out. Email contact@aikraft.com.