Israel's Registrar of Associations Seeks Dissolution of Charity Over Mismanagement
Israel's Registrar of Associations has requested the Central District Court to dissolve the "Chomat Tzion" charity, based in Petah Tikva. The organization is officially designated to manage religious educational institutions but is accused of funneling hundreds of thousands of shekels to the founder's children and being mired in deep internal disputes. The charity's stated purpose is to operate a range of religious schools and study halls.
The Registrar of Associations has been in contact with Chomat Tzion since 2021, demanding explanations for discrepancies in its financial reports from 2013 and 2014, which were submitted significantly late. The charity claimed that subsequent reports were filed by an internal party acting against it. It failed to submit revised reports for 2014-2016 and has not submitted any reports since.
According to reports from 2023-2024, the charity, founded by the late David Levy, pays salaries to his sons Ephraim and Pinchas Levy, while another son, Eliyahu Levy, serves on the board. The reports indicate the charity is not fulfilling its stated objectives, lacking details on payments to rabbis and teachers or expenses like utilities and food. Instead, it reported rental income of 420,000 shekels, suggesting it is leasing out the building intended for its educational activities.
Concerns about assets being diverted to private hands were raised by the reports, which showed Chomat Tzion received donations totaling 230,000 shekels in 2023 and 209,000 shekels in 2024, with a significant majority coming from abroad. Pinchas Levy received 86,000 shekels in 2023 and 90,000 shekels in 2024 as "fundraiser," constituting a large percentage of the total donations, while Ephraim Levy received a small monthly salary. In 2023, a court-appointed attorney examined the charity and found it was not operating according to its goals and intended to lease its building until 2034. He cited a 2021 court ruling stating the charity seemed to dedicate most of its time and resources to internal disputes over control.
The Registrar sent Chomat Tzion the findings of an inspection report in January, highlighting the failure to provide documents and contradictions in those submitted, attributed to the ongoing internal legal battles. The Registrar noted additional allegations of charity assets being "smuggled" into private hands, which could not be verified due to a lack of agreed-upon reporting. The report concluded that the charity appears to dedicate most of its resources to managing internal conflicts while continuing to solicit public funds.
The Registrar is seeking dissolution because the charity is not advancing its registered goals, failing to submit annual reports, not cooperating with oversight, preventing monitoring, and due to concerns about funds potentially leaking to private individuals. The request was filed by attorney Bat-Sheva Cohen.
