Wiz Founders’ $320 Million Donation Supports Hostage Relief and War Victims

The sale of Israeli cybersecurity company Wiz to Google, valued at a record $32 billion announced in March 2025, continues to have a significant impact beyond the technology sector. Founders Assaf Rappaport and Yinon Costica have pledged 1% of Wiz’s shares – estimated at approximately $320 million, or close to NIS 1 billion – for future donations through the Merit Spread Foundation.

Merit Spread Foundation’s Role in Supporting Hostage Families

The Merit Spread Foundation served as a central operational platform for the Hostages and Missing Families Forum in the wake of the October 7th attack. Initially, the forum hadn’t secured approval under Section 46 of the Income Tax Ordinance, which grants tax credits for charitable donations. The foundation provided crucial organizational infrastructure to facilitate public donations.

These funds were used to finance international advocacy efforts, media campaigns, and direct assistance to the families of hostages. In 2024, expenses related to “activities aimed at securing the return of the hostages and assisting their families” totaled NIS 35.8 million, building on NIS 33.2 million spent in 2023.

Support for Victims of the Swords of Iron War

Beyond hostage support, the foundation also allocated resources to aid those affected by the broader conflict. In 2024, NIS 14.4 million was spent on “support activities for victims of the Swords of Iron war,” following NIS 9.3 million in 2023.

Foundation Details and Financial Structure

Established as a public benefit company in December 2021, the Merit Spread Foundation has expanded significantly since receiving approval for tax-deductible donations under Section 46. As of 2024, the foundation employs 14 staff members and is governed by an eight-member board. Alon Tal, owner and CEO of Alpha Investment Group, serves as the foundation’s founder, and CEO.

While the initial donation of Wiz shares was recorded at their historical value (NIS 520 million) in the foundation’s 2024 financial report, the plan is to invest the proceeds from the Google acquisition long-term. Investment returns will then be directed towards supporting various social projects in coordination with Wiz’s founders.

Modern Tax Regulations Encourage Share Donations

In May 2024, the Israel Tax Authority announced that donors contributing shares to recognized nonprofit organizations would be exempt from capital gains tax and eligible for a tax credit of up to 35% of the share’s value, pending Section 46 approval. This policy change has increased the appeal of donating shares among entrepreneurs and investors.

Source: Calcalistech