Wiz founders donated 1% stake to charity, now worth $320 million
The stake, pledged by Assaf Rappaport and Yinon Costica through the Merit Spread Foundation, could generate close to NIS 1 billion in funding for social causes after the Google deal closes.
The giant deal to sell Israeli cybersecurity company Wiz to Google is continuing to resonate far beyond the technology sector.
The company’s founders, Assaf Rappaport and Yinon Costica, have pledged 1% of Wiz’s shares for future donations through the Merit Spread Foundation, which has served, among other roles, as a central operational platform for the activities of the Hostages and Missing Families Forum since the October 7 attack.
The value of the donation, at the time of the expected realization, is estimated at approximately $320 million, close to NIS 1 billion. The deal to sell Wiz to Google, announced in March 2025, is valued at a record $32 billion.
According to the foundation’s 2024 financial report, Rappaport and Costica joined the foundation as part of their philanthropic activities and transferred 1% of Wiz shares to it. The foundation serves as a platform that enables donations in the form of company shares.
However, in the foundation’s financial statements the donation was recorded at its historical value, the value at the time the shares were transferred, NIS 520 million, rather than at the expected value upon the completion of the acquisition.
Once the sale proceeds are received in cash, the plan is to invest the funds for the long term, with the investment returns directed on an ongoing basis to support various social projects, in coordination with Wiz’s founders.
The foundation also played a significant operational role in supporting the Hostages and Missing Families Forum immediately after the October 7 attack and the outbreak of the war.
At the beginning of the conflict, the forum had not yet received approval under Section 46 of the Income Tax Ordinance, which allows donors to receive tax credits for charitable contributions. As a result, the forum relied in part on the organizational infrastructure of the Merit Spread Foundation to raise donations from the public.
Through this framework, extensive activities were funded on behalf of the hostages and their families. These included financing international advocacy missions, media campaigns, and direct assistance to families.
According to the foundation’s financial statements, expenses for “activities aimed at securing the return of the hostages and assisting their families” amounted to NIS 35.8 million in 2024, in addition to NIS 33.2 million spent in 2023.
In addition, the foundation spent NIS 14.4 million in 2024 on “support activities for victims of the Swords of Iron war,” following NIS 9.3 million spent in this category in 2023.
The Merit Spread Foundation was established as a public benefit company in December 2021.
As of 2024, the foundation employs 14 staff members and has eight board members. In its early years, activity was relatively limited, but it expanded significantly during 2023, after the organization received approval for tax-deductible donations under Section 46.
The foundation’s founder and CEO is Alon Tal, owner and CEO of Alpha Investment Group, which operates family office services, investment funds, and ventures in the biotech and fintech sectors.
In May 2024, the Israel Tax Authority published a decision stating that donors who contribute shares to recognized nonprofit organizations will be exempt from capital gains tax on the donation, while also being eligible for a tax credit of up to 35% of the value of the shares, subject to approval under Section 46.
According to fundraising professionals, this policy significantly increased the attractiveness of donating shares and has made such contributions increasingly popular among entrepreneurs and investors.
