Well, you could be right. But my understanding is that in keeping with the broad wording of the 1977 "anti-proselytizing law," the giving of money (amount unspecified) or of any equivalent of money (again, unspecified) or any other benefit to a person (age unspecified), for the purpose of inducing conversion to another religion is punishable by a large fine or by several years imprisonment.
Under this broadly worded statute, the giving of a 2-page tract to any person could qualify as an offense, as could the feeding, clothing and sheltering of indigent persons -- a Christian practice common in Israel.
I looked in vain for a searchable Israeli statute site, so I can't produce the actual text of the law. Perhaps you can find one.
Here is a US Department of State article that generally explores this subject.
I don't know the background for sure, but I've been told it sprung from an attempt to "purchase" converts to Islam. In Israel religious schools are state funded and some social programs are demonination based, so an increase in Muslims, for example, would likely result in an increase in state funding to their institutions. Whether that was the reason, I don't know. There was also an anti-proselytization law introduced in the late 90s which went nowhere. Some people confuse the two.