I am in agreement with those who say that a charitable organization that supports terror or otherwise clearly violates charitable giving laws on an ongoing basis should lose its tax-exempt status.
The efforts in two countries show the contrast between Canada, where a pro-Israel charity recently lost its tax-exempt status over activities it discontinued long ago, and an American legislator’s efforts to shut down charities that support terror organizations overseas and incite violence here in the United States.
In Canada, tax officials revoked the tax-exempt status of the Jewish National Fund Canada. This decision was influenced by repeated complaints to the Canada Revenue Agency (the country’s equivalent of America’s Internal Revenue Service) from anti-Israel activist groups, such as Independent Jewish Voices Canada, and a CRA audit that found JNF’s past activities did not align with the requirements for charitable status.
Among the activities alleged to have been conducted in violation of Canadian law was that JNF Canada used charitable donations to fund projects for the Israel Defense Forces, including those located on army, air and naval bases. For instance, JNF Canada’s “Project Opportunities” referred to an “outdoor fitness area at a Gadna military base” and at Bat Galim Naval Base by “helping to facilitate the upgrade of the existing auditorium for soldier intake, training and conferences.” Canadian tax rules prohibit supporting the armed forces of another country. Those projects were discontinued following a CRA audit.
In addition to claims about support for the IDF, complaints alleged that JNF Canada violated CRA regulations when it contributed to projects in Judea and Samaria, as well as projects such as “Canada Park,” which was created on the site of abandoned Palestinian villages. Interestingly, the revocation did not take into account that the organization discontinued those military-related activities when called upon by the CRA, and the notice of revocation did not set forth the basis for the revocation.
JNF Canada is currently contesting the CRA’s decision in court, arguing that the revocation was unjust and biased because its activities had received de facto approval over the years.
One “anti-Zionist” group is gloating. Independent Jewish Voices Canada, which filed at least four complaints against JNF Canada, called this a “long overdue decision” from the CRA to revoke JNF’s charitable status. They were “thrilled to have contributed with our allies to this major blow to Canada’s illegal Zionist charities,” said the organization in a press release.
Like Canada, American tax laws do prohibit donations to foreign armies. Under the Internal Revenue Code, only U.S. charities are eligible to receive tax-deductible charitable contributions from individual U.S. taxpayers. Additionally, strict regulations and counterterrorism measures are in place to prevent funds from being used to support terrorist activities or foreign military operations. Think sanctions against overseas terror fronts.
As of now, the United States has not officially stripped the tax-exempt status from any Israel-related charitable organizations. However, there have been calls from some U.S. lawmakers to review and potentially revoke the tax-exempt status of certain charities that support Israeli settlements in the West Bank and eastern Jerusalem.
To counter IRS regulations regarding donations to foreign entities, a plethora of “American friend” organizations have been created over the years. They serve as a “kosher” conduit of funds to Israeli nonprofits.
But one U.S. congressman, Rep. Jason Smith (R-Mo.) seems to have had his fill of American charities that have supported and incited violent activities on American college campuses and in U.S. cities and towns.
Smith, as chairman of the House Ways and Means Committee, in a series of letters to the Internal Revenue Service has asked the IRS to investigate several American charities with an eye towards revoking their tax-exempt 501(c)(3) status.
On Sept. 24, he sent eight letters to IRS Commissioner Daniel Werfel, alleging that tax-exempt charities have “engaged in conduct that includes inciting riots and violence, supporting illegal activity, and conducting other activity contrary to the public good.” Further, he alleges that these erstwhile charities “also hold[s] suspected ties to designated terrorist organizations despite holding tax-exempt status as a nonprofit organization.”
According to Smith, the activities of these organizations are “to sow chaos and discord in our society, has involved illegal activities, and certainly is not in furtherance of any tax-exempt purpose.”
The charities are:
- Americans for Justice in Palestine Education Foundation and American Muslims for Palestine, which fiscally sponsor Students for Justice in Palestine.
- Alliance for Global Justice fiscally supports Samidoun, the Palestinian Prisoner Solidarity Network “working to build solidarity with Palestinian prisoners in their struggle for freedom.”
- Islamic Relief USA and its affiliated organization, Islamic World Relief, which appear to provide support for a designated terrorist organization: Hamas.
- Jewish Voice for Peace, which fomented protests and encampments on college campuses that turned violent.
- The People’s Forum, which “has engaged in conduct directly intended to incite riots, cause chaos, and disrupt education on college and university campuses and beyond.”
- Tides Foundation, in conjunction with Adalah Justice Project and the Arab Resource Center.
- United Hands Relief, Inc., also known as Bait Alhair, which is alleged to have “engaged in conduct that suggests numerous connections to designated terrorist organizations and raises concerns about possible financing of terrorist groups abroad.”
- Westchester Peace Action Committee foundation which fiscally sponsors National Students for Justice in Palestine, Within Our Lifetime, the U.S. Palestinian Community Network and the Palestinian Youth Movement.
It remains to be seen what the IRS will do in response to Smith’s efforts. The fact remains that there have been terror-supporting organizations operating in the United States, such as Palestinian Islamic Jihad terror supporter Sami Al-Arian’s World Islamic Studies Enterprise at the University of South Florida and the Hamas-supporting Holy Land Foundation. Both were shut down by American government efforts.
The latest bunch operating in the United States pose a more serious problem as they incite violence and anti-Jewish hatred on America’s university campuses and in the streets of American cities. The sooner the IRS takes a stand on these “charities” the better off we’ll all be.