Canada has revoked the charitable status of two Jewish nonprofits that direct donations to Israel, including the Jewish National Fund.
The Canada Revenue Agency (CRA) announced the revocations of JNF and the Ne’eman Foundation on Sunday, as detailed in notices posted in the Canada Gazette. The CRA did not provide specific reasons for the revocations, but JNF revealed two weeks ago that it was facing this action due to concerns that its mission did not align with Canadian laws on charitable activities. JNF has not released the CRA document explaining the revocation.
The CRA document and additional details are anticipated to emerge as part of a lawsuit filed by JNF against Canada’s Minister of National Revenue, who oversees the tax authority. The lawsuit, referencing internal CRA files obtained through a public records request, argues that the revocation decision was “flawed and fundamentally unfair.”
In a statement, JNF accused the CRA of succumbing to public pressure from activist groups, labeling these campaigns as antisemitic. “As a Zionist-inspired organization, JNF Canada has many vociferous antisemitic detractors who we believe have influenced the decision-making process in this matter,” the statement said. The Ne’eman Foundation, which also funds projects in Israel, did not announce it was facing revocation and did not respond to a request for comment. Its Canadian website continues to accept donations.
Revoking a nonprofit’s charitable status for reasons beyond technicalities, such as failing to file paperwork, is rare in Canada. However, it is not unprecedented for Canadian Jewish charities working in Israel to lose their status. In 2019, a CRA audit found that Beth Oloth, a major nonprofit, violated laws by supporting the Israeli military.
The recent revocations are seen as a significant victory for pro-Palestinian groups in Canada, including the anti-Zionist Independent Jewish Voices Canada, which has raised concerns with the CRA about tax-deductible donations supporting projects on Israeli military bases. Canadian law, similar to that in many other countries, prohibits nonprofits from supporting foreign militaries.
Following complaints, the CRA audited JNF in 2014 and notified the organization in 2019 of its intention to revoke its charitable status. It is unclear why the CRA acted now, but anti-Zionist advocacy in Canada has intensified since the start of the Israel-Hamas War last October.
While American charities also support Israeli military needs, including purchasing defensive equipment, U.S. regulatory agencies are generally less likely to challenge such activities. Daniel Kurtz, a prominent nonprofit lawyer, stated that directly contributing to military efforts is not considered charitable, although indirect support might be more ambiguous.
JNF stated that it stopped projects for Israeli military bases in 2016 after being informed by the CRA that such activities were inconsistent with its charitable status. The organization claimed it offered to comply with Canadian laws and suggested compliance measures, but the CRA declined to engage in dialogue or explore compliance agreements.
Independent Jewish Voices Canada welcomed the revocation, calling it a “stunning but long overdue decision” after years of challenges from the Palestinian solidarity movement.
