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Canada revokes charity status of Jewish nonprofits supporting Israel

The Jewish group argued that there is ‘reasonable apprehension of bias’ in the CRA audit.

By Shiryn Ghermezian, The Algemeiner

Canada on Sunday officially revoked the charitable status of two Jewish nonprofit organizations that allocate funds to support projects in Israel, including the Jewish National Fund Canada, a move that JNF Canada described as a “wrong and unjustified decision” allegedly influenced by antisemites.

The Canada Revenue Agency (CRA) made the announcement regarding JNF and the Ne’eman Foundation Canada in notices posted in the Canada Gazette, the government’s official newspaper.

CRA said the charities failed to meet parts of Canada’s Income Tax Act but did not elaborate further.

JNF announced in late July that it filed a lawsuit in the Federal Court of Appeal to contest the CRA decision, saying that the agency’s review process “was flawed and fundamentally unfair.”

The Jewish group is also arguing that there is “reasonable apprehension of bias” in the audit that CRA conducted.

They claim the CRA was pressured by antisemites and anti-Israel activists to revoke the group’s charitable status, and that it “was an important consideration” for the CRA when it decided to take action against the charity.

“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 nonprofit explained in a released statement.

“We believe that arguably there is a reasonable apprehension of bias on the part of the CRA. This evidence of bias comes from the CRA’s own records, which show that the public pressure on the CRA and the Minister of National Revenue to revoke JNF’s status was an important consideration within the chain of authority at the Charities Directorate. A review of the record would leave a reasonable person with the impression that this pressure resulted in a biased decision.”

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JNF Canada said it has evidence that the Charities Directorate was monitoring campaigns and comments made by those who are opposed to the group’s support for the Jewish state, specifically the anti-Israel nonprofit organization Independent Jewish Voices Canada (IJV), which has been involved in four complaints against JNF Canada.

“Given the current environment, the CRA’s decision will be seen as a victory for anti-Israel and antisemitic movements and groups,” the pro-Israel group added.

In a Q&A shared on its website on Aug. 1, JNF Canada said CRA claims the Jewish group “has failed to exercise adequate direction and control” over its primary intermediary in Israel, which is Karen Kayemeth Le’Israel (KKL).

The Israeli organization focuses on developing the land of Israel “for a sustainable future,” “strengthening the bond between the Jewish people and its homeland,” and “supporting Zionist and environmental education,” according to its website.

In the aftermath of the Oct. 7 Hamas massacre in southern Israel, KKL-JNF provided support to communities impacted by the terrorist attack, raised funds, and bought ambulances and equipment for community emergency squads, The Jerusalem Post reported.

KKL-JNF also established a special scholarship program that provided NIS 4,000 (roughly $1,075) to thousands of college students who were living in the Gaza border communities or Sderot at the time of the Oct. 7 attack.

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JNF Canada explained that CRA usually takes certain measures, like negotiating compliance agreements or invoking sanctions, before drastically revoking an organization’s charitable status.

But, in its dealing with JNF Canada, the CRA “not only skipped steps 1-3, it also refused to enter into a dialogue with us and to entertain our suggestions of new objects for our charity or to discuss a compliance agreement,” the Jewish group said.

“We maintain that the CRA erred both in fact and in law and that the process was flawed and unfair, which is why we have ended up in court.”

JNF Canada also maintains that it has addressed CRA’s concerns about its work with KKL by taking steps such as reducing the number of its projects with the group and engaging in a compliant agreement with the Israeli charity.

“KKL works for JNF Canada, just like any other agent that we utilize. JNF Canada selects the projects we wish to support and we always have direction and control over all of the funds as we reimburse expenses upon receipt of valid expense reports. In short, we have addressed the CRA’s concerns.”

JNF Canada’s National President Nathan Disenhouse said in a released statement: “Similar to other charities that support the needs of children, workers, and vulnerable communities we would expect CRA to work with, not against, our charity. Our position is that it is unjust for CRA to revoke a charity because a charitable object that it accepted almost 60 years ago is now no longer considered to be a valid charitable object.”

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“It is simply unjust to close a charity supported by over 100,000 Canadians based on reversing a decision the CRA made in 1967,” he continued.

“Today’s legal appeal will allow JNF Canada’s concerns to be considered before an impartial legal process.”

Independent Jewish Voices Canada applauded the CRA’s revocation.

“It means Canadian tax money will no longer subsidize the JNF’s illegal support of Israeli apartheid,” the group said.

It accused JNF of being compliant in “colonization, occupation and apartheid,” and added that while JNF will appeal the CRA’s decision, “we will again fight every step of the way to make sure they never use this loophole to finance Israeli crimes again.”

The Ne’eman Foundation did not respond to The Algemeiner‘s request for a comment about the CRA’s decision.

According to its website, the Ne’eman Foundation “supports projects that reduce or eliminate poverty, advance education, religion and quality of life, and promote charitable initiatives for community development in Israeli communities.”

It provides a “secure financial link” between Israel and Canada and helps Israeli nonprofits build their donor bases in Canada.

With offices in Toronto and Israel, the foundation says it offers Canadians with a wide selection of tax-deductible projects in Israel “that are monitored to guarantee that allocated funds are used accordingly and comply with the requirements of Canadian tax legislation.