A great deal of support for Israeli settlements comes from the United States in the form of tax-deductible contributions from private donors. The Obama administration, like all administrations before it, opposes Israeli settlement in the West Bank and considers it an obstacle to peace. Yet, at the same time, the United States government effectively incentivizes support for the settlements by allowing American charities to disburse millions of tax-deductible dollars in support for them.
This problem has not gone unnoticed, even though it continues unimpeded at this point. The Israeli daily, Ha’aretz, is publishing a series of reports and data uncovered by journalist Uri Blau detailing the extent of private American support for the settlements.
This investigation by Blau pushes forward efforts that a number of US-based groups have made in the past. Most recently, T’Ruah: The Rabbinic Call for Human Rights brought attention to this issue by filing a complaint against one such group, Honenu, in New York. Earlier in 2015, the group Avaaz petitioned the IRS to revoke the tax-exempt status of The Hebron Fund, which directly supports the flashpoint Israeli settlement in that Palestinian city.
As we wrote in September, “It is no secret that American charities send tax-deductible donations to Israeli settlements. And, while supporting settlements may be contrary to the stated policy of the United States, sending such donations is neither illegal nor a violation of IRS regulations governing tax-deductible charitable donations…[But] Stigmatizing such organizations can have a significant impact.”
This Ha’aretz investigation is bringing important information to light, but if it is to become more than an interesting series of articles, it will be crucial for Americans who recognize the settlements as a problem to bring greater attention to how the US tax code being used to entrench Israel’s occupation of the West Bank. In order to facilitate that discussion, FMEP has assembled the resources below.
The Ha’aretz Investigation
Documents and articles of note