Leading Jewish philanthropists blast ‘dangerous’ government-backed NGO taxation bill
Some 60 benefactors call on FM Sa’ar to oppose legislation that would impose an 80% tax on foreign government donations to NGOs, likening it to ‘policies of authoritarian regimes’
Jeremy Sharon is The Times of Israel’s legal affairs and settlements reporter
A group of some 60 prominent Jewish philanthropists strongly objected to a government-backed bill targeting foreign-funded nongovernmental organizations, or NGOs, labeling the legislation “a dangerous attack on the democratic foundations of the state” and akin to “the policies of authoritarian regimes,” in a letter sent to Foreign Minister Gideon Sa’ar on Monday.
The signatories said the bill sought to “deny legitimate and worthy NGOs of foreign state donations,” due to “narrow political interests ill-becoming of any government,” and called on Sa’ar to act to thwart the legislation.
The bill, sponsored by Likud MK Ariel Kallner, would allow the government to tax foreign government donations to domestic nonprofits at a rate of 80 percent, while also stipulating that courts need not consider petitions filed by groups “primarily financed by a foreign political entity.”
The bill, which passed its preliminary reading in the Knesset, could lead some NGOs that rely on funding from foreign governments, liberal groups and human rights organizations in particular, to shut down.
The legislation has been strongly criticized by civil rights organizations, which allege that the bill amounts to a politically selective effort by the government to shut down criticism of its actions by civil society organizations, similar to how authoritarian regimes in different parts of the world have done in recent years.
Signatories of the letter include some of the most prominent philanthropists in the Jewish world, including Charles Bronfman, the co-founder of Taglit-Birthright; president of The Russell Berrie Foundation, Angelica Berrie; managing director of the Morningstar Foundation, Michael Gelman; past president of Jewish Federation of Greater Washington, Susie Gelman; chairman of the Clore-Duffield Foundation, Dame Vivien Duffield; former Conservative Party CEO Sir Mick Davis; British peer and former UK Middle East peace envoy Lord Michael Levy; and former UK Conservative Friends of Israel chairman Lord Harrington.
Neither Sa’ar or Kallner immediately responded to a request for comment.
In their letter to Sa’ar, the philanthropists said they were “passionately engaged with all aspects of philanthropy in Israel, ranging from youth at risk, support for the vulnerable, healthcare, education and even important infrastructure,” and also noted their support for Israel in the wake of the October 7 atrocities perpetrated by Hamas.
“We are dismayed, therefore, by this punitive bill introduced to the Knesset that seeks to deny legitimate and worthy NGOs of foreign state donations by imposing a crippling 80% tax on any such funding,” they stated.
“This will, deliberately, cripple almost 100 organizations and appears motivated solely by narrow political interests ill becoming of any government, irrespective of its political ethos.”
The philanthropists pointed out that many of the organizations that they say are targeted by the legislation were established with seed funding from Diaspora Jewish philanthropists, and called the bill “an assault on the philanthropic endeavors of Diaspora Jews.” They also implicitly accused the government of hypocrisy, saying it would “no doubt still welcome both the funding of foreign governments and Diaspora Jewish funding for projects of which it approves,” adding that the government “could and should fund” many of those projects itself.
“The bill is also an affront to many of Israel’s allies around the world – including our own governments – that support its NGO sector,” wrote the philanthropists, arguing that the bill was therefore “reckless” since it would antagonize Israel’s allies at a time when they are needed to help for diplomatic and military help.
“It is a dangerous attack on the democratic foundations of the state and more in keeping with the policies of authoritarian regimes seeking to block external support for democracy than those of a democracy. It is an affront to the values of freedom, pluralism and tolerance for dissent that are hallmarks of liberal democracies, all of which Israel claims to uphold,” the philanthropists stated in their letter.
They asserted that if there are NGOs violating the law then that should be addressed without “bulldozing” legislation through the Knesset.
“In your capacity as foreign minister, we urge you to consider the damage this bill would do to Israel’s relationships with democratic allies, to its partnerships with world Jewry and to its reputation as a liberal democracy. We urge you to do what you can to scrap this cynical, dangerous and undemocratic bill,” they concluded.
The Times of Israel Community.