Canadian court rejects Jewish National Fund's bid to retain charitable status

In a major legal victory against Israel’s illegal occupation, a Canadian Federal Court has dismissed the Jewish National Fund of Canada’s (JNF Canada) attempt to regain its charitable status, after it was revoked by the Canada Revenue Agency (CRA) in August 2024.

The Federal Court rejected JNF Canada’s legal challenge last week, ruling it had no authority to reverse the government’s decision to strip the organisation of its charitable status. JNF Canada had asked the court to force the tax authority to reinstate its charitable status while it pursued other legal options.

The ruling comes after the CRA conducted an audit of JNF Canada’s operations, which led to the initial notice of intention to revoke its charitable status in August 2019. The organisation had been registered as a charity in Canada since August 1967.

JNF Canada, which has been involved in various projects in Israel, had its charitable status formally revoked when the CRA published its notice in the Canada Gazette. The organisation’s attempts to challenge this decision through the Federal Court have now been rejected.

CRA stripped JNF of its charitable status after determining that the organisation had failed to comply with the requirements of its registration under Canada’s Income Tax Act. The decision came following an extensive audit of JNF’s activities covering the fiscal periods ending 31 December, 2011 and 2012.

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While the specific details of non-compliance were not outlined in the court documents seen by MEMO, Canadian tax law requires charitable organisations to operate exclusively for charitable purposes and provide clear public benefit. Critics and activists have long argued that JNF’s activities are not charitable. Predating the state of Israel itself, JNF is viewed as a colonial entity that has facilitated Israel’s elimination, eradication and extermination of Palestinians.

The JNF, established in 1901, has played a controversial role in the acquisition and development of land in Palestine. The organisation was instrumental in the colonisation of Palestine through its land acquisition policies and development projects, which critics argue have contributed to the displacement of Palestinian communities.

JNF Canada, as a subsidiary of the parent organisation, has faced significant criticism from activists who have long condemned its use of Canadian taxpayer dollars to support infrastructure projects supporting Israel’s illegal military occupation of the West Bank. Reports indicate that up to 25 per cent of JNF Canada’s budget was derived from Canadian tax dollars.

Following the revocation of its charitable status, JNF Canada has been ordered to wind down its operations in Canada and distribute its remaining assets, valued at approximately $31 million. The organisation’s attempts to appeal this decision have now been unsuccessful at the Federal Court level.

The court decision marks a significant development in the ongoing scrutiny of organisations that contribute to Israel’s illegal Occupation of Palestinian territories, while benefiting from charitable status in Western nations. Analysts are predicting a similar legal challenge against the JNF in other Western nations where JNF has enjoyed charitable status.

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