Skip To Content
JEWISH. INDEPENDENT. NONPROFIT.
Breaking News

Lawsuit Aims To Revoke Tax-Free Status of Donations to Israel

A lawsuit naming the U.S. Treasury Department and Treasury Secretary Jacob Lew aims to revoke the nonprofit status of groups that the litigants claim have given billions of dollars in tax-exempt donations to Israel.

A group of American citizens filed the suit Dec. 21 in a U.S. court, Al Jazeera reported Wednesday. One of the litigants was identified by Al Jazeera as a Palestinian-American writer and human rights activist, Susan Abulhawa.

The Treasury Department has 60 days to respond. It declined to comment to Al Jazeera, citing the pending litigation. The department is led by Lew, an Orthodox Jew.

According to the suit, about 150 nonprofit groups have sent about $280 billion to Israel over the last 20 years.

Groups such as the Falic Family Foundation, Friends of the Israeli Defense Forces, American Friends of Ariel, Gush Etzion Foundation, American Friends of Har Homa and Hebron Fund have funneled the tax-free donations to Jewish settlements and the Israeli military, the suit claims.

It says the groups directly contributed to violations of U.S. and international law, subverted U.S. foreign policy, and contributed to crimes and human rights abuses against Palestinians, according to Al Jazeera.

“These charities’ agenda is to rid the West Bank and EJ [eastern Jerusalem] of all non-Jews, consistent with perceived biblical imperatives,” the suit charges, according to Al Jazeera. “They have been very successful in that endeavor, as detailed herein, primarily because of the Treasury’s abject and long-standing failure to monitor and prevent their criminal activities for at least the last 30 years.”

A message from our Publisher & CEO Rachel Fishman Feddersen

I hope you appreciated this article. Before you go, I’d like to ask you to please support the Forward’s award-winning, nonprofit journalism during this critical time.

We’ve set a goal to raise $260,000 by December 31. That’s an ambitious goal, but one that will give us the resources we need to invest in the high quality news, opinion, analysis and cultural coverage that isn’t available anywhere else.

If you feel inspired to make an impact, now is the time to give something back. Join us as a member at your most generous level.

—  Rachel Fishman Feddersen, Publisher and CEO

With your support, we’ll be ready for whatever 2025 brings.

Republish This Story

Please read before republishing

We’re happy to make this story available to republish for free, unless it originated with JTA, Haaretz or another publication (as indicated on the article) and as long as you follow our guidelines. You must credit the Forward, retain our pixel and preserve our canonical link in Google search.  See our full guidelines for more information, and this guide for detail about canonical URLs.

To republish, copy the HTML by clicking on the yellow button to the right; it includes our tracking pixel, all paragraph styles and hyperlinks, the author byline and credit to the Forward. It does not include images; to avoid copyright violations, you must add them manually, following our guidelines. Please email us at [email protected], subject line “republish,” with any questions or to let us know what stories you’re picking up.

We don't support Internet Explorer

Please use Chrome, Safari, Firefox, or Edge to view this site.