Diaspora Jewish philanthropists protest ‘dangerous’ NGO funding bill

Dozens of Jewish philanthropists from around the world have written to Israel's Foreign Minister protesting legislation designed to limit international funding of human rights organisations.

The legislation would impose an 80% tax on any funds received by Israeli NGOs from foreign states. It is aimed at curtailing the influence of international governments who are major funders of progressive Israeli civil society organisations, such as the Association for Civil Rights in Israel (ACRI), the Bereaved Families Forum and EcoPeace.

More than 60 prominent Jewish philanthropists have called on the Israeli government to “scrap this cynical, dangerous and undemocratic bill”.

“This will deliberately, cripple almost 100 organisations and appears motivated solely by narrow political interests ill becoming of any government, irrespective of its political ethos.”

Describing themselves as “dismayed”, the philanthropists, who have collectively given hundreds of millions of dollars to Israel and Israeli causes, cited several concerns about the impact the proposed legislation would have. It is, they argued “an assault on the philanthropic endeavours of Diaspora Jews.” Many of the organisations targeted by the bill were, they pointed out, originally established with money from Diaspora donors.

They also expressed concerns about the impact the bill would have on Israel’s relationship with democratic allies. It “will antagonise allies at a time when they are most needed, for the sole purpose of hobbling organisations that the current government sees as domestic opponents,” they wrote, calling such an action “reckless.”

Among the Australian signatories are Alan Schwartz, Carol Schwartz, Joseph Skrzynski, Ron Finkel and Karen Loblay.  Well known US and UK signatories include Taglit-Birthright co-founder Charles Bronfman; past President of Jewish Federation of Greater Washington, Susie Gelman; former Conservative Party CEO Sir Mick Davis; and Tony Blair’s former Middle East peace envoy Lord Levy.

The philanthropists support a wide range of causes in Israel including support for the vulnerable, healthcare, education, infrastructure projects and the rebuilding of communities in both the North and the South of the country. They have also invested in PTSD treatment for Israelis most directly affected by the war.

The bill is set to be discussed this Wednesday by the Knesset’s Constitution, Law and Justice Committee chaired by Simcha Rotman.

Dear Minister,

Re: Bill regarding taxation of NGOs

We are philanthropists from across the Jewish world who are passionately engaged with all aspects of philanthropy in Israel, ranging from youth at risk, support for the vulnerable, healthcare, education and even important infrastructure. Since October7, we have also helped address the widespread trauma impacts on the breadth of the Israeli population affected by the war as well as rebuilding the North and South.

These contributions have been made possible thanks to Israel’s diverse and dynamic civil society sector which we have long supported. The NGOs that comprise the sector are indispensable in addressing Israel’s most pressing social issues, enhancing the resilience and sustainability of Israel’s society.

We are dismayed, therefore, by the 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. This will, deliberately, cripple almost 100 organisations and appears motivated solely by narrow political interests ill becoming of any government, irrespective of its political ethos.

Many of the organisations targeted were established with seed funding from Diaspora Jewish philanthropists, without whom they would not be in a position to receive foreign state funding.  This bill is an assault on the philanthropic endeavours of Diaspora Jews. The government will no doubt still welcome both the funding of foreign governments and Diaspora Jewish funding for projects of which it approves, many of which it could and should fund itself, but that is not how philanthropy works.

The bill is also an affront to many of Israel’s allies around the world – including our own governments – that support its NGO sector. Israelis are still facing the consequences of Hamas’s barbaric October 7 attack and 58 Israeli hostages, dead and alive, remain captive in Gaza. The subsequent war has had serious implications on Israel’s global standing. The threat from Iran, as it pursues nuclear weapons and destabilises the region through proxies such as Hamas and the Houthis remains. The international coalition that last year helped nullify Iran’s missile bombardment showed that Israel’s alliances are as important as ever.

It seems reckless, therefore, to pass legislation that will antagonise allies at a time when they are most needed, for the sole purpose of hobbling organisations that the current government sees as domestic opponents. This bill prioritises narrow politics over the national interest.

Political power in liberal democracies is temporary.  If and when those passing this bill find themselves in opposition, then the legislation they introduce now could in the future be used to penalise their preferred organisations and projects. 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.

If there is any NGO that is acting illegally there are many existing routes in law to address this, rather than bulldoze through legislation that is dangerous to the functioning of democratic society whatever one’s politics.

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.

Yours sincerely,

David Arnow, Past Vice-President UJA-Federation of New York (USA)

Joshua Arnow (USA)

Yuval Bar-Zemer (USA)

Bill Benjamin (UK)

Angelica Berrie, President of The Russell Berrie Foundation (USA)

Annie Berdy (USA)

Keith Black (UK)

Tony Bloom (UK)

Kenneth Bob (USA)

Charles Bronfman (USA)

Anat Brovman (USA)

Harold A Brown (USA)

Sir Trevor Chinn (UK)

David Cohen (Israel/UK)

Sir Ronald Cohen (UK)

Sir Mick Davis (UK/Israel)

Dr Arabella Duffield (UK)

Dame Vivien Duffield (UK)

Harold Erdman (USA)

Lord Stanley Fink (UK)

Ron Finkel, Chair, Rozana International (Australia)

Michael Gelman, Managing Director, The Morningstar Foundation (USA)

Susie Gelman, Past President, Jewish Federation of Greater Washington & Past Chair of Israel Policy Forum (USA)

Mark Goldberg (UK)

Sally Gottesman (USA)

Lord Richard Harrington (UK)

Ros Horin (Australia)

Alan Jacobs (UK)

Louise Jacobs (UK)

Sir Jeffrey Jowell (UK)

Smadar Karni Cohen (Israel)

Charles Kremer, Board Member Alliance for Middle East Peace (USA)

Michal Leon (South Africa)

Tony Leon (South Africa)

Daniel Levy (UK)

Lord Michael Levy (UK)

David Lewis (UK)          

Yuval Lion (USA)

Karen Loblay AM (Australia)

Jonanthan Lourie (UK)

Gary Lubner (UK)

Rabbi Brian Lurie (USA)

Yaffa Maritz, The Maritz Family Foundation (USA)

Leo Noé (Israel)

Geoffrey Ognall (UK)

Martin Paisner (UK)

Debra Pell, Debra Pell Philanthropic Fund (USA)

Daniel Pelz (UK)

Elizabeth Pelz (UK)

Robert Perlman (UK)

Dr Sigrid Rausing FRSL, Chair of The Sigrid Rausing Trust (UK)

The Hon. Robert Rayne, Rayne Trust (UK)

Marcia Riklis (USA)

Ronald S. Roadburg Foundation (Canada)

Alice Russell-Shapiro (USA)

Bill Russell-Shapiro (USA)

Dr Deborah Sandler (USA)

Alan Schwartz AO (Australia)

Carol Schwartz AO (Australia)

Joseph Skrzynski AO (Australia)

Sir Harry Solomon (UK)

Dr Jeffrey Solomon, President, Charles Bronfman Family Foundation (USA)

Michael Ullmann Chairman, The Ullmann Trust (UK)

Andrew Wolfson (UK)