Millions in tax-deductible donations to IDF, illegal settlements

An Australian charity receiving over $200 million in tax-deductible donations is ignoring international law, while the Government looks the other way. Stephanie Tran reports.

Jewish National Fund Australia (JNF Australia) has remitted more than $125.4m to Israel since 2009, according to financial records, while receiving $213m in tax-deductible donations since 2013.

In 2024 alone, the organisation reported $12m in donations and bequests, with $10.4m transferred to Israel.

Despite JNF Australia’s assertion that it operates independently of its Israeli parent, Keren Kayemet LeYisrael (KKL-JNF), an investigation by MWM has revealed that tax-deductible donations raised by JNF Australia have been directly transferred to KKL-JNF. Some have been used to support IDF soldiers and fund illegal settlements.

Independent really?

JNF Australia has repeatedly stated that it operates independently of KKL-JNF in Israel.

In 2017, Israeli Prime Minister Benjamin Netanyahu demanded that KKL-JNF transfer 80% of its revenue to the Finance Ministry to help fund state-run infrastructure projects or risk losing its tax-exempt status.

Following the announcement, JNF Australia declared that it was a “separate independent entity” from KKL-JNF. They stated that “funds raised by JNF Australia go directly towards these projects, with not one dollar used to fund KKL”

In 2021, KKL-JNF’s board voted to officially permit the purchase of private land in the occupied West Bank for settlement expansion, a decision that was criticised as an open violation of international law.

Shortly after the decision, JNF Australia’s president and CEO again attempted to distance the organisation from its Israeli parent, stating that the Australian body was “an independent entity from KKL”.

“JNF Australia only applies donor contributions towards JNF Australia projects and priorities [and] is therefore unaffected by any changes to KKL’s priorities and policies, whether in respect to land acquisition or elsewhere,” they said, adding that the organisation “has no representatives on the KKL board, nor is it involved with or bound by any of their decisions”.

However, our analysis of Israeli financial filings shows that JNF Australia has transferred millions of dollars directly to KKL-JNF (also known as the Israel National Fund) since making these statements.

Although the sources of foreign donations were redacted in Israel National Fund’s 2024 financial report, financial reports lodged in previous years identify Australia as a source of overseas donations.

Between 2021 and 2024, KKL-JNF received 41.86m Shekels ($19.4 million) in donations from Australia and New Zealand. 

The financial reports state that these donations “are received from residents of various countries, including through KKL-JNF offices abroad”. 

JNF supporting illegal settlements

The Jewish National Fund was founded in 1901 to purchase land in Palestine for Jewish settlement, decades before the establishment of Israel. Over the past century, KKL-JNF has played a central role in land acquisition and large-scale “forestation” projects across the occupied Palestinian territories.

These activities have long been intertwined with the displacement of Palestinians. An investigation by Haaretz revealed that the Israeli Defence Ministry recruited KKL-JNF to secretly purchase Palestinian land in the West Bank for settlers. Israeli NGO Zochrot has accused JNF of contributing to the “ongoing Nakba” through projects that plant forests or develop parks on land where Palestinian communities once stood,

while supporting illegal settlement initiatives.

In July 2024, the International Court of Justice (ICJ) issued a landmark advisory opinion finding that Israel’s occupation of Palestinian territory is illegal under international law.

The ICJ held that Israel must end its presence in the Occupied Palestinian Territory as rapidly as possible, and immediately cease all new settlement activity. The Court also held that third states have an obligation “not to render aid or assistance in maintaining the situation created by Israel’s illegal presence in the Occupied Palestinian Territory”.

In a subsequent position paper responding to the ruling, the United Nations Independent International Commission of Inquiry on the Occupied Palestinian Territory, including East Jerusalem and Israel, said states should not provide tax deductibility for donations to organisations that support illegal occupation.

“States shall not give support to these organizations, for example, through allowing the organization to have tax-exempt status or providing tax deductibility for donations to the organization and must ensure that financial contributions to support the unlawful occupation, including settlements and settlers, cease,” the Commission said.

Chris Sidoti, a commissioner on the UN inquiry, said the implications for Australian charities that fund Israeli settlements were clear.

“We should end tax deductibility for any Australian charities that provide funding for Israeli settlements or for Israeli organisations that support the establishment or maintenance of settlements,” he said. Any organisation that is financially or politically supporting the unlawful occupation, including funding settlements,

should have its tax-exempt status removed and should be deregistered.

Despite the UN General Assembly adopting a resolution in September 2024 demanding that Israel end its unlawful occupation no later than 12 months after the adoption of the resolution, the Israeli government has accelerated settlements in the West Bank.

Last month, Israel’s security cabinet repealed land laws, enabling settlers to purchase land in the West Bank without limitation and without government oversight to “enable accelerated development of settlement on the ground”.

“Public Benevolent Institution”

JNF Australia operates through three charities registered with the Australian Charities and Not-for-profits Commission (ACNC):

All hold deductible gift recipient (DGR) status. The Jewish National Fund (Australia) Pty Limited is also registered as a public benevolent institution (PBI).

Under Australian law, charities must pursue exclusively charitable purposes and comply with governance and external conduct standards, including obligations relating to overseas activities.

Support for IDF soldiers and settlers

Jewish National Fund Australia publicly promotes programs providing financial support to soldiers in the Israel Defense Forces (IDF), including “Ach Gadol”, “Atidim Lone Soldier Education Support” and “Panim el Panim”.

The Ach Gadol initiative offers one-on-one support for “lone soldiers” serving in the IDF. The project aims to create a support system for lone soldiers throughout their army service and “deepen the values of Zionism and love of the land among young new immigrants”.

According to JNF, “there are over 7,000 lone soldiers currently serving in the IDF. About 45% of these soldiers are new immigrants, coming from Jewish communities all over the world.”

Panim-El-Panim, in cooperation with the IDF Chief Rabbinate, have launched several programs in which renowned and experienced lecturers are sent to various bases across the country to give lectures and shiurim that provide the soldiers with the tools and ability to cope with the complex challenges they face during their military service and life afterwards. The workshops are also aimed at strengthening and deepening their Jewish identity. Panim-El-Panim meets with over 90 thousand soldiers annually.

Atidim Lone Soldier Education Support assists lone immigrant soldiers after their service, providing the “support they need to become part of Israel’s vital nation building”. According to Al Jazeera, thousands of foreign soldiers fight in the IDF.

JNF Australia has also fundraised for Ateret Cohanim, an extremist settler group active in East Jerusalem. Ateret Cohanim has filed eviction lawsuits against around 100 Palestinian families living in East Jerusalem. JNF Australia removed the fundraiser from its website after members of the Australian Jewish Democratic Society wrote an article about the fundraiser.

Daniel Luria is the executive director and spokesman of Ateret Cohanim later claimed that “Ateret Cohanim does not receive any money from the JNF Australia and Ateret Cohanim has not appeared on the JNF site as a partner project.”

MWM put questions to JNF Australia regarding their relationship to KKL-JNF and their funding of IDF soldiers and settlers. They did not respond to the request for comment.

ACNC response

We also put questions to the Charities Register, who responded:

“The United Nations’ view that settling civilian populations in an occupied territory is contrary to international law has not, at this stage, been incorporated into domestic Australian law. The ACNC cannot enforce international law unless that law has been incorporated into Australian domestic legislation.

“Anyone can raise a concern about a charity with the ACNC, and we take all concerns seriously. When a concern is raised, we use a standard independent process to review details and, if necessary, commence an investigation. We will act when there is evidence that a charity has breached its obligations. The action we take is proportionate to the wrongdoing we find.”

See the ACNC’s full response below:

Violating international law

Despite the ACNC’s assertion that they “can’t enforce international law”, legal experts say the use of tax-deductible donations to fund projects connected to Israeli settlements and the IDF raises significant issues under both Australian law and international legal obligations.

The Australian Centre for International Justice (ACIJ), which has been monitoring potentially unlawful activities of Australian charities operating in the occupied Palestinian territories, said the legal position regarding settlements is well established.

“It is well established that Israeli settlements in the occupied Palestinian territory are unlawful under international law, and this position has been repeatedly affirmed by the international community,

including through Australia’s own foreign policy.

According to ACIJ, Australian charities supporting activities connected to settlements could face scrutiny under Australia’s criminal and taxation laws.

“Australian charities supporting activities connected to unlawful settlements raise serious questions about compliance that extend beyond charity regulation to broader concerns under Australia’s criminal and taxation laws,” the organisation said.

“Conduct that amounts to direct or indirect participation in the transfer of the civilian population of an occupying power into territory it occupies is a criminal offence under Australia’s Commonwealth Criminal Code.”

ACIJ also warned that funding directed to the IDF may raise additional legal risks given the current proceedings against Israel and its leadership in the ICJ and ICC:

“Directly or indirectly funding the Israeli military raises additional concerns, particularly in circumstances where Israel is currently before the International Court of Justice over alleged violations of the Genocide Convention, and where senior Israeli leadership, including the Prime Minister, is subject to arrest warrants issued by the International Criminal Court for alleged war crimes,

“These circumstances raise serious questions about the risks of complicity for those financially supporting Israel’s military apparatus.”

Human rights lawyer Rita Jabri Markwell, who is part of the coalition of lawyers developing the proposed “Red Lines Package” legislation aimed at preventing Australian institutions from supporting genocide, war crimes and crimes against humanity, said the issue also engages Australia’s international obligations.

“In July 2024, the International Court of Justice found that all third-party states, including Australia, have a mandatory positive obligation not to render aid or assistance that would maintain Israel’s illegal presence in the occupied Palestinian territory.

“The court further stated that all states must abstain from entering into economic or trade dealings with Israel concerning the occupied Palestinian territory or parts thereof which may entrench its unlawful presence in the territory.”

Markwell noted that Australia supported the UN General Assembly resolution calling on Israel to end its unlawful presence in the occupied territories, noting “Australia has recently voted in favour of a United Nations resolution demanding that Israel rapidly end its unlawful presence in the occupied Palestinian territories, aligning ourselves with 142 other nations, including the United Kingdom, Canada and New Zealand.

What we say at the United Nations must be matched by what we do at home.

Markwell said the Red Lines Package seeks to close the gap in Australian law.

“This gap in domestic law is precisely why the upcoming Red Lines Package is urgently needed. The bill incorporates these international obligations into domestic law and empowers the ACNC commissioner to revoke charity status where there are breaches.”

“Tax-deductible donations are a form of public subsidy. Every Australian taxpayer contributes when charities are granted Deductible Gift Recipient status. It is therefore vital that charities ensure these funds are used solely for genuine public benefit,” she said.

“Under this system of occupation, settler violence against Palestinians is rife, often armed, protected and facilitated by the Israeli Military. In the West Bank, Israeli settlers have assaulted, tortured, and committed sexual violence against Palestinians, stolen their belongings and livestock, threatened to kill them if they did not leave permanently, and destroyed their homes and schools under the cover of the ongoing campaign in Gaza and now Iran.”

Behind every donation are attacks on real people and lives, and real suffering.

In 2024, the Canada Revenue Agency revoked the charitable status of the Jewish National Fund of Canada over the use of donations for Israeli military infrastructure projects.

There is an ongoing campaign in the UK to revoke the charitable status of JNF UK for its role in funding the Israeli military and supporting Israel’s illegal settlements in the occupied Palestinian territory.

Revealed: Australian taxpayers subsidising the IDF, illegal settlements in Israel