TAX BATTLE

JNF Canada to mount legal challenge after it was ‘blindsided’ by revocation of its charitable status

Nonprofit says Canadian tax authority announced its decision in a print notice on a Saturday, has not released its reasons for doing so; group blames 'vociferous antisemitic detractors'

Jewish National Fund Canada will launch a legal appeal after the country revoked the charitable status of the group earlier this week “in a manner contrary to the [Canada Revenue Agency’s] standard practice,” the organization said on Tuesday. 

“In the coming days we will be advising the court of the severe damage the CRA is causing us and asking for an application for judicial review until our case is heard on its merits,” JNF told supporters in a letter. 

Canada’s tax authority announced the decision to revoke the status of JNF, as well as the Ne’eman Foundation — another nonprofit that funds philanthropy in Israel — on Saturday in notices published by the Canada Gazette, the government’s official newspaper.

The CRA did not publicly disclose a cause for the revocations, but the announcement came weeks after JNF said that it was facing revocation after the CRA determined that its mission was inconsistent with Canadian laws governing charitable activity, apparently for its support of the Israeli military and Israeli activities in the West Bank. JNF Canada had already launched a legal campaign to prevent the CRA from revoking its tax exempt status, which is still playing out in court.

Therefore JNF said that it was “blindsided” to learn of the decision over Shabbat. “The norm is that the CRA would hold the revocation until the legal proceedings conclude and a decision is delivered from the court,” JNF Canada said. 

JNF declined to release the CRA document explaining the revocation, but said that the decision was a result of “many vociferous antisemitic detractors who we believe have influenced the decision-making process in this matter.” 

Shimon Koffler Fogel, president and CEO of the Centre for Israel and Jewish Affairs, the advocacy arm of Jewish Federations of Canada, said in a statement that the group would support JNF’s appeal.

“We believe JNF has a compelling case to make in light of a troubling experience with CRA, which is mandated to work with charities rather than adopt an adversarial approach,” Fogel said. “CIJA remains hopeful that JNF and CRA will ultimately identify a constructive resolution, permitting JNF to continue its important work ranging from relief from poverty to environmental reclamation.” 

JNF has a nearly century-long presence in Canada. The organization has complied with CRA demands in the past to ensure it adheres to Canadian law, such as ending building projects for soldiers on Israeli military bases in 2016 when the CRA warned that such activity was inconsistent with its charitable status. The group said that the CRA made its most recent decision without offering JNF an alternative, noting that CRA “refused to enter into a dialogue with us.”

The Ne’eman Foundation called the revocation a “travesty of justice” in a statement. “CRA seemingly demonstrated that its interest lies in the persecution of Jewish charities that support Israel, not supporting the generous, charitable acts of loyal Canadians,” the foundation said.

According to a Toronto Sun report, CRA has continued giving charitable status to several anti-Israel organizations including to two Gaza hospitals used by Hamas for terrorist activity, including being used to hide Israelis taken hostage on Oct. 7.

CRA’s decision to cut ties with JNF was applauded by several Canadian groups. The union that represents many CRA bureaucrats wrote on X, “As the union representing over 17,000 CRA professionals, and an organization that will always stand for human rights, we commend CRA’s decision to revoke the Jewish National Fund’s charitable status.” 

In another post, the Professional Institute of the Public Service of Canada wrote, “No organization that uses tax-deductible donations to support war or genocidal efforts in an occupied territory should be able to benefit from Canadian charitable status.”