Proposal to Limit Funding for Human Rights Organizations Advances
New Legislative Initiatives
The Chair of the Knesset Constitution Committee, MK Simcha Rothman of the Religious Zionist Party, has introduced a new version of a proposed law aimed at restricting the activities of human rights organizations and social charities. The proposed legislation, discussed in a committee meeting on Tuesday, would impose a 23% tax on donations received by charities from “foreign state entities” if those charities refuse to commit to a three-year hiatus on receiving such donations while engaging in activities critical of the government, protests, political activity, or operations within the Knesset.
Stringent Penalties for Non-Compliance
Rothman’s proposal includes stringent penalties for organizations that provide false declarations regarding their funding sources. Charities found in violation would face double taxation and additional fines. After two infractions, the registrar of charities in the Ministry of Juststart would have the authority to motion for the dissolution of the organization.
Tax Exemptions for Apolitical Organizations
Contrarily, the proposed law would exempt non-political organizations from this tax, provided they assert that they do not engage in public or political activities. The conditions for maintaining this tax exemption include restrictions on organizing public meetings with political content, participating in demonstrations, and criticizing government policy. Furthermore, organizations would be forbidden from aiding voter transportation on election day in unlawful and uncompensated ways to ensure voter turnout based on their electoral intentions.
Additional Conditions Under Consideration
Rothman is contemplating adding further stipulations for receiving such tax exemptions. For instance, organizations accepting foreign donations may be required to commit to not calling for boycotts against Israel or denying Israel’s existence as a Jewish state.
Implications of the Proposal
According to the original draft of the law, which has backing from the coalition, an 80% tax would be levied on all donations from “foreign state entities,” with affected organizations barred from petitioning the courts, including the Supreme Court. The Minister of Finance would have the discretion to grant tax exemptions, and the law would not apply to public institutions funded by the state with an annual budget of up to 100,000 shekels.
The definition of “foreign state entity” in the proposed law encompasses overseas governments and their agencies, including embassies. Most foreign donations typically arrive from the United States and Western European nations, which maintain close ties with Israel.
Who Will Be Affected?
The primary targets of this legislation are anticipated to be social organizations advocating for issues such as human rights, social change, and equality for the Arab community, women, and the LGBTQ+ community. The law’s initiator, MK Ariel Klener of the Likud party, previously clarified in committee discussions that this proposal specifically targets organizations he classifies as “extreme left.”
Recently, reports surfaced indicating that dozens of key international donors have reached out to Foreign Minister Gideon Sa’ar, expressing concerns that the proposed law is politically motivated and could lead to the suppression of around 100 civil society organizations. These donors, hailing from nations such as the U.S., Canada, and the U.K., labeled the law as “cynical, dangerous, and undemocratic.”
Official Responses
In the committee discussion, Minister of Finance Bezalel Smotrich criticized the 23% tax proposal, advocating for a stricter approach. He argued that while some foreign donations to healthcare or Holocaust survivor programs are legitimate, there should be stringent regulations against foreign entities intervening in Israeli affairs without proper agreements between nations.
Eden Bar-Tal, Director General of the Foreign Ministry, emphasized the necessity of legislation to prevent foreign interference in critical Israeli interests while also allowing positive engagement in areas beneficial to Israel. He highlighted the need to obstruct foreign efforts aimed at delegitimizing Israel and inciting unrest.
This proposed legislation raises significant debate regarding the future of civil society organizations in Israel and the impact of foreign funding on domestic political discourse. As discussions develop, many are left questioning the balance between national security and the preservation of democratic freedoms