Jewish National Fund is appealing CRA decision to revoke its charitable status

(Toronto) – On June 26,  Canada Revenue Agency (CRA) notified Jewish National Fund (JNF) that it plans to revoke the group’s charitable status in Canada with respect to their charitable purpose.

JNF Canada has now launched legal proceedings in the Federal Court of Appeal to contest the CRA decision to revoke JNF Canada’s charitable status. The appeal states that the CRA review process was flawed and fundamentally unfair.

According to a recent news release, JNF Canada has “throughout this multi-year process demonstrated its willingness to work with the CRA. When the CRA raised concerns, JNF Canada made changes to its operations in the spirit of collaboration even though it does not agree with CRA’s positions and those positions have not been tested in court.” In the news release, JNF Canada says that “alternatives to the revocation” were sought “prior to launching its legal challenge.”

JNF Canada remains deeply concerned with the CRA’s “wrong and unjustified” decision to revoke its charitable status and “its failure to provide a fair due process, thereby undermining a basic fundamental right for all Canadians.”

“Similar to other charities that support the needs of children, workers, and vulnerable communities we would expect CRA to work with, not against, our charity,” noted Nathan Disenhouse, National President, JNF Canada. “Our position is that it is unjust for CRA to revoke a charity because a charitable object that it accepted almost 60 years ago is now no longer considered to be a valid charitable object.  It is simply unjust to close a charity supported by over 100,000 Canadians based on reversing a decision the CRA made in 1967.”

In 2019 JNF Canada was the subject of a CRA audit over a complaint that it used charitable donations to build infrastructure for the Israel Defence Forces (IDF), in violation of Canada’s tax rules. The organization stopped funding the projects that were in question in 2016.

“We would like to clear a misconception that was advanced in numerous articles recently published about JNF Canada,” stated Disenhouse and JNF Canada CEO Lance Davis in a July 30 update. “The articles conflated the matter of JNF’s community projects on IDF bases and our recent notice of confirmation to revoke our charitable status. In the June 26, 2024 correspondence from CRA, there was not one mention of the projects on IDF property. The fundamental issue was with respect to our charitable purpose. It was very unfortunate that certain journalists shared content from articles about JNF Canada from many years ago that was not referenced in CRA’s recent correspondence.”

“Today’s legal appeal,” they explained, “will allow JNF Canada’s concerns to be considered before an impartial legal process.”

At the same time, JNF Canada emphasized that it remains open to liaising with the CRA in the hope of  reaching  a resolution outside  of the legal process.

In a letter to JNF Canada supporters, Disenhouse and Davis wrote, “As a Zionist-inspired organization, JNF Canada has many vociferous antisemitic detractors who we believe have influenced the decision-making process in this matter. We believe that arguably there is a reasonable apprehension of bias on the part of the CRA. This evidence of bias comes from the CRA’s own records, which show that the public pressure on the CRA and the Minister of National Revenue to revoke JNF’s status was an important consideration within the chain of authority at the Charities Directorate. A review of the record would leave a reasonable person with the impression that this pressure resulted in a biased decision.”

JNF Canada says that it “remains determined to fulfill its mandate to advance charitable projects in Israel to benefit all citizens and to continue to act as a pillar of the Jewish community in Canada.”

JNF Canada will continue its charitable activity including collecting and receipting donations and distributing funds while the legal challenge is before the Federal Court of Appeal. It has informed donors and organizations of the legal appeal, reinforcing that JNF Canada is continuing its work as the legal appeal process proceeds.

The Centre for Israel and Jewish Affairs (CIJA) showed support for JNF and said there is a “compelling case to make light of a troubling experience with the CRA.”

“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,” CEO Shimon Koffler Fogel said in a statement.

Disenhouse and Davis wrote, “Now more than ever our extended family in Israel needs JNF Canada. The charitable needs in Israel are enormous and JNF Canada will be there for the land and people of Israel thanks to you. We will not give up in our efforts to fulfil our mission and mandate.”