Jewish Nonprofit calls for Suspension of Other Jewish Nonprofits as supporters of Terrorism.
I am not quite sure what to make of the allegations described in an op-ed piece published last Friday in the Washington Post, alarmingly titled, “Your tax dollars are propping up the intellectual heirs of an Israeli terrorist.” The commentary, written by the executive director of T’ruah, a Jewish human rights nonprofit, accuses the Jewish Heritage Movement, American Friends of Yeshivat HaRaayon HaYhudi, and Central Fund of Israel, of “openly promoting the extremist teachings of Meir Kahane, the late U.S.-born rabbi who preached — and directed — terrorism against those he viewed as enemies of Israel or the Jewish people.” The op-ed argues that the Service should suspend all three organizations’ tax exempt status because of their support for terrorism:
But U.S.-based nonprofits still send millions of dollars a year in tax-deductible contributions to organizations that espouse Kahane’s ideology. The Heritage House is supported heavily by Jewish Heritage Movement, a Staten Island-based tax-exempt organization. Two other organizations also fund Kahanist groups: American Friends of Yeshivat HaRaayon HaYehudi (the “Jewish idea” yeshiva), an educational institution founded by Kahane that features his videos and writings in its teachings; and the Central Fund of Israel , which says it sends donations from the United States to 300 different charities in Israel. Some of those organizations, though, are led by Kahane proteges committed to carrying out his legacy. These include Honenu, which describes itself as “an Israeli Zionist legal aid organization” for people who “find themselves in legal entanglements due to defending themselves against Arab aggression, or due to their love for Israel,” but which Israeli news organizations have reported also has made cash payments to Israelis convicted of terrorism and to their families; and Hemla, which has issued promotional materials saying it aims to “save” Jewish women who are “at risk of” forced conversion from intermarrying with Palestinians.
The author, Rabbi Jill Jacobs, explains that the three nonprofits whose tax exemption should be suspended send money in support of a Jerusalem youth hostel called The Heritage House (and other Israeli organizations) which, in turn, espouses ideas formerly propounded by Meir Kahane. Those ideas were repudiated as being made in support of terrorism by both the Israeli and American governments some time ago. Rabbi Jacobs explained that her organization filed a complaint with the IRS about the U.S. organizations’ support of the Heritage House and other Israeli organizations that espouse Kahane-ist ideas. “Those of us who support Israel often complain about the Palestinian Authority’s payment to families of terrorists, including some who have carried out horrific and fatal attacks on Israeli citizens. We must speak just as loudly against the funding of terrorism and incitement by Israeli extremists, especially when American taxpayers finance these activities through subsidies of tax-exempt organizations.” I think that’s a fair sentiment. But when I asked for a copy of the actual complaint for discussion in this blog, I was informed that the op-ed contains all the information contained in the complaint — an assertion I interpreted as a “no.” I sure hope there is more to the complaint that what is stated in the op-ed, because I don’t think the op-ed describes anything more than a couple of Israeli organizations that support the idea that the Palestinians don’t have a case and perhaps a hint of Jewish racial and ethnic supremacy. Certainly not enough to justify suspension of tax exempt status. At the very least, the op-ed misstates the law, as demonstrated by this excerpt:
Section 501(p) of the U.S. tax code asserts that “an organization’s tax exempt status will be suspended upon proof that it is engaged in terrorist activities.” The IRS takes its definition of “terrorist” from the Immigration and Nationality Act, which lays out a wide scope of violent activities that constitute terrorism and includes indirect support for terrorism — such as providing material support, soliciting others to take part in terrorist activities or raising money for terrorist groups. Significantly, this definition relates to any group that engages in terrorist activity, whether or not the State Department has officially designated it as a “foreign terrorist organization.”
I went back and looked at 501(p) and it does not say what it is quoted as saying. I wanted to have a conversation with the Rabbi but judging by the comments to the op-ed on the WaPo website, she is probably very busy defending her viewpoint and, unfortunately, her judeo bona-fides. As I mentioned to her in an email, the substance of her argument may have merit, but the procedure she is advocating seems wrong. I don’t think IRC 501(p) allows the Service to decide by itself, and without prior designation by the State Department or via executive order, that a nonprofit is a terrorist organization and therefore should have its tax exempt status suspended:
I am just not sure your call for action has been constructed on as solid a legal foundation as is necessary. My observations, by the way, are more procedural than substantive. As a matter of procedure, I don’t think the Service has the authority to suspend tax exempt status without some action by the State Department or by Executive Order. For example, I don’t see the language you quote as coming from 501(p) (“an organization’s tax exempt status will be suspended upon proof that it is engaged in terrorist activities.”) in section 501(p). The op/ed also argues that the IRS need not wait for official designation by the State Department. If true, that means the Service could suspend tax exempt status without being prompted by a State Department finding or an executive order. I don’t know if I want that particular assertion to be true or not, since it would give the Treasury Department a lot of power [and responsibility]. It seems to me that 501(p) does, in fact, require a designation or identification by the State Department or by Executive Order before an organization’s tax exempt status can be suspended. See 501(p)(2) and 501(p)(3). So you might be better off sending the [somewhat mysterious] complaint to the State Department.
I haven’t received a response yet.
Darryll K. Jones