Philanthropic colonialism: US non-profits supporting Israel’s settlements

The ongoing atrocities being perpetrated against Palestinians have spurred a wide array of discourse ranging from contemporary political debates, varied interpretations of historical events, and even disagreements surrounding terminology.
What these discussions often neglect to account for, however, is the role of tax-exempt American 501(c)(3) nonprofit organisations. What could be deemed as a legal grey area, or a failure to adequately regulate nonprofit activity, has provided the ability for organisations to support illegal Israeli settlements on occupied Palestinian territory and fund travel for American political figures who support policies in line with Israeli state interests.
Support for settlements can take different forms. However, volunteer trips led by nonprofits are fairly common. Religious affiliations of these organisations can vary too, with some identifying as Christian and some as Jewish. HaYovel, a Christian Zionist organisation, offers volunteer trips to Israeli settlements in the West Bank. On these trips, volunteers primarily conduct agricultural work, although one of their trip options also allows for participants to engage in firefighting and night watches. Additionally, since the Hamas attack on Israel on October 7, 2023, HaYovel has been holding a fundraising campaign referred to as Operation Ittai, raising funds for purchase and distribution of security items including night vision binoculars, protective vests, aerial surveillance drones, helmets, and flashlights.
Some US nonprofit organisations also work with the Israeli military directly. A partnership between New York-based 501(c)(3) Volunteers for Israel (VFI) and the Israeli nonprofit SAR-EL, for many years placed American volunteers on Israeli military bases across the West Bank and Israel proper to perform various tasks including construction, cooking, and maintenance work. VFI has recently shifted from their military emphasis and partnership with SAR-EL, but still operate a series of different volunteer trips throughout the region. In its place, American Friends of Sar El (AFOSE) has emerged as SAR-EL’s new American 501(c)(3) volunteer recruitment partner.
Funded travel for American politicians is another method by which nonprofit organisations support Israel, its political and military objectives and settlements on Occupied land. The American Israel Education Foundation (AIEF), which functions as the 501(c)(3) wing of the American Israel Public Affairs Committee (AIPAC), specialises in leading group trips for elected officials who align with Israeli state objectives. Last summer, two dozen House Democrats participated in an AIEF-sponsored tour that featured an extensive itinerary and was heavily covered by AIPAC’s social media accounts. Among those who traveled were influential Democratic House members including House Minority Leader Hakeem Jeffries and former House Majority Leader Steny Hoyer.
AIEF’s reach extends to state and local governments as well. In December 2022, the Rhode Island Senate Minority Leader Jessica de la Cruz took part in an AIEF-sponsored trip that included stops in Israeli settlements in the West Bank and Golan Heights. Her ethics report filed the subsequent year showed that AIEF contributed more than $15,000 for her travel expenses, almost equal to her annual salary as a member of the Rhode Island General Assembly. During the following legislative session, de la Cruz sponsored legislation to define anti-Semitism in accordance with guidelines put forth by the International Holocaust Remembrance Alliance (IHRA).
Nonprofits registered under the 501(c)(3) category are both tax-exempt and restricted in terms of their political engagement efforts. The IRS specifies its regulations pertaining to 501(c)(3) political activity as follows: “all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity.”
While the rules of involvement in American elections are clear, political activity outside of that realm appears to be more legally ambiguous. As it stands currently, the IRS appears only interested in regulating nonprofit activity as it pertains to political campaign involvement, rather than addressing 501(c)(3) political activity on a broader scale. In the context of the ongoing violence in Gaza and the West Bank, it is fair to say that supporting illegal Israeli settlements and funding travel for American elected officials is inherently political.
The regulatory framework that permits American nonprofit organisations to both support Israeli settlements in the West Bank and occupied East Jerusalem, which are widely deemed a violation of international law, and to effectively lobby on behalf of a foreign state while enjoying tax-exempt status must be altered. The pathway to peace in the region is long and uncertain, but the US government offering tax exemption to nonprofits that are further stoking the conflict in line with Israeli objectives is one of many roadblocks that need to be addressed urgently.
The views expressed in this article are the author’s own and do not necessarily reflect Al Jazeera’s editorial stance.