September 2024
Lance Davis, CEO, JNF Canada

For many Canadians, the Jewish National Fund of Canada is an integral part of the fabric of Canadian society for the good work we do in Canada and for the land and people of Israel.  JNF Canada was surprised and disappointed when CRA decided to use its most draconian tool—revocation—with respect to JNF Canada.  There were many off-ramps the CRA could have utilized short of revocation, but unfortunately we are in a position where JNF Canada has no choice but to use the appeals process in order to preserve our charitable status.

The CRA’s decision is based on a 2014 audit relating to our work in 2011-2012.  Although no issues of significance were raised in four previous audits, the CRA maintains that our original main “charitable object” is unacceptable.  The JNF’s “charitable object,” a term that refers to the object of a charity’s fundraising activity, was determined back in 1967, when the organization stated its intention to raise funds for “the employment of indigent labourers” on “various work projects,” i.e. providing new immigrants with employment, such as planting trees or digging reservoirs. At the time Revenue Canada, the predecessor of the CRA, wrote that it had received “satisfactory evidence and assurances that the activities presently carried on in Israel are and will continue to be carried out in a way which meets the requisites of those principles.”  We maintain its unjust for CRA to revoke a charity because a charitable object that it accepted almost 60 years ago is no longer seen as valid.   

Notwithstanding the CRA’s stated commitment on its website to explore compliance measures through education letters, compliance agreements and sanctions before revoking an organization’s charitable status, the CRA neglected to follow their own procedures by going straight to revocation 

As a Zionist-inspired organization, JNF Canada has many vociferous antisemitic detractors who, we believe, have influenced CRA’s decision-making process. 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.  As well, we assert that there was a lack of due process in the manner in which CRA treats charities.  

There are no opportunities to test the CRA’s decision in an independent tribunal or in tax court.  Unlike individuals or corporations, charities do not have an opportunity to argue the facts and the law surrounding their cases before an impartial judge. Rather, these cases go to the Federal Court of Appeal, where, in the overwhelming majority of cases, the CRA’s position is upheld. 

There has been a great deal of misinformation about our situation, among them the accusation that JNF Canada is complicit in Palestinian suffering. Let me be clear. JNF Canada projects support the environment and vulnerable groups in Israel, regardless of nationality or religion. We build charitable environmental and social infrastructure—such as special needs facilities, therapy centres, and women’s shelters—that have improved the lives of thousands of people from all backgrounds. We are proud of this work and the positive impact it’s had on communities and people in need. 

Some have claimed that JNF projects are built on disputed territory.  After informing CRA that, while disagreeing that our projects violate Canadian policy or regulation, we would not advance further projects in these areas, the CRA backed off on this matter.

The most pernicious claim is that JNF Canada funds the IDF. JNF has built charitable projects on IDF bases such as playgrounds, parks, meeting point areas for families to visit, public amenities, etc. These projects account for under one per cent of the funds we sent to Israel to advance projects.  It is simply untrue that we provide funding for weapons or military equipment. A swing set is not a military asset. And yet, when CRA informed us that these types of projects did not fall within their guidelines, in order to be cooperative with the audit, we agreed that we would no longer advance these types of projects. 

In summary, we have demonstrated our willingness to work with the CRA, even on items with which we disagree on their legal nature. When the CRA raised concerns, JNF Canada addressed them. As a result, we remain puzzled and frustrated with the CRA’s decision to revoke our charitable status and its refusal to enter into a constructive dialogue with us.  Why would a venerable organization with decades of history, many CRA audits, more than 100,000 donors, offices across the country, endorsements from religious leaders, thought leaders, and elected officials from across the political spectrum at the federal, provincial and municipal level be issued a letter of revocation without any substantive discussion or negotiation with our leadership?  

We thank our dedicated supporters from Hamilton and coast to coast for standing by JNF Canada.  In the aftermath of Oct. 7, our work to help rebuild Israel is needed now more than ever.

Photo caption: JNF project: the Max and Gianna Glassman PTSD and Health Centre in Jerusalem, which provides mental health support to a variety of populations including trauma victims, children, and seniors. The project was realized thanks to the generosity of a variety of communities, including Hamilton.