Global Jewish Philanthropists Condemn Israeli NGO Tax Bill as 'Dangerous and Undemocratic'

A group of over 60 high-profile Jewish philanthropists from across the globe has condemned a proposed Israeli bill that seeks to impose an 80% tax on foreign government donations to local NGOs, calling it a “cynical, dangerous and undemocratic” attempt to silence dissent and undermine civil society.

In a strongly-worded letter addressed to Foreign Minister Israel Katz, the philanthropists warn that the legislation would deliberately cripple nearly 100 NGOs many of which were established with Diaspora seed funding—and severely damage Israel’s reputation as a liberal democracy.

The proposed legislation, currently under review by the Knesset’s Constitution, Law and Justice Committee chaired by MK Simcha Rotman, aims to limit the influence of foreign states funding progressive Israeli civil society organisations such as the Association for Civil Rights in Israel (ACRI), EcoPeace, and the Bereaved Families Forum. The bill’s sponsors claim it is necessary to preserve Israeli sovereignty and limit external political interference.

But signatories of the letter argue otherwise, stating the bill is politically motivated and seeks to punish organisations perceived as ideological opponents of the current government. “This is an assault on the philanthropic endeavours of Diaspora Jews,” they wrote. “It prioritises narrow politics over the national interest.”

The letter further warns that the bill not only threatens domestic civil society but also risks alienating key international allies at a moment of extreme geopolitical fragility. “Israelis are still reeling from the barbaric October 7 attack by Hamas, with 58 hostages still held in Gaza. The regional threat posed by Iran and its proxies remains grave. Now, more than ever, Israel needs its allies,” the signatories state.

They point to the international coalition that helped defend Israel from Iran’s missile strikes in 2024 as evidence of critical diplomatic partnerships that should not be undermined. “Passing this bill would recklessly antagonise allies and further isolate Israel on the global stage.”

The philanthropists also highlight a fundamental inconsistency in the government’s approach, noting that foreign and Diaspora funding will still be welcomed for state-sanctioned projects. “But that’s not how philanthropy works,” they wrote. “Governments don’t get to pick and choose which civil society groups deserve funding based on political convenience.”

They warned that the bill echoes the tactics of authoritarian regimes, stating, “This is more in keeping with efforts by autocracies to block external support for democratic initiatives than those of a democracy committed to freedom, pluralism and tolerance for dissent.”

The philanthropists also cautioned lawmakers about the precedent the bill could set: “Political power in liberal democracies is temporary. Those who pass this law today may find it used against their own causes in the future.”

Signatories include major figures from the U.S., U.K., and Australia, such as Taglit-Birthright co-founder Charles Bronfman, former Jewish Federation of Greater Washington president Susie Gelman, ex-Conservative Party CEO Sir Mick Davis, and Tony Blair’s former Middle East envoy, Lord Levy. Australian philanthropists include Alan Schwartz, Carol Schwartz, Joseph Skrzynski, Ron Finkel, and Karen Loblay.

Collectively, they have contributed hundreds of millions of dollars to Israeli society, funding critical work in education, healthcare, trauma recovery, infrastructure, and youth support.

The letter closes with an urgent plea:

“We urge you to consider the damage this bill would do to Israel’s relationships with democratic allies, to its partnerships with world Jewry and to its reputation as a liberal democracy. We urge you to do what you can to scrap this cynical, dangerous and undemocratic bill.”

The bill is scheduled for further discussion in the Knesset this week.