Charity Commission Launches Investigation into UK Donations to Illegal Israeli Settlements

Natalie Hughes, Crime Reporter
5 Min Read
⏱️ 4 min read

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An official inquiry is underway concerning charities in England and Wales that have allegedly funneled donations to illegal Israeli settlements in the occupied Palestinian territories. This investigation, initiated by the Charity Commission, comes after a formal complaint from Labour MP Melanie Ward, who highlighted significant financial transfers from UK charities to these controversial settlements.

Investigation Launched Amid Serious Allegations

The Charity Commission’s investigation will seek to ascertain the extent of charitable funds directed towards illegal settlements, examining whether these financial contributions align with the organisations’ charitable mandates. The inquiry will initially focus on eight charities, although there are indications that the scope may expand as the investigation unfolds.

Stephen Roake, assistant director of high-risk compliance at the Charity Commission, stated, “Serious allegations have been made about UK charities operating in illegal Israeli settlements in Palestine, so our first step is to establish the facts. Only then can we determine if regulatory action is required, based on our findings and the evidence we see.” The commission aims to ensure public trust in charitable organisations, with a commitment to developing regulatory guidelines based on the outcomes of this inquiry.

Financial Concerns and Political Reactions

The inquiry follows revelations from the Guardian, which reported last year that two British charities had collectively transferred approximately £5.7 million to the Bnei Akiva Yeshiva high school in Susya, located in the Israeli-occupied territories. In her complaint, Ward cited evidence that at least 32 charities had contributed over £28 million to these settlements, which are deemed illegal under international law.

The issue garnered further political attention when then-Foreign Secretary Yvette Cooper called for an investigation in Parliament, expressing concerns that UK charity systems were being exploited to support illegal settlements. “Some evidence suggests that rules are being broken,” she said, highlighting the potential misuse of UK gift aid.

Ward, along with 140 of her Labour colleagues, has been vocal about the need for a ban on such donations rather than merely an inquiry, expressing frustration that the Charity Commission had not acted sooner despite being aware of the issues raised in previous reports.

Scope of the Inquiry and Future Implications

The Charity Commission has signalled that it will consider expanding the investigation to include more charities as it examines the locations of their partners and the timing of their activities related to illegal settlements. There is also the potential for the names of these charities to be released alongside the findings, adding a layer of public scrutiny to the operations of these organisations.

The regulator has communicated with law enforcement and HM Revenue and Customs (HMRC) regarding the inquiry, although the Metropolitan Police’s war crimes unit has stated that no investigations into charities concerning donations to illegal settlements are ongoing at this time.

In a related story, the Guardian recently reported that Friends of Yeshivat Shavei Hevron, a British charity, had sent nearly £200,000 to a religious school central to expansion plans for an illegal Israeli settlement in Hebron. Legislative measures have shifted recently, with Israeli Minister Bezalel Smotrich unilaterally altering an international agreement regarding planning authority in Hebron, further complicating the situation.

A Call for Accountability

Abtisam Mohamed, a Labour MP and member of the Foreign Affairs Committee, welcomed the Charity Commission’s inquiry but insisted on a broader investigation. “We know there is evidence of at least 32 charities engaging in this abhorrent practice. The Charity Commission must investigate them as well and move quickly to stamp out this behaviour altogether,” she asserted. Mohamed condemned the funding of illegal settlements as extremist activity that contributes to the ongoing violence and displacement of Palestinians, asserting that such actions are incompatible with the principles of charitable work.

Why it Matters

This investigation into the funding of illegal Israeli settlements highlights significant ethical concerns surrounding charitable donations and their implications on international law and human rights. As the inquiry unfolds, it may set a precedent for how UK charities operate and are regulated, potentially reshaping the landscape of charitable giving in relation to contentious political issues. The outcome could not only affect the charities involved but also influence public confidence in charitable organisations as a whole, fostering a more accountable and transparent sector.

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Natalie Hughes is a crime reporter with seven years of experience covering the justice system, from local courts to the Supreme Court. She has built strong relationships with police sources, prosecutors, and defense lawyers, enabling her to break major crime stories. Her long-form investigations into miscarriages of justice have led to case reviews and exonerations.
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