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A Tax Exemption for Supporting Hamas?
A new lawsuit accuses Unrwa USA of aiding terror via its donations.
By: The Wall Street Journal Editorial Board, March 9, 2024:
ADVERTISEMENTThe United Nations has acknowledged that employees of its permanent refugee organization for Palestinians (Unrwa) supported Hamas and participated in the Oct. 7 terror attack on Israel. Should tax-exempt groups supporting Unrwa be held responsible for funding the atrocities?
That’s the subject of a lawsuit that accuses a Washington, D.C.-based charity of providing material support for terrorism through its donations to Unrwa. Unrwa USA is a 501(c)3 tax-exempt charity that describes its mission as “support for the humanitarian work” of Unrwa through “fundraising, advocacy, and community engagement in the United States.” The group is Unrwa’s largest private donor, with $3.8 million in donations in 2022 and $5 million in 2021.
The lawsuit, filed Friday in Delaware federal court on behalf of Oct. 7 survivors, says the charity’s work amounts to terrorist financing in violation of federal law. The plaintiffs say the 501(c)3 has been aware of Unrwa’s connections with Hamas’s terrorist activities and yet continued its donations. The suit says Unrwa USA knowingly “aids, abets and provides material support for those activities under the guise of humanitarian assistance.”
In January, the U.S. and other countries announced they were pausing funding to Unrwa while allegations of employees’ involvement on Oct. 7 are investigated. On Jan. 29, Unrwa USA said it was “horrified” by the allegations but that instead of pulling back on aid it would be “redoubling.” On March 1 the group said it supports the investigation by the United Nations and would “resume financial support to UNRWA upon appropriate resolution.”
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