Email the CRA to demand they open an investigation into Canadian charities that have invested in or given money to Israel Bonds
What are Israel Bonds?
Israel Bonds launched in May 1951 in New York, only three years after the Nakba. By 1971, worldwide sales had already passed $2 billion, and by 1992, $12 billion. As of 2022, worldwide sales of Israel Bonds exceeded $47 billion. Despite the devastation caused by Israeli’s escalation of genocide in October 2023, in the 30 days after October 7, Israel Bonds secured another $1 billion in investments. Israel Bonds are the main finance source for Israel’s state budget and have been critical to financing the ongoing genocide in Gaza. In Canada, Israel Bonds are administered by Canada-Israel Securities, Limited (CISL).
What does that have to do with Canadian charities?
We have identified 13 Canadian charities that have either given tax-subsidized funds to Israel Bonds as charitable recipients or hold investments in Israel Bonds. We found a total of nine organizations who transferred funds, between 2001 and 2019, for “Israel Bonds” and/or where the recipient name was listed as CISL. Another four charities reported holding Israel Bonds as part of their assets / investment portfolio. Of these charities two are health-related foundations (Baycrest Foundation and Sinai Health Foundation), one is a revoked charity (Jewish National Fund of Canada), and a donor to United Israel Appeal which is involved in international legal violations through the World Zionist organization (Jewish Foundation of Greater Toronto). An additional organization reports hosting an ongoing collaboration with Israel Bonds.
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Why does it matter?
Israel Bonds are used to not only maintain the occupation but expand and develop it. The State of Israel has also clearly explained in its SEC filings, that Israel Bonds are important to its actions in Gaza since October 7, 2023 – thereby establishing evidence that Israel Bonds support genocide. That being said, irrespective of October 7, Israel Bonds have and continue to be an integral factor in Israel’s establishment and continued presence as an occupier and apartheid state.
In a recent report from Law for Palestine, the legal organization details how allowing the sale of Israel Bonds constitutes “aid or assistance” to the Israeli occupation, in contravention of the July 2024 ICJ Advisory Opinion, and violates States’ duty to prevent genocide.
Arguably, because Israel Bonds are so integral to Israel’s military, funding Israel Bonds also goes against CRA’s own policy which prohibits support for foreign military. The CRA is also clear, charities are not permitted to support foreign governments: “[G]overnments outside Canada are not [qualified donees]. Charities can conduct activities abroad…however, a charity is not able to simply gift funds overseas without either sufficient evidence of direction and control over the use of its funds, or evidence of the accountability requirements being in place.”
While there is no clear directives on charities obligations regarding investments in foreign bonds, what is clear is CRA’s legal responsibility under domestic and international law. As an arm of the Canadian Government, the CRA holds responsibilities as a Third State, as noted above. Therefore, CRA must adequately regulate the organizations under its purview by suspending and/or revoking charitable status.
Summary
Canadian charities should not be investing funds in or providing direct funds to Israel Bonds because it:
• Supports a foreign military (in violation of CRA policy)
• Supports a foreign government (in violation of CRA policy)
• Implicates the CRA a government of a Third State by providing “aid and assistance” to the Israeli occupation and failing to prevent genocide (both in violation of Canada’s legal obligations).
The CRA must take action to ensure charitable funds and charity investments do not support genocide through State of Israel Bonds.
Email the CRA today to demand they:
1. Open an investigation into these 14 charities and any other charities that have reported sending funds to Israel Bonds or CISL.
2. Prohibit charities from investing funds in Israel Bonds.
