Canadian charities move money to Israel in a multitude of ways. This post provides some of the key resources that demonstrate how the pipeline operates. We also include some publications which detail various investigations into Canadian charities’ support of Israel’s occupation, apartheid, and genocide. To see more information, you can check out our “Canada to Israel Charity Pipeline” page which includes all relevant posts from the past 7 years.

Schedule 2

Canadian charities that send funds abroad must report this information to the Canada Revenue Agency (CRA) on Schedule 2. This includes “[a]ctivities carried on abroad by the charity or intermediary.” In 2024, we identified more than $276 million moving from Canadian charities to Israel in 2024 through Schedule 2 filings. You can learn more here, and find links to previous years’ analyses.

An update on 2024 donations to Israel’s occupation, apartheid, and genocide

Donations to Canadian charities that then send the money to Israel

Gifts from one registered charity to another are recorded on Form T1236. This report includes any gifts to other registered charities or qualified donees. In many cases, pro-Israel organizations gift funds to other Canadian charities that act as the ‘counterparts’ of Israeli charities. Take for instance, Canadian Friends of Hebrew University, a Canadian registered charity that raises funds to send to Hebrew University in occupied Palestine. We refer to organizations like Canadian Friends of Hebrew University, Canadian Friends of Sheba Medical Center, and The Friends of Israel Gospel Ministry – Canada, as “associated Canadian organizations.” These funds are often, but not always, recorded on Schedule 2 of the associated Canadian organization.

Tax Breaks for Genocide: How Canadian charities are funding Israeli universities

Non-qualified donee (NQD) provisions

In 2022, the Canada Revenue Agency (CRA) made a significant change to to Canadian income tax law. Prior to the change, Canadian charities could only carry out their own activities or make grants to qualified donees. The new provisions (NQD provisions) allow Canadian charities to make grants to non-qualified donees. This rule allows Canadian charities to grant funds to NQDs without maintaining control or direction over their activities. Between 2022 and 2024, approximately $32,011,599 moved to Israel through the NQD provisions. This represents 28 donors and 77 recipients.

Using new tax code provisions to fund organizations in Israel

Gaps in CRA reporting

According to charitable filings from the Canada Revenue Agency (CRA) between 2003 and 2024, there are serious discrepancies between how much charities are reporting to give to another charity, and how much each charity is receiving. In total, we identified $101,560,585,842 or over $101 billion missing. Some organizations reported receiving more than other charities reported on the T1236. In contrast, other organizations reported receiving less. These discrepancies are not isolated to any particular type(s) of registered charities. When considering only the biggest 11 discrepancies (all of which are over $1 billion), they include healthcare organizations, government agencies, religious institutions, a school, and a conservation charity. The full list of nearly 100,000 charities reporting discrepancies includes various organizations that support Israel’s apartheid, occupation, and genocide.

Why is more than $100 billion missing from charities’ tax returns over the last 20 years?

The CRA is aware of these issues

The CRA cannot claim ignorance. Between 2021 and 2025, Just Peace Advocates submitted dozens of complaints to the CRA focusing on more than 100 Canadian charities and qualified donees.The CRA violates its own policies by:

• Allowing charities to support foreign military (in contravention of the Public Benefit Test, CG-002 Section 4).
• Failing to ensure charities fulfill their duties under the Income Tax Act, specifically by failing to accurately report their revenue and expenses, at times, completely missing a tax filing, or failing to complete whole sections of their tax return.

The CRA violates international law by:

• Allowing upholding the charitable status of organizations who violate international laws such as the Fourth Geneva Convention, Rome Statute, and Genocide Convention.
• The CRA must “carefully review any organization that is financially or politically supporting the unlawful occupation.” Specifically, Canada must not “give support to these organizations, for example through allowing the organization to have tax-exempt status or providing tax deductibility for donations to the organization and must ensure that financial contributions to support the unlawful occupation, including settlements and settlers, cease.”

The CRA violates domestic law through various legislation including:

Income Tax Act, Foreign Enlistment Act, Crimes Against Humanity and War Crimes Act, and the Geneva Conventions Act

Addressing anti-Muslim racism and holding the CRA and Canadian charities funding Israeli terrorism accountable

Canada is complicit. It is (past) time for the CRA to take action to halt its participation in the ongoing colonization of Palestine, through the facilitation of tax-subsidized funds for a genocidal military and apartheid regime.

This is also a prime opportunity for the CRA to take action in line with the National Security and Intelligence Review Agency’s (NSIRA) report of the Review and Analysis Division (RAD) which is tasked with ensuring charities do not fund terrorism. NSIRA found that most charities audited were Muslim or Sikh, and in many cases there was no clear risk of terrorist funding. Their conclusion: RAD’s decisions were potentially “driven by bias and discrimination.” This is not news to us, and of course not to the many Muslim charities that were and are unfairly targeted. The CRA responded by agreeing with 5 of the 6 recommendations from NSIRA. This is an opportunity for the CRA to put their words into action.

There is ample, credible evidence that Canadian charities are funding Israeli terrorism: war crimes, apartheid, genocide, and its illegal occupation. To not audit, suspend, and revoke these charities simply reinforces anti-Muslim discrimination and anti-Palestinian racism. The CRA can and must take urgent action.

Check out this post to see a list of charities that have been included in our complaints and to take action:

CRA, it’s time to end the Canada to Israel charity pipeline