Israeli Knesset Considers 80% Tax on Foreign Government-Sourced Donations

The Bill is condemned by most Israeli NGOs and philanthropists; hotly debated but advancing in the Knesset

Israel’s nonprofit organizations laws are primarily contained in the 1980 Associations Law, comprising 71 articles and 21 amendments discussing everything from internal governance, prohibited distributions, registration requirements, financial reporting and internal elections. Article 36A deals with reporting of contributions from “foreign political entities,” a phrase that includes in 36A(1)(D) “the unification, organization or association of foreign entities.” I am not quite what is meant by “unification” but I am pretty sure a foreign political entity” means any foreign organization. As in most countries, the law requires disclosure of all foreign sourced donations.