Watchdog to Probe UK Charities Linked to Illegal Israeli Settlements

The Charity Commission has initiated an official investigation into charities in England and Wales that may have donated funds to illegal Israeli settlements in Palestine. The probe aims to assess the extent of such donations, determine whether they align with the stated purposes of the charities, and evaluate potential regulatory actions. This comes following reports by The Guardian highlighting the involvement of multiple UK-based charities in supporting settlements deemed unlawful under international law. According to The Guardian, the investigation was prompted by a formal complaint submitted by Labour MP Melanie Ward in June. In the complaint, Ward claimed that at least 32 charities in England and Wales had contributed a minimum of £28 million to illegal Israeli settlements. The inquiry appears to be a direct response to this allegation. The Guardian also noted that prior coverage by the outlet had exposed the transfer of approximately £5.7 million from two UK charities to the Bnei Akiva Yeshiva high school in Susya, located in Israeli-occupied territory. Stephen Roake, assistant director of high-risk compliance at the Charity Commission, announced the investigation, stating that the regulator's initial focus will be on eight unnamed charities. Roake emphasized that the commission's first step is to gather factual evidence before determining if regulatory measures are needed. He also mentioned that the findings could inform future guidance aimed at maintaining public trust in charitable activities. Former Foreign Secretary Yvette Cooper previously raised concerns in Parliament about the misuse of the UK’s charity system to channel support to illegal settlements. She warned that some rules were being violated and that tax relief mechanisms, such as gift aid, might be exploited for this purpose. In response, Ward argued that her party and 140 Labour colleagues sought a complete ban on such donations rather than merely an inquiry. She criticized the commission for having known about the issue since July of the previous year, when The Guardian first reported on the matter, but taking no action until now. The Charity Commission has informed both the police and HMRC about the scope of its inquiry. However, the Metropolitan Police’s war crimes unit confirmed that it is not currently investigating any charities related to donations to illegal settlements. Meanwhile, The Guardian recently disclosed that a British charity, Friends of Yeshivat Shavei Hevron, had sent nearly £200,000 to a religious school in Hebron between 2019 and 2024. The school is central to expansion efforts by the illegal Israeli settlement in the Palestinian city. Construction of a new dormitory was approved in June after far-right Finance Minister Bezalel Smotrich unilaterally revoked a longstanding international agreement on Hebron’s governance, granting Israel planning authority. Labour MP Abtisam Mohamed, who is part of the foreign affairs committee, expressed support for the investigation but stressed that evidence exists involving at least 32 charities engaged in what she described as an “abhorrent practice.” She urged the commission to investigate these additional charities swiftly and take decisive steps to halt such behavior. Funding illegal settlements, she argued, constitutes extremist activity tied to the displacement of Palestinians and is incompatible with charitable objectives. The Charity Commission has indicated that it intends to expand the list of charities under scrutiny beyond the initial eight. It has also committed to releasing the names of the charities once its findings are finalized. As the inquiry progresses, the regulator will examine the locations of the charities' partners and the recency of any alleged activities. The outcome of this investigation could lead to changes in how charities operate, particularly regarding their engagement with entities in disputed territories.