The Charity Commission has opened a statutory class inquiry into concerns about charitable funds allegedly being sent to organisations operating in Israeli settlements in the occupied Palestinian territories.
The regulator’s investigation will initially examine eight unnamed charities registered in England and Wales. It intends to establish how much charitable money was transferred, where it went and whether the spending furthered the organisations’ stated charitable purposes.
The Commission has stressed that its first task is to establish the facts. Opening an inquiry does not mean that wrongdoing has been established, and the charities under examination have not been publicly identified.
Inquiry follows complaint concerning 32 charities
The investigation follows a formal complaint from Labour MP Melanie Ward, who alleged that 32 charities in England and Wales had sent at least £28 million to projects or organisations connected with Israeli settlements.
That £28 million figure is Ward’s assessment and is not a finding made by the Charity Commission. The regulator has initially selected eight charities after considering the location of their overseas partners and how recently the alleged activity took place.
It has indicated that the inquiry may be extended to additional charities over time and that it will consider naming the organisations when its findings are published.
“Serious allegations have been made about UK charities operating in illegal Israeli settlements in Palestine, so our first step is to establish the facts,” Stephen Roake, the Commission’s assistant director for high-risk compliance, said.
“Only then can we determine if regulatory action is required, based on our findings and the evidence we see.”
What will the Charity Commission examine?
The inquiry will consider the amount and use of the funds, whether trustees acted in accordance with their charities’ purposes and whether regulatory action is necessary.
The Commission has also shared information about the scope of its work with HM Revenue and Customs and the police. That does not mean a criminal investigation has been opened. The Metropolitan Police’s war crimes unit has said it is not currently investigating charities over donations to settlements.
Trustees of UK charities are required to ensure that their organisation’s money is used only to further its charitable purposes. Working internationally is not prohibited, but trustees remain responsible for checking overseas partners, controlling funds and managing legal and reputational risks.
Government pressure for action
The issue had already reached Parliament. In June, then foreign secretary Yvette Cooper told MPs that she had asked the regulator to investigate concerns that charity and Gift Aid systems may have been used to support settlements.
Ward and other Labour MPs have called for the investigation to extend to all 32 charities cited in her complaint. Foreign Affairs Committee member Abtisam Mohamed welcomed the opening of the inquiry but urged the regulator to act quickly and examine the wider group.
Israel’s settlements in the West Bank, including East Jerusalem, are regarded by the United Nations Security Council and most of the international community as having no legal validity under international law. Israel disputes aspects of that international legal position and maintains historical and security claims concerning the territory.
A wider argument over British links to Israel
The inquiry arrives amid increasing scrutiny of British organisations’ financial and commercial connections with Israel and the occupied territories.
Coventry South MP Zarah Sultana recently challenged Liverpool FC over sponsors which campaigners allege have links to Israel’s actions. In a separate intervention, MPs and peers including Kim Johnson urged Prime Minister Andy Burnham to take further action over Palestinian rights.
Those political campaigns are separate from the Charity Commission’s regulatory process. The Commission must assess each charity against charity law and the evidence relating to its own activities, rather than determine the wider political dispute.
The inquiry’s eventual findings will therefore be important. They should establish whether charitable money was properly controlled and used for legitimate charitable purposes, while giving the organisations concerned an opportunity to respond to the allegations.