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ADC Files Complaints with Treasury Department against US Tax Exempt Organizations Raisings Funds for West Bank Settlements

posted on: Mar 27, 2009

Today, the American-Arab Anti-Discrimination Committee (ADC) filed multiple administrative complaints with the US Department of the Treasury, including the Internal Revenue Service (IRS), requesting investigations into the activities of organizations claiming tax-exempt status under section 501(C)3 of the US Tax Code yet allegedly raising funds for the development of illegal settlements in the occupied West Bank. Among other allegations, the ADC complaints allege that these organizations are using assets and income in direct violation of their addressed purpose, and to support illegal and terrorist activities abroad.

The construction of settlements in occupied territory is illegal under international humanitarian law. The use of tax-exempt status to raise funds for these types of activities is also illegal under US law. Further, it is a central part of stated US policy toward the Arab-Israeli conflict that settlement expansion and construction must stop. In filing its complaints, ADC seeks to ensure that US tax laws are not being exploited, and violated, by certain organizations which are allegedly using their tax-exempt status contradictory to stated US policies on this issue.

Israeli settlements in the West Bank, including the system of segregation roads, walls and checkpoints which surround them, continue to debilitate life for Palestinians in the occupied territory. Every American administration since the Carter Administration has been critical of Israeli settlements in the West Bank. Most recently, Secretary of State Hillary Clinton criticized Israeli government initiatives to expand these settlements. More information on the challenges associated with Israeli settlement construction and detailed information on the settlement enterprise can be read in the recently-released ADC-Research Institute’s issue paper on this subject.