Letter to Supporters: Background on CRA issues & appeal
Letter to Supporters: Background on CRA issues & appeal
(July 24, 2024)
Thank you for your ongoing support of the Jewish National Fund of Canada. We are so grateful that you are part of our family in our efforts to enhance the land of Israel and the lives of Israel’s citizens.
We are writing to advise you that JNF Canada is exercising our right to be heard in court and we launched legal proceedings yesterday in the Federal Court of Appeal to contest the Canada Revenue Agency’s (CRA) wrong and unjustified decision to revoke our charitable status.
In our appeal, we intend to make the arguments:
The CRA erred in its findings;
The procedures itself are unfair in that it does not allow us to test the facts before it goes to the Federal Court of Appeal;
There is a reasonable apprehension of bias in the audit.
We should stress that we will continue to advance our mission and mandate while the case is before the courts. We will continue to organize events, fundraising campaigns, missions to Israel and more. Your donations will be eligible for a charitable receipt while our appeal is before the courts.
Background
The CRA audited JNF Canada in 2014 related to our work in 2011-2012. We appealed their intention to revoke our charitable status while at the same time striving to reach an agreement with the CRA on a constructive path forward. Unfortunately, our overtures to have a dialogue in order to negotiate an agreement were rejected – CRA officials refused to meet in person with JNF Canada officials throughout this ordeal - and the CRA confirmed its intention to revoke on June 26th.
JNF Canada’s Charitable Purpose
JNF Canada has been audited five times since our incorporation in 1967, and no issues of significance were raised prior. Yet, as a result of its 2014 audit, the CRA is now maintaining that our original main charitable object is unacceptable.
In 1967, JNF proposed to dedicate “funds for the employment of indigent labourers – recent immigrants in the main – on various work projects, for which they receive daily stipends . . .” At the time Revenue Canada, the predecessor of the CRA, wrote: “we now have received satisfactory evidence and assurances that the activities presently carried on in Israel are and will continue to be carried out in a way which meets the requisites of those principles”. Subsequently it advised us that “[on] the basis of the information now supplied, we consider that the Jewish National Fund of Canada (Keren Kayemeth Le’Israel) Inc. qualifies as a charitable organization.”
Our position is that it is unjust for CRA to revoke a charity because a charitable object that it accepted almost 60 years ago is now no longer considered to be a charitable object.
The CRA Approach
As outlined on its web site, the CRA is committed to exploring compliance measures such as education letters, compliance agreements and sanctions before revoking an organization’s charitable status. The CRA not only skipped steps 1-3, it also refused to entertain our suggestions of new objects for our charity or to discuss a compliance agreement.
As a Zionist-inspired organization, JNF Canada has many vociferous antisemitic detractors who we believe have influenced the decision-making process in this matter. We believe that arguably there is a reasonable apprehension of bias on the part of the CRA. This evidence of bias comes from the CRA’s own records, which show that the public pressure on the CRA and the Minister of National Revenue to revoke JNF’s status was an important consideration within the chain of authority at the Charities Directorate. A review of the record would leave a reasonable person with the impression that this pressure resulted in a biased decision.
Summary
In summary, we have demonstrated our willingness to work with CRA, even on items with which we disagree on their legal nature. When the CRA raised concerns, JNF Canada addressed them. As a result, we remain puzzled and frustrated with the CRA’s decision to revoke our charitable status and its refusal to enter into a constructive dialogue with us. Why would a venerable organization with decades of history, many CRA audits, tens of thousands of donors, offices across the country, endorsements from religious leader, thought leaders, and elected officials from across the political spectrum at the federal, provincial and municipal level be issued a letter of revocation without any substantive discussion or negotiation with our leadership?
Again, please rest assured that while our issue is before the courts, JNF Canada will continue to advance our charitable work, including collecting donations and issuing charitable receipts.
Now more than ever our extended family in Israel needs JNF Canada. The charitable needs in Israel are enormous and JNF Canada will be there for the land and people of Israel thanks to you. We will not give up in our efforts to fulfil our mission and mandate.
We are incredibly proud of our charitable impact and thank you, our loyal supporters, and our professional staff for your ongoing support during this process.We will keep you informed of developments in the months ahead.
Nathan Disenhouse
President, JNF Canada
Lance Davis
Chief Executive Officer, JNF Canada
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