Thursday, January 16, 2025
Last Thoughts on Supporting Warriors as a Charitable Purpose
Every country grants tax exemption for supporting its own troops. Humanitarian support, I mean. Care packages. That can be half-way justified by the assertion that supporting one's own troops relieves the government's burden. But the other half that ought to be addressed is whether facilitating war can be charitable. Never mind about that right now. The Service would never think of sanctioning a charity that sends care packages to U.S. troops. Nor would any country. We here in America must be the only country that thinks supporting warriors is a charitable purpose for which tax exemption is authorized as long the charity supports the right side, even if that means supporting another country's troops.
We allow tax exemption for charities that support our allies' troops too. If not as a matter of law than as a matter of policy. I'm pretty sure the Service would never seek to revoke exemption for a U.S. charity that supports Israeli or Ukrainian troops. I am almost as sure the Service would revoke exemption for a U.S. charity that supports Russian troops, and I am certain it would revoke a charity's exemption for supporting Hamas fighters. Most of the other former colonies don't think supporting someone else's warrior is a charitable activity for which tax exemption is appropriate. And all of them, of course, think supporting irregular troops is supporting terrorists.
I told you last week that the Canadian Revenue Agency revoked a charity's exemption for supporting IDF soldiers fighting in Gaza. CRA said its ok to support Canadian troops but nobody else's. Not even allies' troops. The Charity Commission recently did the same thing. It issued a cease and desist to an East London charity that was raising funds to support IDF troops fighting in Gaza:
OFFICIAL WARNING OF THE CHARITY COMMISSION FOR ENGLAND AND WALES
to CHABAD LUBAVITCH CENTRES NORTH EAST LONDON AND ESSEX LIMITED (1123001) (the ‘Charity’)
dated the
8 January 2025
The Charity Commission for England and Wales (the ‘Commission’) issues the Official Warning under section 75A of the charities Act 2011 (the ‘Act’), on the following grounds:
Section 75A(1)(b) of the Act – a breach of trust or duty or other misconduct or mismanagement has been committed in connection with a charity. The Commission considers that a breach of trust and/or duty and/or misconduct and/or
mismanagement has been committed in connection with the Charity, as follows:
1) By raising funds to support a soldier of a foreign military, the Charity has acted outside of its objects.
2) The trustees failed to act in the best interests of the Charity and safeguard its reputation in their decision-making.
Action that the Commission considers should be taken to rectify the misconduct and/ or mismanagement and/ or breach of trust
The trustees are to:
a) Ensure that all of the Charity’s current activities, including its fundraising, are in furtherance of its objects and for a charitable purpose.
. . .
Failure to remedy the breach of duty and/or misconduct and/or mismanagement specified above may lead to further regulatory action being taken by the Commission.
Here is some background from the Jewish Telegraphic Agency:
The Chabad Lubavitch Centres North East London and Essex raised about $2,300 for a soldier in the Israel Defense Forces in late 2023. The group’s modest fundraiser was one of countless such efforts organized by Jews around the world on behalf of Israeli soldiers fighting in Gaza. But raising money for a soldier of a foreign military is illegal under U.K. law. Members of the public opposed to the fundraising effort filed 180 complaints against the organization, according to the Charity Commission, which began investigating in December 2023. “It is not lawful, or acceptable, for a charity to raise funds to support a soldier of a foreign military,” Helen Earner, director for regulatory services at the Charity Commission, which oversees charities in England and Wales, said in a statement.
It is remarkable, but not surprising, that we in America think differently than our colonial cousins. For us, supporting war is charitable not just when charities support our warriors, but also when charities support our allies' warriors.
darryll k. jones
https://lawprofessors.typepad.com/nonprofit/2025/01/last-thoughts-on-supporting-warriors-as-a-charitable-purpose.html