A proposed law to tax foreign political donations to NGOs by 80% has sparked alarm among organizations supporting Holocaust survivors, who warn it could cripple critical social services.

The bill, initiated by Likud MK Ariel Kallner, is to be brought for discussion on Wednesday in the Knesset's Constitution, Law and Justice Committee. It would impose an 80% tax on donations received from foreign political entities.

While the stated aim is to prevent foreign political interference in Israeli affairs, NGOs say the law would severely impact organizations that assist vulnerable populations, particularly Holocaust survivors, many of whom rely on international donations.

“This is not legislation against NGOs—it’s legislation against the weak,” a senior figure from one of the aid organizations said.

In response to criticism, Kallner stressed that the bill is not intended to harm service organizations.

Likud MK Ariel Kallner (credit: Courtesy)
Likud MK Ariel Kallner (credit: Courtesy)
“NGOs that do not engage in lobbying, public campaigns, or influencing policy will be excluded from the law,” he said. “The bill is intended to prevent foreign states from meddling in Israeli politics by funding NGOs that defend terrorists, slander IDF soldiers, assist illegal infiltration, and harm the Jewish identity of the State of Israel.”

He added that humanitarian organizations would be exempt.

NGO leaders fear harm to donations despite Kallner's assurances

Despite Kallner’s assurances, NGO leaders argued that the bill’s distinction is unrealistic and impractical.

“Any NGO that operates a service system must engage with government ministries, fight for budgets, and sometimes petition the courts to ensure rights—is that considered ‘influencing policy’?” a senior nonprofit figure asked.

Several major NGOs aiding Holocaust survivors have in recent years received substantial donations from international foundations, foreign governments and Jewish philanthropic organizations. These groups now fear that the proposed tax will drive away donors and endanger future funding.

“It’s already difficult to raise donations, and this law sends a message of delegitimization toward any social organization that works in cooperation with the world,” a senior NGO official said.

He added that the state has never fully met the needs of Holocaust survivors, and NGOs have stepped in to fill the gap.

“If the law passes, these services will disappear—plain and simple.”

NGO representatives also voiced concern that the law could damage long-standing relationships with Jewish foundations and Western governments.

“The foundations won’t wait to find out if they’re exempt—they’ll simply redirect the money to other countries. The damage will be immediate,” one senior figure said.