UK charities under investigation for donations to illegal Israeli settlements: Report

British charities alleged to have donated funds to illegal Israeli settlements in the occupied Palestinian territory are under official investigation.

The Charity Commission for England and Wales said Wednesday that it will seek to establish the amount of charitable funds sent to illegal settlements, whether the spending was in furtherance of the charities' stated purposes, and whether any regulatory action is required.

The inquiry follows reporting by The Guardian, which last year revealed that two UK charities had transferred approximately £5.7 million ($7.6 million) to the Bnei Akiva Yeshiva high school in Susya, an illegal Israeli settlement in occupied Palestinian territory.

In June, Labour MP Melanie Ward filed a formal complaint with the commission alleging that 32 charities in England and Wales had donated at least £28 million ($37.3 million) to Israeli settlements that are illegal under international law.

The newspaper said it understands the investigation is a direct response to Ward's complaint.

Announcing the investigation, which will initially focus on eight unnamed charities, Stephen Roake, the commission’s assistant director of high-risk compliance, said: "Serious allegations have been made about UK charities operating in illegal Israeli settlements in Palestine, so our first step is to establish the facts. Only then can we determine if regulatory action is required, based on our findings and the evidence we see.

"Our fact-finding will also help us develop regulatory guidance for charities, which will to help ensure public trust and confidence in charities."

Release of charities' names

The commission said the eight charities are among those recently identified in concerns raised with the regulator. It said the inquiry will examine the location of their partners and how recently the alleged activities took place, adding that it will consider naming the charities when it publishes its findings.

The regulator also said it plans to expand the investigation to include additional charities over time.

According to the commission, it has shared information on the scope of its inquiry with police and HM Revenue and Customs. The London Metropolitan Police's war crimes unit said it is not currently investigating any charities in relation to donations to illegal settlements.

In June, then-Foreign Secretary Yvette Cooper told Parliament that she had asked the commission to investigate the issue, saying that "charity systems are abused to funnel support to illegal settlements" and that "some evidence suggests that rules are being broken." She also expressed concern about "UK gift aid [tax relief] being funneled to illegal settlements."

Responding to Cooper, Ward said she and 140 Labour colleagues want a ban rather than an inquiry.

She told lawmakers that the commission appeared to have been made aware of donations to illegal settlements last July but "has done nothing so far."

According to Israeli settlement watchdog Peace Now, there are currently 141 illegal settlements and 360 outposts in the West Bank, in addition to 15 settlements in East Jerusalem.

UN Security Council Resolution 2334 of 2016 says Israeli settlements in Palestinian territory occupied since 1967, including East Jerusalem, have no legal validity and constitute a flagrant violation of international law.

In a landmark advisory opinion in July 2024, the International Court of Justice declared Israel’s occupation of Palestinian territory illegal and called for the evacuation of all settlements in the West Bank and East Jerusalem.