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Crosswinds Mall
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Can U.S. Jewish Funds
Be Spent In Territories?
UIPISDI '
WOLF BLITZER
GET RUULII.
31065 Orchard Lake Rd.
Hunters Square
Farmington 626-0102
Special to The Jewish News
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•
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EXPIRES SEPT. 2, 1988 — With This Ad
32, FRIDAY; AUGUST 26, 1988.
•
ashington — Ameri-
can Jewish fund-
raisers have defend-
ed their long-standing policy
of not spending tax-exempt
U.S. contributions to Israel in
the territories captured dur-
ing the 1967 Six-Day War.
They were responding to an
August 16 report on Israel
Radio suggesting that a rul-
ing by the U.S. Internal
Revenue Service actually per-
mitted the use of such funds
in the territories. The report
referred to IRS communica-
tions on the matter with
Republican Senator Alfonse
D'Amato and Democratic
Senator Daniel Patrick
Moynihan, both from New
York.
But fund-raisers from the
United Jewish Appeal and
the United Israel Appeal
(which channels UJA money
to the Jewish Agency in
Israel) insisted that the IRS
position on the matter — as
spelled out to the senators —
was by no means clearcut.
They also cited strong
statements by the State
Department which opposes
the expenditure of tax-exempt
dollars in the territories.
"It has been the opinion of
our legal counsel and our
leadership that it may not be
in our best overall interest to
test this matter right now
even though there are some
people who feel we should,"
one top Jewish fund-raiser ex-
plained.
Gush Emunim supporters
and other pro-settlement ac-
tivists in the United States
have undertaken a campaign
over the past year to press the
UJA and the UIA as well as
the Jewish National Fund to
allocate funds for Jewish set-
tlement activities beyond the
Green Line, in the territories.
In the process, they have
asked Moynihan and
D'Amato to question the IRS
on the legality of using tax-
exempt funds for such pur-
poses.
The pro-settlement activists
say that the excuse they have
so often been given — that
contributions for Jewish pro-
grams or institutions in the
territories (even including the
Old City of Jerusalem) are
not permissible because of tax
exempt status — remains to
be proven.
Hadassah Marcus of New
York, a pro-settlement ac-
tivist, maintains that there is
no legal impediment preven-
ting the use of U.S. contribu-
tions for development projects
in Judea and Samaria. She
criticized as false advertising
a JNF ad campaign last year
that showed the full map of
Israel and carried the slogan,
"U.S. JNF projects cover the
map of Israel." JNF has been
unwilling to support projects
in the territories and, in a let-
ter of complaint to the chari-
ty, Mrs. Marcus wrote: "It's
one thing not to use Jewish
money to rebuild the ancient
Jewish heritage; it's quite
another to lie to your con-
tributors and say that you do."
K
Sen. Alfonse D'Amato
She said this week that the
UJA and other charities use
a variety of excuses to justify
their policy but that there is
no legal basis for not spen-
ding American Jewish funds
in the territories.
In an April 2, 1987 letter to
D'Amato, the IRS said that
"the fact that qualified
organizations may be engag-
ed in spending their contribu-
tions outside the United
States does not disallow the
donors' deductions because
the donors' contribution is
nevertheless made to a
qualified organization in the
United States."
On the same day last year,
a special assistant to
Moynihan wrote to a pro-
settlement activist in the
Jewish community noting
that inquiries by the
senator's staff to the IRS
showed that "the question of
earmarking such funds for
projects in Jerusalem, Judea
or Samaria" is up to the
Jewish organizations.
"There does not appear to
be any basis for denying tax
exempt status for any funds
so earmarked," the letter,
signed by David Luchins of
Moynihan's staff, added.
A spokesman for the IRS
l l
CJ