Promotion of legislation targeting civil society organizations

The Associations Bill (Amendment – Donation from Foreign State Entity)” seeks to impose an 80% tax on most donations received by Israeli nonprofit organizations from foreign governments or official state institutions, and to divest the courts of their authority to hear petitions submitted by organizations whose primary funding comes from such entities. The proposed law is a major violation of fundamental rights, including freedom of association, freedom of speech, and the right to access the courts. It also undermines the judiciary by reducing judicial oversight of government actions (which are the subject of petitions filed by the targeted associations). In practice, the bill aims to silence organizations that are critical of the government by eliminating their financial resources and blocking their ability to challenge government decisions. Such a law would curtail the ability of Israeli human rights organizations opposing the occupation to operate, to the point of threatening their survival.

In February 2025, the bill passed a preliminary reading, and in July 2025, the press reported on a possible new version that would reduce the tax to 23% and includes an exemption for organizations that declare they do not engage in political activities, are not executive members of a political party or political entity, and do not intend to criticize government policy.1 In other words, a tax exemption in exchange for loyalty to the regime. The bill is being promoted in the Knesset despite public criticism and opposition from human rights organizations.

For further reading, including the position paper from the Association for Civil Rights in Israel (ACRI), see: Bill to Tax Donations from ‘Foreign State Entity’ is Unconstitutional, Anti-democratic, and Discriminatory 

For information in English see: A Hollow Democracy