Australian taxpayers are subsidising donations to Israel’s military and to organisations operating illegal Israeli settlements in the occupied Palestinian Territories through a network of registered charities with deductible gift recipient (DGR) status, an MWM investigation has found.

Under Australia’s tax system, donations to DGR-endorsed charities reduce a donor’s taxable income, meaning the public indirectly contributes to the charity’s activities. Documents reviewed by MWM indicate that several Australian charities have raised and transferred funds to Israeli military units and to settlement-linked projects in occupied Palestinian territory.

The Chai Charitable Foundation reported more than $19 million in revenue in 2024, with the vast majority of its funding directed overseas. Registered with the ACNC in 2017, Chai says its purpose is “to alleviate poverty, distress and suffering in Australia and internationally.”

While the charity says it supports low-income families and “civilian victims of terror” in Israel, it has also hosted fundraising campaigns linked to organisations that openly provide equipment to the Israel Defense Forces (IDF).