New Tax Authority Directive Could Threaten Fundraising for Chabad Yeshivos in Israel
A new directive from the Israel Tax Authority is raising concerns among Chabad yeshivos across Israel, after institutions were instructed to verify the military status of their students or risk losing their eligibility for one of the country’s most important charitable tax benefits • Read More
A new directive from the Israel Tax Authority is raising concerns among Chabad yeshivos across Israel, after institutions were instructed to verify the military status of their students or risk losing their eligibility for one of the country’s most important charitable tax benefits. The move is expected to have significant financial implications for Torah institutions that rely heavily on tax-deductible donations.
In recent days, yeshivos throughout Israel—including Chabad yeshivos—have begun receiving official letters requiring them to submit sworn declarations regarding the military status of their students.
Under the new policy, institutions must certify that none of their students are classified as draft evaders or have failed to regularize their status with the Israeli military authorities. They are also required to provide complete student lists, including names and ID numbers, together with documentation verifying each student’s military status. Acceptable documents include military service identification, discharge certificates, exemption certificates, or confirmation of a future enlistment date.
According to the notices, institutions that fail to comply could lose their approval under Section 46 of Israel’s Income Tax Ordinance.
Section 46 allows donors to receive tax credits for contributions made to approved nonprofit organizations and is considered one of the most important tools enabling yeshivos and other charitable institutions to raise funds. Losing that status could significantly impact fundraising efforts and place additional financial pressure on many yeshivos.
The directive comes amid the ongoing legal and political fallout surrounding the status of yeshiva students following the expiration of Israel’s longstanding draft exemption framework. Since the Israeli Supreme Court ruled that blanket exemptions for yeshiva students could no longer continue without new legislation, government agencies have increasingly tied benefits and funding to compliance with military service regulations.
Officials at several Torah institutions warn that the new requirements could create serious challenges, particularly for yeshivos whose student bodies include young men with unresolved draft status. Chabad institutions, along with other yeshivos throughout Israel, are now reviewing the directive and preparing responses as they seek to preserve their Section 46 certification and avoid disruptions to their fundraising efforts.
Many in the Frum community view the directive as the latest step in a broader government campaign targeting the Torah world following the collapse of the previous draft exemption framework. Rather than addressing military service through legislation, state authorities are increasingly using financial and regulatory measures to pressure yeshivos, threatening their ability to raise funds and continue operating.
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