Charity Commission investigates donations to illegal settlements

On August 4, 2026, the Charity Commission, the charity regulator for England and Wales, announced the opening of an investigation into resources sent to Israeli settlements classified as illegal under international law. The action follows a formal complaint by a Labour MP.

Investigations launched by the Charity Commission

The inquiry will initially focus on eight organisations that have not yet been publicly identified. As stated by Stephen Roake, senior compliance assistant for high-risk matters at the commission, "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."

Complaint that triggered the action

The measure responds to a complaint lodged by Labour MP Melanie Ward, who claimed that 32 charities had donated at least £28 million to illegal Israeli settlements. Ward said she and 140 colleagues from the Labour Party "wanted to see a ban rather than an inquiry" and criticised the apparent inertia of the commission since the first media disclosure in July of the previous year.

Scope and objectives of the inquiry

In addition to examining the initial eight charities, the commission indicated that it will expand the number of organisations under scrutiny as the process unfolds. The body also shared information about the investigation’s scope with the police and HM Revenue & Customs (HMRC). The Metropolitan Police’s war-crimes unit stated that, at present, it is not conducting an investigation into charities linked to donations to illegal settlements.

Parliamentary reactions

Former external secretary Yvette Cooper had asked the commission to investigate the issue, alleging that "charity systems are abused to funnel support to illegal settlements" and that "some evidence suggests that rules are being broken", as well as expressing concern about "UK gift aid [tax relief] being funnelled to illegal settlements". MP Abtisam Mohamed, a member of the foreign affairs committee, highlighted that "we know there is evidence of at least 32 charities engaging in this abhorrent practice. The Charity Commission must investigate them as well and move quickly to stamp out this behaviour altogether" and added that "Funding illegal Israeli settlements is extremist activity linked to the violence and dispossession of Palestinians and bears no relation to charitable activity."

Next steps and institutional cooperation

Upon completing the fact-gathering phase, the commission will assess the location of the charities’ partners and the dates of the alleged activities. The possibility of publicly releasing the names of the organisations will be considered when the results are published. Collaboration with the police and HMRC indicates a joint effort to ensure any violations are identified and, if necessary, sanctioned.

With information from The Guardian.