Uncle Sam Cannot Touch Gemachim

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Thanks to the efforts of chareidi MKs led by Knesset Monetary Committee Chairman Moshe Gafni, legislation was made to exempt Israeli gemachim from having to supply the IRS with information about donors from the United States as the FACTA (Foreign Account Tax Compliance Act) would have required.

Unlike banks and other financial bodies, gemachim were classified as “public service bodies” and exempt from reporting.

Under a tight deadline to finalize the legislation, Gafni fought until the last minute for gemachim to get two years to organize their new status instead of the one year treasury officials initially demanded.

{Matzav.com Israel News Bureau}


  1. In other words, gemachim can now more easily be used for tax fraud, money laundering, and other illicit activities. Why is this a good thing?

    • i am curious seeing how you lean left. Do you now have a problem with all the illegal activities the left condones illegal immigration marijauna use etc…

  2. mr. hall, why is this your ready assumption? are you saying that baalei chesed are, by your definition, crooked? how dare you tar and feather gemachim?! i sincerely pray that you will never have to borrow money from anyone because i’m afraid no one will be home for you

  3. ” are you saying that baalei chesed are, by your definition, crooked? ”

    Of course not! But the yetzer hara is strong. And there will be nothing to prevent those who want to use them — or even are tempted to use them — for money laundering and tax evasion from doing so. There is simply no reason why these reports should not be made.

  4. I’ll preface this by saying that (1) I never agree with Mr. Hall and (2) I’m not a big fan of the US insinuating itself into everyone’s business around the world. However, I can’t imagine any legitimate reason why people would be lobbying the Israeli govt to not divulge information about gemach contributors. As Bernie Madoff said, “there’s no innocent explanation”.


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