The Central Fund of Israel (CFI) has long served as a conduit for tax-exempt donations from American donors to organizations in Israel and the occupied Palestinian territories. At the helm of this operation is Jay Marcus, who has overseen the channeling of millions of dollars to hundreds of Israeli organizations, including some linked to controversial entities like Canary Mission. This report examines Marcus’s role in CFI, the organization’s financial operations, and the ethical questions surrounding its support of groups accused of targeting pro-Palestinian activists and suppressing free speech.

Background and Leadership of the Central Fund of Israel

Jay Marcus serves as the president of the Central Fund of Israel, a New York-based 501(c)(3) registered non-profit organization founded in 1979 by his parents, Hadassah and Arthur Marcus. Originally established with the mission of ensuring that “100% of all donations reached the recipients” in Israel, the organization has grown to become one of the largest financial pipelines from the United States to Israeli causes.

Marcus runs CFI from a family textile business that began in New York City. According to investigative reporting, the fund was initially hidden “in the back room of a fabric company in midtown Manhattan” before moving to “a back room of J. Mark Interiors on Central Avenue in Cedarhurst, Long Island”. Marcus himself is described as “a gray-haired settler with a kippah on his head and a second home in Efrat, an illegal settlement in the occupied West Bank”. As the director of CFI, Marcus oversees an organization that has significantly expanded its financial reach over the years. In 2013, he reported that CFI’s donations reached approximately $19 million, and by 2019, the organization’s total revenue exceeded $48 million

CFI’s Financial Operations and Scope

Under Marcus’s leadership, the Central Fund of Israel has developed into what critics describe as “by far the largest of a number of US non-profit organizations that funnel money to Israeli extremist groups”. The organization’s financial operations are extensive, with CFI claiming to support over 500 charitable causes in Israel as of 2023.

The fund operates through a specific mechanism that allows American donors to receive tax deductions for their contributions to Israeli organizations. According to a 2010 report by The New York Times cited in the search results, “Dozens of West Bank [settler] groups seem to view the fund as little more than a vehicle for channeling donations back to themselves, instructing their supporters that if they want a tax break, they must direct their contributions there first”.

This financial structure has proven particularly valuable for organizations that might otherwise struggle to secure tax-exempt donations directly. The CFI’s tax-exempt status means that donors receive a tax write-off due to its recognition as a 501(c)(3) organization, even when supporting controversial groups.

Connection to Canary Mission and Controversial Organizations

One of the most contentious aspects of Jay Marcus’s leadership of CFI involves its connection to Canary Mission, an organization described as “a massive blacklisting and doxxing operation directed from Israel that targets students and professors critical of Israeli policies”.

In 2018, an exposé by The Forward revealed that the Jewish Community Federation of San Francisco had funded Canary Mission through the Central Fund of Israel. This funding came in the form of a one-time grant of $100,000 made in 2016 from the Helen Diller Family Foundation. The complex financial arrangement worked as follows: the Diller family, through San Francisco’s Jewish Community Federation, “donated” their money to the Central Fund in New York, received a tax rebate, and then the Central Fund transferred the money to Megamot Shalom’s bank account in Israel, which was the front for Canary Mission.

Beyond Canary Mission, CFI under Marcus’s direction has supported a range of other controversial organizations. These include:

• The Od Yosef Chai yeshiva, which came under scrutiny after a rabbi there reportedly said it is permissible to kill Palestinian babies

• Honenu, a legal aid group which supports Israelis charged with or convicted of violence against Palestinians.

• Women in Green and Im Tirtzu, groups with right-wing political activities

• The Israel Land Fund, which has been involved in settlement activities in occupied territories

Controversies and Ethical Questions

Jay Marcus’s role as director of CFI has placed him at the center of significant controversies regarding the ethical and legal implications of the fund’s activities.

Tax-Exempt Status and Political Activities

A central criticism concerns whether CFI should maintain its charitable status in the US while funding organizations that may contradict American foreign policy or engage in politically controversial activities. In August 2021, seven Democratic members of Congress urged Treasury Secretary Janet Yellen to review the tax-exempt status of CFI and similar groups, noting concerns about supporting “serious breaches of international law.”

The Canary Mission Controversy

The connection to Canary Mission has been particularly problematic. Canary Mission creates and publishes detailed profiles of individuals it deems anti-Israel, including students and professors. Critics argue this constitutes doxxing and intimidation.

The relationship between Canary Mission and Israeli authorities raises additional concerns. According to investigative reporting, individuals profiled on Canary Mission have been detained or deported when attempting to enter Israel. This suggests the information collected by Canary Mission is being used by Israeli authorities to restrict entry to the country.

Legal experts cited in the search results suggest that Americans who financially support Canary Mission through channels like CFI might be “potentially committing a serious crime, acting as agents of a foreign power”, particularly given Canary Mission’s apparent connections to Israeli intelligence services.

Recent Developments

As recently as March 2024, Canary Mission introduced a new section titled “Uncovering Foreign Nationals,” apparently in response to then-President Trump’s executive order addressing antisemitism. This development raised further questions about the extent to which Canary Mission might be influencing immigration enforcement against critics of Israel.

Conclusion

Jay Marcus’s leadership of the Central Fund of Israel represents a significant chapter in the complex financial relationship between American donors and Israeli organizations. While CFI presents itself as a charitable organization focused on ensuring donations reach their intended recipients in Israel, its operations under Marcus’s direction have raised serious questions about transparency, the ethical use of tax-exempt status, and the targeting of individuals critical of Israeli policies.

The connection to Canary Mission, in particular, highlights the controversial nature of some of the organizations supported through Marcus’s CFI. As director, Marcus oversees a financial channel that has been criticized for potentially enabling harassment and suppression of free speech while offering American donors tax benefits for supporting organizations engaged in activities that may contradict U.S. foreign policy objectives.

As scrutiny of organizations like CFI continues, Marcus’s role in directing this influential financial pipeline remains a subject of significant interest and controversy for those concerned with the intersection of charitable giving, political activism, and international relations.