Pro-Israel media ‘watchdog’ fighting CRA’s attempt to revoke its charity status

This story is a collaboration between the Investigative Journalism Foundation and Future of Good.

A charity connected to the controversial group HonestReporting Canada, which claims to expose anti-Israel bias in news media, has launched two court battles against the attempted revocation of its registration by the Canada Revenue Agency (CRA).

HR Canada Charitable Organization (HRCCO) has filed challenges to the revocation in both the Ontario Superior Court of Justice and the Federal Court of Appeal, according to court records obtained by the IJF and Future of Good.

Documents filed in the Ontario court reveal the CRA notified the charity in January that its registration would be revoked in 30 days, a process that has now been delayed indefinitely due to the court proceedings. 

The CRA says it found that HRCCO was “not carrying out any charitable activities.” 

Auditors alleged “the organization appears to have purposefully acted as a conduit for HonestReporting Canada (HRC),” which is not a charity, according to a July 14, 2025 letter outlining the CRA’s findings.

“Additionally, it appears that the organization is accepting donations for, and is issuing charitable donation receipts on behalf of, HRC. The organization appears to then use its resources to pay for HRC’s operations.”

HonestReporting Canada rallies its 70,000 members to complain about what it describes as anti-Israel bias in journalism, claiming that traditional antisemitism “has morphed into a cloaked anti-Jewish hatred where the State of Israel is a stand-in for Jews.” Critics, however, allege it operates “targeted harassment campaigns” against reporters and “constantly defames journalists and media outlets that take a critical view of Israel.”

HRCCO is challenging the constitutionality of the CRA’s power to regulate charities, arguing that under the Constitution Act, “the establishment, maintenance and management,” of charities lies exclusively with the provinces, according to a Feb. 19 notice of application in the Ontario court. Similar arguments have been made in an ongoing court case launched by a Christian charity in B.C.

HRCCO asked both the federal and provincial courts to restrain the government from making the revocation official by publishing it in the Canada Gazette. 

Justice Papageorgiou Decision – April 24, 2026 by ElishaDacey

In Ontario, a judge initially denied the charity’s motion, writing that HRCCO didn’t submit evidence in support of its arguments or do a cursory analysis of the relevant law. But in May, the charity was granted leave to appeal that decision, and the court has ordered the government to pause publication in the meantime, while also suspending HRCCO from issuing tax receipts.

In its application to the Federal Court of Appeal, HRCCO described revocation as a “draconian measure” and alleged tax officials did not provide enough information or time for the charity to understand and respond to their concerns. It goes on to say that revoking HRCCO’s registration “will cause irreparable harm to the organization, its directors, the Canadian Jewish community, and the broader Canadian public.”

HR Canada Motion to Appeal – May 7, 2026 by ElishaDacey

While the court battles are underway, HRCCO remains a registered charity. CRA spokespeople declined to comment, citing confidentiality provisions in the Income Tax Act. 

However, the federal government has previously argued in court filings that constitutional challenges to the CRA’s power have been rejected by the Federal Court of Appeal, which found charity revocation is a matter of federal taxation.

Representatives of HRCCO and HonestReporting Canada have not responded to requests for comment.

Michael Fegelman, the executive director of both HRCCO and HonestReporting Canada, filed an affidavit in March in support of the Ontario court challenge. In it, he said the charity plays an increasingly vital role in keeping Canadians informed about a well-documented surge in antisemitic hate crimes and in equipping the Jewish community with resources to combat this trend.

Fegelman wrote that he believes “there is an organized campaign to challenge the charitable registration of various entities devoted to countering antisemitism or otherwise affiliated with Jewish philanthropists or doing work in or relating to Israel in any manner.”

Michael Fegelman Affidavit – March 17, 2026 by ElishaDacey

In particular, he pointed to complaints filed with the CRA by the human rights group Just Peace Advocates, in partnership with Writers Against the War on Gaza, both calling for an audit of HRCCO. Those complaints alleged the charity was promoting misinformation and harassing journalists and private citizens.

“I believe that the CRA audit of HR Canada was precipitated by [Just Peace Advocates]’s campaign against HR Canada, and that that campaign was driven by antisemitic bias rather than any genuine concern over alleged non-compliances with the Income Tax Act,” Fegelman wrote.

In a joint statement, Just Peace Advocates and Writers Against the War on Gaza Toronto said they were relieved to learn the CRA has conducted an audit.

“The request for the CRA to investigate HonestReporting Canada is grounded in both Canadian and international law and came alongside ample pieces of evidence as to their disqualifying activities,” the groups said.

“It should be a profound mark of shame that Canadian tax dollars have been subsidizing HRC’s funders for this long — donations earmarked for doxing, misinformation and anti-Palestinian racism.”

CRA alleges charity promotes one-sided point of view

HR Canada Charitable Organization was first registered in 2019, and CRA records show its stated purpose, in part, is “conducting and compiling data, as well as short and long term media analysis surveys, about racism, anti-semitism and discrimination.” 

The charity has insisted that it is a separate entity from HonestReporting Canada, according to correspondence with the CRA included in the Ontario court records.

However, as recently as nine months ago, the website for HonestReporting Canada directed supporters to fund its work by donating to HRCCO. And in their July 2025 letter, CRA auditors pointed out that the two organizations share an executive director, digital director, assistant director, director of operations and research analyst.

The CRA audit letter reveals tax officials had warned HRCCO after it applied for registration that monitoring the Canadian media for antisemitism “would not be considered exclusively charitable as it does not fall within one of the four categories of charity and does not provide a charitable public benefit.”

The charity amended its stated purposes to focus on the advancement of education, according to the letter. 

CRA Revocation Letter – Audit of HR Canada Charitable Organization – July 15, 2025 by ElishaDacey

CRA auditors have acknowledged that media monitoring is not HRCCO’s formal purpose, according to a Jan. 29 notice of intention to revoke filed with the Ontario court documents. 

“However, this is precisely the source of our concern: the organization has used its charitable resources to carry out media monitoring activities regardless,” the notice states. 

To that point, the HRCCO website currently includes a vision statement setting out its goal to be “a watchdog for Canadian media.”

And earlier this year, the charity released an AI-driven research report alleging a “consistent, overwhelming narrative imbalance” in CBC’s coverage of the Israel-Hamas war. The paper alleged the public broadcaster’s reporting ”minimizes and abstracts Israeli and Jewish experiences while privileging Palestinian perspectives and views.” 

One journalism professor described the research methods as “dubious” and said the report was used to spread misinformation about the national broadcaster.

In an attempt to prove they were engaged in educational charity work, HRCCO representatives provided auditors with examples of podcasts, YouTube videos, webinars and social media campaigns they said the charity had produced. But all of the examples were published using HonestReporting Canada’s accounts, the CRA’s notice points out.

On top of those concerns, auditors wrote, “the audit revealed that the activities do not appear to further the advancement of education in the charitable sense. Rather, they appear to be advancing a particular viewpoint while omitting information necessary for a balanced and comprehensive understanding of the subject matter.”

The correspondence contained in the Ontario court filings includes promises from HRCCO to take corrective measures to address the CRA’s concerns. 

But the CRA maintains the actions taken and answers provided by HRCCO did not alleviate its concerns.

In the January revocation notice, tax officials noted that a few months after the audit results were sent to HRCCO in July 2025, three “backgrounders” appeared on the charity’s website with the headings “Fake Post 1,” “Fake Post 2” and “Fake Post 3.” Each post contained the same article, with a description of the charity at the end.

“However, the description actually refers to HRC [HonestReporting Canada] and is the same information that HRC uses on its articles,” the appendix reads.

“It appears that, in an attempt to maintain its registered status, the organization purposely created webpages that contained false/misleading information to provide the impression that it conducts its own activities.”

At one point, auditors had proposed issuing a $336,145 fine to the charity for providing “unacceptable non-incidental private benefits” to HonestReporting Canada as well as a U.S. non-profit. That potential penalty was abandoned when the CRA chose to revoke HRCCO’s registration.

Irreparable reputational damage

In its application to have the CRA’s revocation powers declared unconstitutional, HRCCO alleges “the basis of the minister [of revenue]’s determination to revoke HR Canada’s charitable registration concerns the management of HR Canada — rather than legitimate concerns that may be properly characterized as tax matters.”

Ken Rotman Affidavit – March 17, 2026 by ElishaDacey

The application also claims that revocation would cause lasting harm to HRCCO’s directors, who will be declared “ineligible individuals” as a result. One current director, private equity investment manager Ken Rotman, filed an affidavit that says this designation would seriously damage his business interests and security clearances with various governments.

“Clients entrust me with large amounts of money precisely because of my reputation as a reliable, honest and astute businessman. As an ineligible individual, on the other hand, I will be associated with individuals who have been convicted of crimes or who are members of listed terrorist entities,” Rotman wrote.

Rotman did not respond to a request for comment.

HRCCO’s claims have not been tested in court. The charity is currently not accepting donations through its website.