Donations from 5 local banks are under fire

Gifts to Israeli defense charity called unfair

December 24, 2004

BY JEWEL GOPWANI and NIRAJ WARIKOO
FREE PRESS STAFF WRITERS

Some in metro Detroit's Arab-American community are wondering why five local banks recently donated to a nonprofit group that aids Israeli soldiers.

The group, part of a national nonprofit that raises money for social, educational and recreational programs for Israeli soldiers and their families, took out a full-page ad in an October issue of the Detroit Jewish News, naming Comerica Bank, Bank One, Huntington National Bank, National City and Standard Federal Bank among dozens of companies as generous sponsors.

The ad prompted a community leader to send letters to banks asking why they made the tax-deductible donations to a group associated with what many Arab-Americans consider an occupying force in the West Bank and Gaza Strip. The donations also resulted in protests last week at some of the banks in Ann Arbor and a prominent article about the issue in the Arab American News.

The donations give the appearance of a double standard, said Imad Hamad, regional director of the American Arab Anti-Discrimination Committee, who is convinced the same institutions wouldn't donate to groups associated with Arab defense forces.

"These financial institutions should be more careful, more sensitive not to put their nose in the middle of unnecessary debate because unfortunately, it's a losing situation to them," Hamad said.

But the Michigan Friends of the Israeli Defense Forces has nothing to do with military action, so it shouldn't be an issue, said Tamir Oppenheim, executive director of the group.

"We are taking care of the welfare of the Israeli soldiers. We are not taking care of anything that concerns with military action or violence," Oppenheim said. "We are not buying any ammunition, any bullets. We are taking care of widows. We are taking care of children who lost their fathers."

The group's Web site shows its capital projects include cultural centers, briefing rooms, as well as sports and recreation centers for soldiers.

The banks would not discuss the details of the donation, but in at least two cases, the donations did not violate any policies.

At Comerica, a specific business unit made the donation to foster a business relationship, said Wayne Mielke, vice president of corporate communications.

Comerica would not give the amount of the donation.

"The donation was provided by a Comerica business unit in response to a request from a significant customer," he said.

The corporation's giving guidelines support donations to arts and educational causes and ban most donations to political or religious causes, Mielke said.

But, Mielke said, "Business units do have a modest amount of discretion to make contributions in support of their customer relationships," he said.

The case is similar for Bank One. One of the bank's commercial banking divisions donated $5,000 to the Michigan Friends of the Israeli Defense Forces for a fundraising dinner, said Bank One spokeswoman Charlotte Gilbert-Biro.

National City said it would not comment on donations. Huntington National Bank and Standard Federal Bank could not be reached for comment.

Oppenheim would not say how much money the banks donated. But the ad listed seven levels of sponsorship. Bank One, Comerica and National City were listed as Chief of Staff sponsors, a level trumped by Standard Federal Bank, listed as a Prime Minister sponsor.

Hamad contacted all five banks after learning of the donation asking for a response. He said the donations give the impression of bias.

"In order to work with communities, they have to manage to create a very balanced, comprehensive, inclusive relationship. Any selective approach. . .will not help them gain people's trust, loyalty and business," Hamad said.

Most banks discussed the issue with Hamad.

"I have every reason to believe that this will not be repeated," Hamad said.

Oppenheim said he isn't worried the situation will keep companies from donating to the group. "We are not doing any wrong things. I think we are working on a legitimate and good cause. Our people will always open their hearts for us," he said.

Hamad said Bank One was slow to respond, which has prompted some Bank One customers, including Hamad's committee, to close accounts there.

Gilbert-Biro said the committee's initial contact did not reach the correct person, but the company responded once it learned of the inquiry.

Bill Thomson, a professor of psychology at the University of Michigan-Dearborn, organized a protest last Friday in Ann Arbor against some of the banks. "Our purpose is not to embarrass the banks, but to make it clear that if they are going to do these kinds of things, there will be consequences for this," Thomson said.

Contact JEWEL GOPWANI at 313-223-4550 or NIRAJ WARIKOO at 248-351-2998.