Each member NGO obtains separate funding for its activities and projects from donors, including foreign governments, international organisations, charities, etc., which all form part of the
international aid to Palestinians. In January 2020, the European Union (EU) inserted a clause into their new grant contracts to prohibit recipients from working with and funding organizations and individuals designated on the EU's terror lists; Article 1.5 of Annex II listed in the "General conditions applicable to European Union-financed grant contracts for external actions". The PNGO vehemently opposed the new requirement: According to the PNGO, the EU sent a "clarification letter" on 30 March 2020, which specified that the EU provision only applies to persons explicitly named in its restrictive list and emphasized that no Palestinian persons are included in that list, and that the provision is limited to "financial procedures", adding: "The EU does not ask any civil society organization to change its political position towards any Palestinian faction or to discriminate against any natural person based on his/her political affiliation". The EU reaffirmed its position in April 2021, saying the EU must "thoroughly verify" that its funds are not "allocated or linked to any cause or form of terrorism and/or religious and political radicalization." Any funds that did go to any person or organization with terrorist ties must be "proactively recovered, and recipients involved are excluded from future union funding." According to research by
NGO Monitor, a pro-government Israeli monitoring group focused on sources and uses of Palestinians' civic society organizations' funding, has alleged that at least 70 NGO officials are affiliated with the
PFLP and that between 2014 and 2021 numerous European governments gave over €200 million to the NGO network, which they claim is linked to the PFLP - some of which was used to finance terrorism. ==Outlawing of Palestinian NGOs by Israel==