The Charity Commission is considering a request to remove War on Want’s charitable status over its boycott of Israel.

In a formal complaint to the commission, activist group Jewish Human Rights Watch (JHRW) said the anti-poverty charity should be downgraded because it is carrying out a “demonisation of the state of Israel” which is “a proxy war” against British Jewry.

JHRW launched in February with a protest outside the north London offices of War on Want. The charity was a founding member of the Boycott, Sanctions and Divestment movement.

JHRW director Jonathan Neumann said: “War on Want has long ago abandoned any pretence at fighting poverty and now seems obsessed with supporting the BDS with their hate campaign”.

War on Want executive director John Hilary rejected the complaint. He said: “War on Want has repeatedly been assured by the Charity Commission that we are completely justified in campaigning for the rights of the Palestinian people, and we will continue to do so.”

His organisation was cleared of wrongdoing by the commission in 2009 after the Zionist Federation made a similar complaint.

The commission has until August 25 to decide whether or not to open an investigation.