Caving in to blackmail and/or terrorist demands in nothing less that complicity and only serves to encourage terrorism. Countries that choose to donate monies to the benefactors are fully entitled to make sure that the benefactors meet the requirements/entitlements of the donors and that the money will be used in conjunction with the express will of the donor and not diverted to purposes counter to the will of the donor. It is abundantly clear the PAL refuses to mee the requirements of USA & EU. There is absolutely no obligation for the donors to contribute to the PALS and in fact it is not difficult to find people in far greater need (e.g. Darfur).
Islamic State militants blow up ancient Arch of Triumph in Palmyra (Reuters)
from the article: World Bank says underestimated depth of Palestinian crisis