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Long answer
UNRWA is supposed to assist Palestinian refugees with their resettlement. They have utterly failed in this mission, as the number of people UNRWA considers refugees has dramatically grown over the last decades since UNRWA’s establishment. Instead, UNRWA came to unofficially support and enable Palestinian terrorists. The fact that UNRWA employees actually took part in the October 7th massacre is just a reminder of what this organization permits to happen under its supervision. As the people on the ground in Gaza, they obviously knew that all humanitarian aid goes directly to Hamas and is used for its military purposes. They also obviously knew that UNRWA teachers are teaching children to murder Jews and become martyrs. And yet UNRWA chose to ignore all of this, and made no steps to change. UNRWA is a complete failure and should be dissolved. No wonder western countries don’t want to finance an organization that enables terrorism.