UNRWA has a working definition of something they made up called "Palestine refugees" that have nothing to do with actual refugee status and is entirely for UNRWA to determine who is eligible to receive their services.
UNRWA does not define who is a refugee. It is an aid agency and its definition only defines who qualifies for aid.
Resolution 194 says refugees are those wishing to return to their homes. I assume that means anyone no longer living in their home. There is nothing saying anything about why they left.
What 194 actually means:
Israel’s chief reservation regarding the Arab Peace Initiative is the way in which the text addresses the issue of Palestinian refugees. Specifically, the Initiative calls upon Israel to affirm: “achievement of a just solution to the Palestinian refugee problem to be agreed upon in accordance with U.N. General Assembly Resolution 194.” Israelis have largely rejected this passage, believing that it in effect is calling for the “right of return” of Palestinian refugees to Israel, something that would destroy the Jewish character of the state. But a closer look at the Initiative indicates that its mention of 194 need not be the Achilles’ heel that Israel has made it out to be.
The Arab states’ — and Palestinians’ — inclusion in the Initiative of UNGA Resolution 194, adopted in the wake of the 1948 Arab-Israeli War, is less about the text of the resolution and more about the principle it represents. Resolution 194 addressed the refugee issue as follows:
“Resolves that refugees wishing to return to their homes and live at peace with their neighbors should be permitted to do so at the earliest practicable date, and that compensation should be paid for the property of those choosing not to return and for loss of or damage to property, which, under principles of international law or inequity, should be made good by the Governments or authorities responsible.”
To be sure, the Arab states have used this passage in Res. 194 in an effort to make the refugee issue fundamental to any Arab-Israeli peace agreement, and to further extract and mobilize sympathy from the Arab public. However, the Arab states are not chiefly concerned with Israel accepting the exact wording of 194, after all the text also calls for United Nations control over Jerusalem. They do, however, want Israel to accept the principle of addressing the plight of Palestinian refugees in the context of a comprehensive solution to the Arab-Israeli conflict.
In this regard, Israelis should not be fearful of the Arab Peace Initiative’s mention of UNGA Res. 194.
The resolution was adopted by the United Nations General Assembly — not the Security Council — and as such is not binding. Furthermore, it has not been accepted by all of the parties to the conflict.
(full article online)
Resolution 194 -- the Achilles' Heel of the Arab Peace Initiative | HuffPost
[All of those Non Binding Resolutions people insist are legal and binding, to make it go down the Jewish throats one way or another......tsk....tsk....tsk]
[Palestinians are to be compensated if they do not get to return to their homes and lands? Well, so do the nearly 1 Million Jews who were made to leave Arab conquered lands from 1920 on. Fair is fair

]