Posts Tagged ‘501(c)(3)’

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Front group finance: recommended reading

May 23, 2013
  • Are tea party groups subjected to greater scrutiny than Islamic charities? A nonprofit consultant says yes (h/t creeping)… more>>
  • How Saudi charitable fronts pump millions of dollars via hawala into Kashmir to transform it into a valley of Wahhabism… more>>
  • Islamic charities have exploited America to fund Chechen jihadists since 9/11… more>>
  • No longer confined to the blogosphere, the Associated Press reports on the legal battle between a Christian publisher and a terror-linked Muslim syndicate… more>>
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Atlanta’s “largest and oldest” mosque faces tax sale

March 12, 2012

Legal notice from DeKalb Champion, Mar. 8, p. 20C

A tax lien has been filed against the Atlanta Masjid of Al-Islam, the self-proclaimed “largest and oldest Islamic community in Metro Atlanta.”  The owners of the mosque must pay about $6,000 to satisfy the lien and prevent the property from being sold on the courthouse steps of DeKalb County on Apr. 3.

The Atlanta Masjid normally pays about $10,000 in local property taxes a year for its property on 562 Fayetteville Road, but has only made a partial payment for 2011.  The mosque also owes smaller amounts on adjoining property it owns at 560 and 596 Fayetteville Road.

Details of Atlanta Masjid’s finances are not available to the public because the organization has no tax form 990 on file with the Internal Revenue Service.  Its website seeks zakat donations for the mosque, for Eid, and for the schools operated by the mosque.  The mosque has a “Majlis Ash-Shura Board” which appears to have marginal oversight over funding, but it does not appear to have a dedicated finance committee.  Daaiyah Shakir is listed as the mosque’s treasurer.

Atlanta Masjid caught the attention of Atlas Shrugs in 2008 for a potential violation of 501(c)(3) tax law by hosting a political event for Barack Obama onsite.

Despite its tax problems, the mainstream media is content to present only a positive image for Atlanta Masjid.  CNN has reported warmly on the mosque before, calling one of its Ramadan iftars “splendid,” and touting the mosque’s “community outreach.”  The Atlanta Journal-Constitution assured readers that Atlanta Masjid is “egalitarian, mainstream” (while showing a photo of male-only worship) during the mosque’s alleged 50th anniversary.

The mosque’s imam, Mansoor Sabree, made news in Georgia during the Ground Zero Mosque controversy for endorsing a mosque “anywhere, anywhere in America.”

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Funding jihad is not a tax-exempt activity

October 26, 2011

IRS Form 990, question 76:  does your charity engage in any other activities?  One Islamic charity’s answer:  does funding jihad count?

The First Circuit has reinstated the convictions of the three jihadists who ran the Massachusetts-based Care International, who argued that the IRS’s tax form for nonprofits, Form 990, is too vague.  Money Jihad has looked at a lot of 990s.  Overall, the wording on the tax form is pretty direct.  There may be some legal grounds to question whether the IRS is specific enough on certain concepts, but excluding the publication of your jihadist magazine from your list of activities raises a red flag (or the green flag of Islam or the black flag of jihad as the case may be).

Peter J. Reilly makes some great points in this piece from Forbes last month:

I both love and hate Form 990.  I hate it because it is a real pain to prepare and review.  I have to deal with it both for clients and also in my capacity as a volunteer.  One of the downsides of being a CPA is that when you want to help a not for profit, they usually rope you into being the treasurer or chairing the finance committee. I love 990′s for the information they provide about not-for-profits.  Most not for profits, except churches, are required to file them and they are public records… Whenever I write about a case that in any way involves a not-for-profit, I will look at its 990 and I find it often adds an interesting dimension as in this  donated to .  Useful as 990′s are, I would not have thought there was a role for them in the War on Terror.  Silly me.  The First Circuit’s decision in  has set me straight.

The case was an appeal of criminal convictions of Emadeddin Muntasser, Muhamed Mubayyid, and Samir Al-Mon.  The government was also appealing the District Court’s overturning of the jury verdict on some of the counts.  The case is largely about Form 990 with a particular emphasis on Question 76.  Question 76 asked if the organization has engaged in any activities not previously reported to the IRS.  Like supporting jihad for example.  That is not generally thought to be a valid exempt purpose.

The defendants’ twenty-four day jury trial focused on the circumstances motivating Muntasser’s formation of Care in 1993; the defendants’ failure to disclose some of Care’s activities, such as the publication of certain newsletters from 1993 to 1997; and Care’s support for, and promotion of, Islamic jihad and fighters known as “mujahideen.”  The government’s central theory at trial was that Muntasser had established Care in order to fraudulently obtain a tax exemption, so that contributions being used to finance mujahideen overseas could be deducted from individual tax returns as charitable donations.

Care was the successor to the Boston branch of  an organization called Al-Kifah -

Among its activities, Al-Kifah’s Boston branch published a pro-jihad newsletter entitled “Al-Hussam,” which translates from Arabic as “The Sword”; it sold books and audiotapes extolling the cause of jihad; and it promoted sermons and lectures by like-minded Muslim leaders. It also solicited substantial charitable donations through the publication of an annual Zakat Calculation Guide. 4 Although the organization advertised itself as a tax-exempt charity, it had never been granted charitable status by the IRS.

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IRS revokes CAIR’s tax-exempt status

June 28, 2011

The IRS has revoked the tax-exempt status of the Council on American-Islamic Relations.  CAIR hasn’t filed a single 990, a fairly simple tax form required for most nonprofit organizations to submit, in over three years!  (See our related coverage here from last year.)  This is in line with a pattern of slipshod accounting, misappropriation, unknown overheads, missing money, mysterious spending, and unacceptable financial controls by Islamic entities throughout the world.

The Investigative Project on Terrorism hints that CAIR did not file the required paperwork because it would reveal their reliance on foreign funding sources.  That is plausible because, if you were the attorney for CAIR, you too would probably make the decision that it’s better to lose your tax-exempt status than it would be to be prosecuted in federal court for violating FARA, the Foreign Agents Registration Act.  (CAIR’s FARA problem is documented here, which was exacerbated by CAIR’s servile request to Libyan looney-toon Muamar Qaddafi.)  Violations of FARA carry up to a five year prison sentence.

But as a co-conspirator with the Holy Land Foundation in its scheme to fund Hamas, CAIR could be concealing far worse truths than its Gulf revenue stream.  Missing 990s not only means that we don’t know CAIR’s funding sources, but we don’t know much about their expenditures either.  CAIR’s historic involvement in terror finance schemes is chilling.

From the Politico (which notes that CAIR lied to their own reporter for this story) on June 23:

CAIR loses nonprofit status

The Council on American-Islamic Relations has lost its nonprofit status, according to the Internal Revenue Service.

The civil rights group, long accused of ties to radical Islam, is on a list of 275,000 organizations who have not filed the requisite paperwork with the IRS to maintain nonprofit status. Tax law requires annual disclosure of assets, expenditures and salaries for 501(c) nonprofits. Both CAIR and sister organization CAIR Foundation have lost their status.

A CAIR attorney initially told POLITICO that its appearance on the IRS list referred to a defunct arm of the nonprofit, and that CAIR and CAIR foundation were unaffected — a claim that a review of the IRS documents did not support. CAIR then told POLITICO the IRS was to blame, citing a number of other errors that have occurred on the IRS list. However, CAIR could not produce their IRS disclosure forms for 2007 through 2010 — which are required to be open for public inspection.

“We are looking into all of these issues and are working with the IRS to clear things up,” CAIR spokesman Ibrahim Hooper told POLITICO. “CAIR was clearly not targeted or singled in any way by the IRS.”

CAIR was named an unindicted co-conspirator in a landmark terrorism financing trial in Texas. Some Islamic charities facing federal investigations have been advised by attorneys not to file IRS paperwork for legal reasons, but there is no evidence that CAIR is currently the target of a federal probe.

Incidentally, the move helps IRS catch up with its Canadian counterpart, Canada Revenue Agency, which has so far been more agressive on revoking the tax-exempt status of nefarious Islamic charities.

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FARA and the money for the Ground Zero Mosque

August 10, 2010

On Aug. 3, the fellows over at Radio Jihad had a lively discussion about the refusal of Imam Feisal Abdul Rauf to acknowledge where the $100 million for his Ground Zero Mosque is coming from:


The audio excerpt above from their show is about nine minutes long, but here’s a little summary:  hosts Vito Esposito, Alan Kornman, and “Scotty K” say that the $100 million didn’t just spring up from “Muslims in the neighborhood”–rather, it’s probably coming through channels such as Saudi Arabia, the Muslim Brotherhood, Islamic Society of North America, the North American Islamic Trust in Indiana, and Malaysia.  (I speculated myself in a comment on Creeping Sharia back in December that funds for the mosque were coming from Saudi Arabia and Malaysia.)

Because of the overseas funding, Radio Jihad calls for Rauf to register under the Foreign Agents Registration Act (more on FARA here) and open his books for review by government auditors.  However, the talk show hosts predict that Rauf will fight any disclosure or registration on the grounds of constitutionally protected religious freedom.

The gentlemen speculate that at this point it will probably take political intervention from a higher level–such as Peter King, Newt Gingrich, Sue Myrick, or Rick Lazio–to put a halt to the mosque project until Rauf comes clean. 

One of the Radio Jihad co-hosts also argues that Mayor Bloomberg would rather have the $100 million worth of economic activity brought by the construction project than to protect the safety of New Yorkers.  He draws an interesting parallel between the current situation and the Late Middle Ages, when Ottoman Turkey funded German princes to stoke the flames of the Protestant Reformation in order to divide Christendom.  Today, it’s Saudi money that is being used to divide the West.  Take a listen!

All the relevant conversation takes place in the above clip, but if you want to hear their full show click here.

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Welcome to Lilburn, Georgia

June 1, 2010
The future of America, Shia-style

Ashura "celebration" at Dar-E-Abbas in Lilburn, Ga.

Or maybe Lilburnistan.  Did you think that only Europe is being Islamized?

Lilburn is similar to many cities in America.  It has a cozy population of 11,000 in Gwinnett County about 15 miles outside Atlanta…  It also has at least four Islamic facilities each with colorful back stories.

The one pictured above, the A.G.A. Dar-E-Abbas Islamic Center, has a history of code violations.  Those violations are partly why a Dar-E-Abbas rezoning request was denied by Lilburn in a heated decision last fall.

Then there’s the “Nasfat of Atlanta,” also in Lilburn.  They seem to keep their noses cleaner than Dar-E-Abbas, although they promise on their website “to become renowned for quality da’wah,” which is Islamic proselytizing.  Nasfat also states that they will “not discriminate”…against Muslims.  There are no pledges on their website about discriminating against anybody else.

Next there’s a nonprofit corporation known as the Al-Rasoul Masjid & Center AMC IncThey’re currently in noncompliance with Georgia corporations laws for not filing necessary paperwork with the Secretary of State.  Lovely.

Finally, there’s the “Ali Center,” registered with the state as the Imam Ali (A.S.) Center.  The registered agent and CEO of the Ali Center is Kaiser Ali, but the actual owner of the property (according to property records for its address at 695 Beaver Ruin Road) is the Dawat-E-Hadiya of America.  That owner, although technically registered in California, is actually the corporate vessel of a foreign-based Shia Muslim sect.

If you ever feel like buying a nice piece of property with foreign funds, committing code violations on the premises, or failing to file required paperwork, just stop by Lilburn sometime.  A local imam will be happy to give you pointers.

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IRS may revoke tax-exempt status of Islamic charities in Ga.

May 17, 2010

At least five Islamic charities in Georgia are at risk for revocation of their federal 501(c)(3) tax-exempt status.  In 2006, federal legislation required most nonprofit organizations to file 990 forms annually regardless of how little revenue the organization took in.  If an organization fails to file its forms for three years, then it will lose its tax-exempt status.  That means the organization would have to pay taxes and that donations to the organization aren’t tax deductible.

The deadline for charities to file is today, May 17.  The Urban Institute’s National Center for Charitable Statistics has made data available on all charities that have not filed as of last month.  A review of the data by Money Jihad shows these organizations as non-filers:

  • American Muslim Alert Foundation Inc (Atlanta)
  • Madrasat AL-Huda Islamic School of Augusta
  • Majlis Eid Committee of Greater Atlanta Inc
  • Murid Islamic Community in Atlanta Inc
  • Baytul Barham (Duluth)

Many charities, even legitimate ones, are in danger of losing their tax exempt status.  However, given the murky track record of Islamic charities in the United States using zakat to fund overseas jihadists such as Hamas, the lack of any reports being filed by these groups with the IRS give particular cause for alarm.

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CAIR brags about tax-exempt status, then runs afoul of IRS

February 2, 2010

Scary accounting standards by Islamic organizations are not unique to Saudi Arabia, Pakistan, and BritainWorld Net Daily has exposed U.S.-based Council on American-Islamic Relations for its failure to file required disclosures with the Internal Revenue Service.  (Hat tip to Puneet Madaan).

But its delinquent filing hasn’t stopped CAIR from actively continuing to solicit donations and advertise itself as a valid 501(c)(3) organization.  (While CAIR technically remains tax-exempt, that status will be revoked if it fails to file 990s for another year.)

As of this posting, CAIR still has on its website 1) a lengthy explanation of how donations to CAIR qualify as zakat under Islamic law, and 2) references on several of its pages trumpeting their 501(c)(3) status.

CAIR made a fund-raising blitz in December to take advantage any Muslim taxpayers who wanted to increase their itemized deductions before the end of 2009.  Through Facebook and other media, national executive director Nihad Awad made this breathless appeal:

Earlier this week, I urged you to take advantage of the last few days of 2009 to make a tax-deductible donation to CAIR – and many people did.

Alhamdulillah (praise be to God), we’ve raised almost $25,000 so far. But we still haven’t met our goal of raising $175,000 by the end of the year to support CAIR’s important work.

I would like to thank all those who have already donated, and I ask those who can donate to do so in the remaining hours of 2009…

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Public charities & zakat for jihad

December 10, 2009

A new report from Stanford University reveals that whopping 99 percent of self-described public charities in the U.S. have their applications for tax-exempt status approved by the IRS.  The researchers found that “Oversight of the creation of nonprofit organizations, and the conferral of tax exempt privileges that accompany nonprofit status, is weak, bordering on non-existent” (p. 3).

But this cannot be read as a garden variety tale of government incompetence or neglect.  These findings pose grave risks for the laundering of zakat donations by Islamic “charities” without any front end scrutiny by the IRS.  Here’s an excerpt from the frightening study:

While the IRS has made efforts in recent years to improve oversight of the nonprofit sector by redesigning the tax forms which nonprofit organizations are required to file (if they earn more than $25,000 in revenue in any given year), little attention has been paid to the record of oversight in the determination of nonprofit status. The oversight at the entry point to nonprofit status, as we will show, is weak. Nearly every application on which a decision is rendered is approved.

We focus our attention on the fact that the IRS approves more than 50,000 applications for 501(c)(3) status every year and rejects only a very, very small number of applicants. Obtaining recognition by the IRS as a public charity is an embarrassingly easy thing to do. It is hardly an exaggeration to say that when it comes to oversight of the application process to become a public charity, nearly anything goes.

The problem is that for Islamic jihad and organizations such as Al Qaeda, the main revenue source is zakat funneled through “charities.”  Zakat is routed through mosques, Islamic charities, and even foreign states or political parties, sometimes for genuine charity for poverty alleviation, but all too frequently to support jihad.

It is bad enough that little scrutiny is given to these organizations by the U.S. (or by fellow non-Muslim nations of Europe and India), but it is extremely disturbing to learn that so few of the claims of charity status are verified in the first place.  Not only were, by extension, the vast majority of Islamic charities that claim tax-exempt status granted it, but their jihadist fellow travelers and donors get to write off their donations on their tax returns.

Meanwhile, Pres. Obama wants to loosen the minimal controls in place for zakat transfers.  Thus jihadist fund-raisers are given decreasing scrutiny, the IRS is auditing America’s poor.

Maybe I will go to a tea party after all!

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