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.