A US Senator has raised concerns that one of the largest Muslim charities in the country might be under investigation by the IRS due to alleged connections with terrorist groups, potentially resulting in the loss of its tax-exempt status.
Recent federal tax returns indicate that the American Council of Islamic Relations (CAIR) accrued over $26 million from two of its wealthiest branches in Washington, DC, and California in 2023. This surge in funding has sparked questions about how the money will be allocated.
“CAIR presents itself as a civil rights organization that defends Muslim rights in America,” noted Senator Tom Cotton (R-Ark.) in a letter to IRS Commissioner Billy Long dated August 4. “However, there is significant evidence pointing to CAIR’s deep connections with terrorist organizations.”
Cotton emphasized that such ties should bar CAIR from retaining its nonprofit status, asserting that this status is a privilege, not a right.
In November 2023, shortly after Hamas’s attacks on Israel on October 7, CAIR co-founder Nihad Awad made statements about the deaths of 1,200 Jews, suggesting that Palestinians were eagerly trying to break free from oppression and reclaim their land. He later claimed his remarks were taken out of context.
Cotton’s letter highlighted that during the attacks, Awad suggested that Palestinians were “happily looking” at their situation. This has raised eyebrows and led to further scrutiny.
CAIR has since rejected the allegations, labeling Cotton’s demand a politically motivated stunt and asserting that it is a legitimate civil rights organization.
Founded in Washington, DC, in 1993, CAIR was linked to Hamas back in 2008, as US authorities had previously charged leaders of the Holy Land Foundation for Relief and Development, a Texas-based nonprofit. This case became notable for being one of the largest terrorism financing cases in US history.
Cotton referenced this lawsuit, citing that CAIR was identified in court documents as associated with the Muslim Brotherhood’s Palestinian Committee. He mentioned that the founder of CAIR reportedly attended a conference for Hamas supporters in Philadelphia.
Moreover, a watchdog group filed a complaint with the Department of Justice in March, pointing to missing funds that were promised to the organization. This money, earmarked for helping underprivileged immigrants in California, seemingly vanished.
A California-based advocacy organization, the Intelligent Advocacy Network, confirmed that a substantial amount, specifically $7,217,968, had been directed to one of CAIR’s branches but could not be accounted for.
Cotton has requested an investigation into whether CAIR genuinely fulfills charitable purposes, stressing that nonprofits are not subject to taxes on donations under US Internal Revenue Code 501(c)(3).
“The IRS holds significant authority to assess whether an entity’s operations align with its tax-exempt purpose,” Cotton stated, adding that tax-exempt status should not be granted to organizations with ties to terrorism.
