Donations Sent to Terrorists: CRA Revokes Charity Registration

On September 20, the Canada Revenue Agency (CRA) announced that it would revoke the registered charitable status of the Islamic Society of North America (ISNA) Development Foundation.

The charity has purportedly committed a myriad of infractions, including funding a Pakistan-based non-governmental organization that is related to Hizbul Mujahideen.

According to a recent audit performed by the CRA, the ISNA failed to comply with the requirements of the Income Tax Act (the Act) for its continued registration, specifically sections 230 to 231.5; issued a receipt for a gift or donation otherwise than in accordance with the Act; and failed to file an information return as required by the Act.

 “Our analysis of the information obtained during the course of the audit has led the CRA to believe that the Organization had entered into a funding arrangement with the Kashmiri Canadian Council/Kashmiri Relief Fund of Canada (KCC/KRFC), non-qualified donees under the Act, with the ultimate goal of sending the raised funds to a Pakistan-based non-governmental organization named the Relief Organization for Kashmiri Muslims (ROKM) without maintaining direction and control” said a spokesperson for the CRA.

The Relief Organization for Kashmiri Muslims (ROKM) is the charitable arm of Jamaat-e-Islami, which is a political organization that contests the legitimacy of India’s governance over the state of Jammu and Kashmir. A quick internet search reveals that the website of ROKM is offline. You can still see the preview of the website from the search page though, stating: “Appeal for earth Quake Victims Of Kashmir. Powerful and killer quake hit the subcontinent ripping apart land and life, many areas in…”.

Just how much money was sent to the terrorist groups in Pakistan? The CRA fears over $280,000. The ISNA “facilitated the transfer of resources that may have been used to support the efforts of a political organization . . . and its armed wing” said the CRA in a news release.

The ISNA has been troubled internally for years, with the long-time head Mohammad Ashraf being accused of running the charity like his own fiefdom and not allowing input from other directors. In March of this year, the ISNA sued him and two relatives, alleging that he misappropriated $400,000 and used the money to buy his daughter a house.

Read more about the troubled organization and the CRA’s response to the recent audit—click here.