These Muslim groups not only enjoy tax-exempt status, but their reputations as charities and foundations often allow them to escape scrutiny, making it easier to hide and move their funds to other groups and individuals who threaten national security.
This tax-free support for the machinery of terrorism was planned long ago by Islamists. A document seized last decade in a raid of al-Arian’s home bears that out. Translated from Arabic, “The Charter,” as it is called, provides for an “Organization/Law Studies Section” whose job it would be to study the legal aspect of establishing charitable organizations in America that would front for Jhadi operations, investigators say.
Al-Arian founded Muslim charities that co-mingled funds with the Saudi-backed Safa group of charities in Virginia. Investigators say the charities have availed themselves of exemption from federal tax while abusing the requirements for tax-exempt status to avoid scrutiny of terror-tied financial transactions and associations.