Exclusive | Controverisal Muslim charity may lose non-profit status for role in anti-Israel protests

The California chapter of the largest Muslim charity in the US may lose its tax exempt status over its organization of anti-Israel protests, The Post has learned.

The powerful tax-writing Ways and Means Committee of Congress is calling upon the International Revenue Service to investigate the Council on American-Islamic Relations in the state, its largest stronghold in the US.

CAIR “institutionally endorsed and materially supported several encampments on college campuses across California, some of which resulted in violations of the law,” says the Jan. 13 letter from acting US Secretary of the Treasury Scott Bessent, which has been seen by The Post.

The letter was also signed by IRS Chief Executive Officer Frank Bisignano and Missouri Rep. Jason Smith, chair of the Committee on Ways and Means.

CAIR California’s Chief Executive Officer Hussam Ayloush responded with the chapter’s own letter to the IRS, denying any wrongdoing and condemning “hate, terrorism and extremism in all forms.”

In a comment to The Post, a lawyer for the group said: “Contrary to the false claims made by Mr. Smith, CAIR-California is a respected civil rights organization with a long record of lawful advocacy and cooperation with government agencies.”

Last year, two government watchdog groups demanded a high-level investigation into CAIR California over the disappearance of more than $7 million in federal cash that was earmarked to help resettle impoverished immigrants.

In what appears to be a sleight of hand, the money — $7,217,968.44 — was sent to CAIR-Greater Los Angeles and not to CAIR-CA, which was the only group eligible to receive it, according to studies by the Intelligent Advocacy Network (IAN) and the Network Contagion Research Institute.

The Greater Los Angeles chapter of the Muslim organization is not a registered nonprofit and not eligible to handle charitable donations, IAN claimed in its complaint.

“Not only is CAIR-CA suspected of endorsing the disturbing of classes, shutting down of college campuses and impeding of Students’ access to education,” but one recent report found that CAIR-CA solicited food and supplies to support prolonging these encampments,” the letter says.

Last year The Post revealed CAIR and another charity solicited donations in October 2024 to provide interest-free loans to students who participated in anti-Israel protests, cutting them checks for $1,000.

After initially denying that any CAIR entity funded activists involved in protests, the group issued a “correction” on its website noting that the payments were routed through its national headquarters instead of a state affiliate.

Last year, Texas governor Greg Abbott designated CAIR a terrorist organization along with the Muslim Brotherhood. CAIR is suing the state, saying the designation infringes on its First Amendment rights.