Last Friday, the Canada Revenue Agency (CRA) announced that it has revoked the charitable status of the Islamic Society of North America (ISNA) Development Foundation, after an audit of its books produced evidence linking it to Pakistani terrorist groups. "The Government of Canada has made it clear that it will not tolerate the abuse of the registration system for charities to provide any means of support to terrorism," said a CRA press release.
The CRA, which is the Canadian equivalent of the IRS, issued the 71-page "letter of revocation," after auditing two years' worth of activity that took place from Jan. 1, 2007, to Dec. 31, 2009. Complete with flow charts, it detailed funding transactions between the IDF and the Kashmiri Canadian Council/Kashmiri Relief Fund of Canada (KCC/KRFC), a group the CRA considers non-qualified donees under Canada's Income Tax Act.
The CRA believes the IDF did this for the purpose of relinquishing control of the funds to the KCC/KRFC, who in turn sent money to the Pakistani-based Relief ISNA Development for Kashmiri Muslims (ROKM) for ostensible "relief work" in Kashmir. The IDF supplied official donation receipts to the donors, while it disbursed more than $280,000 to ROKM, either directly, or via KCC/KRFC.