Indiana University shut down its Muslim Philanthropy Initiative following months of scrutiny over the program's relationship with a "sham charity" that funneled money to Hamas as part of the terrorist group's "international fundraising network."
The closure comes after the Washington Free Beacon reported that the initiative, housed within the IU Lilly Family School of Philanthropy, organized training conferences in July 2025 and January 2026 with the Hayat Yolu Association, an Istanbul-based nonprofit the Treasury Department sanctioned in March for raising money "in direct support of Hamas' military wing," the al-Qassam Brigades.
The Muslim Philanthropy Initiative had thanked Hayat Yolu for its "generous support" in its annual report.
The revelation prompted a coalition of eight Indiana lawmakers, led by state representative Andrew Ireland (R.), to demand a formal university investigation into the partnership. Ireland announced Monday that the university had permanently shuttered the program.
"Indiana University made the right decision by closing the Muslim Philanthropy Initiative," said Ireland. "A taxpayer-supported university should never lend its name, expertise or credibility to an organization connected to the financial network of a terrorist group."
The closure deals a heavy blow to an organization that said it "aspires to have a transformative impact on Muslim philanthropy" in the United States and abroad. Muslim Philanthropy Initiative worked closely with some of the largest Islamic nonprofits in the United States. The CEO of Islamic Relief USA and a cofounder of the Institute for Social Policy and Understanding served on the initiative's advisory council until its demise.
According to Ireland, a former deputy attorney general for Indiana, IU's investigation found that Hayat Yolu reimbursed Muslim Philanthropy Initiative executive director Shariq Siddiqui for airfare, lodging, meals, and other travel expenses related to the conferences, which were held in Istanbul and Jakarta.
The events were designed to teach Islamic nonprofits and other NGOs more effective fundraising and organizational management strategies.
"As we have done in Turkey, we are working to enhance the capabilities of our partners in Indonesia," Hayat Yolu Deputy director Ahmad Abu Adam said during the Jakarta conference, according to an event report. "This includes learning new techniques in management, leadership, and fundraising based on the latest research."
Muslim Philanthropy Initiative has caused headaches before for IU.
In 2022, the program hosted a conference on Islamic fundraising that featured Sami Al-Arian, a former professor deported from the United States after pleading guilty to conspiring to provide services to Palestinian Islamic Jihad, a terrorist group. Following public criticism, Lilly Family School of Philanthropy dean Amir Pasic acknowledged the school had failed to conduct adequate due diligence before inviting Al-Arian and pledged stronger review procedures.
Indiana University did not respond to a request for comment.
