Islamic Relief USA has filed a federal lawsuit seeking to formally sever its relationship with Islamic Relief Worldwide, following a congressional investigation into alleged links between the global network and terrorist groups.
The U.S.-based nonprofit filed its 113-page complaint on March 23 in the U.S. District Court for the Southern District of New York, stating it moved to distance itself from IRW amid mounting government scrutiny, including referrals from the House Ways and Means Committee to the Internal Revenue Service.
According to the lawsuit, U.S. authorities warned IRUSA that its tax-exempt status could be at risk if it continued working with IRW. The committee has alleged that IRW has “connections to terrorist entities, including Hamas, and a history of antisemitic behavior.”
IRUSA said it suspended its relationship with IRW in October and sought to negotiate a full separation, but claims IRW refused to cooperate. The complaint also alleges that IRW solicited donations in the United States without proper registration, creating confusion among donors.
The filing further accuses IRW of interfering with humanitarian programs funded by IRUSA, including an orphan sponsorship initiative, and of blocking audit requests tied to those projects.
IRUSA is seeking more than $6.4 million in damages and a court order voiding certain agreements between the organizations.
Rep. Jason Smith (R-MO), chairman of the Ways and Means Committee, stated that IRUSA’s move to cut ties reflects the impact of congressional oversight of the nonprofit sector.
“I hope other organizations that have been identified as part of our investigation will take note of this decision and take appropriate action to ensure they are not potentially violating their tax-advantaged status,” Smith stated.
