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IU investigation finds Muslim Philanthropy Initiative broke no laws in 'sham charity' link

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The Muslim Philanthropy Initiative is headquartered at the Indiana University Lilly Family School of Philanthropy at IU-Indianapolis.

An Indiana University investigation found that its Muslim Philanthropy Initiative did not violate any state or federal laws in its past relationship with a Turkish nonprofit federally designated as a “sham charity.” 
 
Concerns about the partnership were raised on March 20, when eight Indiana state representatives wrote to IU questioning the connection between MPI, a department within the IU Lilly Family School of Philanthropy, and Hayat Yolu.  
 
According to an April 3 letter from the university to the state representatives, MPI began collaborating with Hayat Yolu at the recommendation of the U.S.-based nonprofit United Mission for Relief and Development.  
 
The initiative worked with Hayat Yolu on international fundraising training programs in Istanbul and Indonesia in July 2025 and January 2026. Hayat Yolu also reimbursed travel expenses for MPI Director Shariq Siddiqui related to the programs. 
 
On March 12, the U.S. Department of the Treasury designated Hayat Yolu as a “sham charity” that funnels money to Hamas and the Muslim Brotherhood. The letter states MPI has not engaged with the nonprofit since that designation. 
 
Following the designation, the Lilly Family School of Philanthropy suspended all new MPI partnerships and training activities and initiated a review of all the department’s current partners. 
 
“Our ultimate priority is to build on existing protocols and further enhance due diligence and oversight that ensures that IU engages exclusively with respected partners, both domestic and international, who demonstrate transparency and integrity,” the letter reads. 
 
The letter said the university will continue to review information to ensure it is not engaged with “international bad actors.” 

Lilly Family School of Philanthropy did not respond to request for comment. 

IU wrote that it is exploring ways to strengthen its due diligence and oversight processes to better identify and avoid potentially high-risk partnerships in the future. 
 
State Rep. Andrew Ireland, a Republican from Indianapolis, posted the letter on X on April 6. 
 
“I appreciate IU taking this seriously,” he wrote in the post. “These are good first steps, but there is more work to do.” 

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