Tax-exempt status of nonprofit tied to lefty violence under the microscope
A conservative watchdog group is pushing federal regulators to investigate the tax-exempt status of a major nonprofit that has been allegedly bankrolling violent protests for years.
The Center to Advance Security in America (CASA) is requesting the Internal Revenue Service (IRS) investigate the Progress Unity Fund (PUF), a registered 501(c)3 nonprofit based in California, according to a letter obtained by the Daily Caller News Foundation. CASA argues that PUF is violating its tax-exempt status due to its financial support of the ANSWER Coalition, a group behind several high-profile violent protests and allegedly tied to extremist elements.
“CASA has filed a request for review of the tax exempt status of Progress Unity Fund which is the primary fiscal sponsor of the ANSWER Coalition,” CASA Director James Fitzpatrick said in a statement provided to the DCNF.
“ANSWER engages in violent and potentially illegal activity, particularly during its many extreme and unruly demonstrations throughout the Washington DC region,” Fitzpatrick continued. “ANSWER activists have assaulted law enforcement, destroyed federal property, and even have ties to radical pro-Hamas groups.”
Founded in 2001 in San Francisco, California, PUF bills itself as an anti-racist organization that was “established to help break down the barriers of divisiveness and discrimination that exist in the world, and replace them with a sense of solidarity.” The nonprofit also financially supports organizations tied to pro-abortion activists and has overlapping membership with socialist activists, according to Influence Watch.
The ANSWER Coalition, an acronym for Act Now to Stop War and Racism, is a far-left activist group founded in the wake of the September 11 attacks, which has protested against the “occupation of Afghanistan” and numerous other U.S.-led military conflicts against autocratic regimes, according to its website. The group lists PUF as its fiscal sponsor on its donation page.
PUF does not list any lines of contact on its website. The ANSWER Coalition did not immediately respond to a request for comment from the DCNF.
At issue is ANSWER’s involvement in anti-war protests have turned violent and its alleged connections to Hamas and the Iranian government. In one high-profile incident, the group organized the “Arrest Netanyahu” rally on Capitol Hill in July 2024, a protest that burned American flags, defaced property with anti-Israel graffiti and ended with their their protest permit being pulled after clashing with law enforcement. Sixteen demonstrators were arrested during the protest.
The violent demonstration caught the attention of the House Committee on Natural Resources, igniting an investigation into the incident and the groups involved. Several congressmen penned a letter in October 2024 to Brian Becker, the national director of ANSWER Coalition.
“ANSWER and its partner organizations, including Students for Justice in Palestine (SJP) and [American Muslims for Palestine] AMP, have well-documented connections to Hamas and Iran,” the lawmakers stated in their letter. “For example, SJP and AMP founder Hatem Bazian raised money for KindHearts, which was investigated and had its assets frozen due to coordination with Hamas and Hamas officials.”
“Furthermore, the Biden-Harris White House acknowledges that Iran is involved in funding U.S.-based anti-Israel organizations and protests,” the lawmakers continued. “These Iran and Hamas-backed organizations include CAIR and AMP, which partnered with ANSWER to protest on July 24, 2024.”
The House Committee on Natural Resources demanded the ANSWER Coalition hand over all internal communication it potentially had with any individual associated with Iran or its terrorist proxies, to include Hamas.
Other watchdog groups, such as the Anti-Defamation League, have connected SJP and AMP to Hamas and highlighted members’ past glorification of Hamas atrocities. Salah Sarsour, an AMP convention chairman and board member, was arrested and imprisoned by Israel authorities in 1995 for supporting Hamas.
To qualify for tax-exempt status under Section 501(c)(3), an organization is required to operate exclusively for exempt purposes, not engage in unlawful activities and not substantially support lobbying or partisan campaigning, according to the IRS.
In its letter to the IRS, CASA cited other ANSWER-led demonstrations that allegedly turned violent in November 2023 and June 2024. The conservative group, which bills itself as a nonpartisan organization dedicated to improving the safety of Americans, argues that the PUF is disqualified from its tax-exempt status due to its support of this allegedly unlawful activity.
“Based on the above allegations and the evidence provided in support, we believe that the American people are entitled to a full investigation into this urgent matter,” CASA stated to the IRS.
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