Indiana University campus on Dec. 2, 2025. Photo: USA TODAY NETWORK via Reuters Connect

Indiana University disclosed the results of an internal investigation this week into a controversial partnership with the Muslim Philanthropy Initiative, confirming reports that the organization maintains ties to the Palestinian terrorist group Hamas. 

In a letter dated April 3 to Indiana state lawmakers, university officials said the inquiry was launched after concerns were raised about the organization’s coordination with the Lilly Family School of Philanthropy. The review focused on the Muslim Philanthropy Initiative’s connections with the nonprofit group United Mission Relief and Development as well as entities linked with Hayat Tahrir al-Sham (HTS), a militant group from northwest Syria.

Formerly an al-Qaeda affiliate, HTS was proscribed by the US government until last year, when it’s designation as a foreign terrorist group was revoked.

Indiana University’s Muslim Philanthropy Initiative (MPI) operates as part of the school’s philanthropy school. MPI focuses on research, education, and professional training related to Muslim philanthropic traditions, an area it describes as historically underexamined in academic and nonprofit sectors. 

The initiative offers workshops on fundraising and philanthropic leadership, with an emphasis on Islamic and Muslim charitable practices. Since its founding, MPI says it has trained more than 3,500 nonprofit professionals across more than 30 countries, disseminating programming which includes webinars and an annual symposium dedicated to contemporary Muslim philanthropy and civil society. The initiative’s stated mission is to equip nonprofit leaders, organizations, and communities with research and practical tools to better understand and develop Muslim philanthropy.

According to the university’s findings, the Muslim Philanthropy Initiative worked in 2025 with United Mission for Relief and Development to organize training sessions in Istanbul and Indonesia. That organization recommended Hayat Yolu as a local partner. At the time, according to the university, staff relied on assurances that the group was legitimate and conducted its own limited vetting.

However, on March 12, the US Treasury Department designated Hayat Yolu, effectively barring Americans from engaging in transactions with the organization. The designation raised alarm about the university’s prior involvement, even though the trainings occurred months earlier. The department also issued a statement describing Hayat Yolu as one of three Turkish nonprofit organizations that “have provided significant material support to Hamas.”

According to the statement, overseas “sham charities” such as Hayat Yolu are a “key element” in how Hamas fundraises. The department added that the group provides banking and financial support for the Muslim Brotherhood, some of whose branches have been designated as terrorist groups.

Indiana University stressed that its Office of the General Counsel determined no state or federal laws were violated, noting that all activity predated the Treasury prohibiting American involvement with the group. The university also stated it immediately ceased any engagement once the designation was announced and suspended related programming.

Still, the findings highlight what critics may see as a troubling lapse in judgment at a time when US institutions face increasing scrutiny over indirect links to extremist networks. Pro-Israel advocates and national security analysts have long warned that charitable and educational partnerships can be exploited by actors connected to terrorism, particularly in regions where oversight is limited.

The university itself acknowledged shortcomings in its report. Investigators found that Indiana University relied too heavily on decentralized vetting processes and government lists, rather than conducting deeper, centralized due diligence on high-risk international partnerships.

In response, Indiana University outlined a series of reforms aimed at preventing similar situations. These include expanding the authority of its Research Security Office, implementing stricter review procedures for international partnerships, and requiring additional training for faculty and staff involved in global programs.

The university is also reviewing oversight of the Muslim Philanthropy Initiative specifically, including whether to integrate its activities more closely into other institutional structures to ensure tighter control.

Indiana state Rep. Andrew Ireland spearheaded the effort to probe MPI and expressed appreciation for the university taking steps to address the issue.

🚨 BIG UPDATE: After our letter demanding answers, Indiana University confirmed its Muslim Philanthropy Initiative partnered with and accepted travel benefits from a Hamas-linked “sham charity.”

Now IU is:
✅ halting all training activities and new partnerships
✅ overhauling… pic.twitter.com/ECUE6Go5Re

— Andrew Ireland (@AndrewIrelandIN) April 6, 2026

The episode comes amid heightened sensitivity in the United States over any institutional ties to organizations operating in conflict zones or linked to extremist groups hostile to the US, Israel and their allies. While the university maintains it acted in good faith based on the information available at the time, the case underscores how quickly reputational and security risks can emerge.

Indiana University officials said they are committed to ensuring future partnerships “demonstrate transparency and integrity.”