BLOOMINGTON, Ind. — Indiana University has paused parts of a philanthropy program and launched an internal review after it was revealed the initiative worked with a nonprofit now labeled by the U.S. government as a front for terrorist financing.
The program in question, the Muslim Philanthropy Initiative (MPI), is housed within IU’s Lilly Family School of Philanthropy. It partnered in 2025 and early 2026 with a Turkish group called Hayat Yolu to run nonprofit training sessions overseas.
Earlier this month, the U.S. Treasury Department designated Hayat Yolu a “sham charity,” alleging it was part of a broader network channeling funds to Hamas and the Muslim Brotherhood under the cover of humanitarian work.
That designation has raised new questions about how the university vets its international partners.
University halts activity, launches review
University officials say they are moving quickly.
IU has stopped all training tied to the initiative, frozen new partnerships, and begun reviewing existing collaborations. The school says the Treasury designation triggered the action and that it is now taking a closer look at its screening process for outside groups.
The review is expected to focus on how partners are approved and whether current safeguards are strong enough, especially for programs operating abroad.
What the partnership involved
The collaboration between MPI and Hayat Yolu centered on professional training, not direct aid.
According to reports, the two groups co-hosted sessions on nonprofit management, fundraising strategies and leadership development. These included a workshop in Istanbul in July 2025 and another training event in Southeast Asia in January 2026.
At the time, Hayat Yolu had not been publicly flagged by U.S. authorities.
That timing matters. There is no public evidence that Indiana University or anyone involved in MPI knowingly supported Hamas or any affiliated group.
Lawmakers press for answers
Still, the situation has drawn attention from state lawmakers.
Several Indiana legislators are raising questions about how the partnership was approved, what vetting processes were used, and whether any red flags were missed, as reported by The Washington Free Beacon.
State representative Andrew Ireland (R.), a former deputy attorney general for the Hoosier State, said that Indiana University launched a “formal investigation” into the Muslim Philanthropy Initiative’s partnership with Hayat Yolu, a Turkish nonprofit that the Treasury Department sanctioned earlier this month for providing “significant material support to Hamas.” IU’s Lilly Family School of Philanthropy “is ceasing all training activities” and “reviewing all current partnerships” with the Muslim Philanthropy Initiative, a spokeswoman told Indiana Public Media.
Ireland and seven other Indiana lawmakers pressed the school about the Muslim Philanthropy Initiative after the Free Beacon reported its ties to Hayat Yolu. The initiative partnered with Hayat Yolu in July 2025 and January 2026 to host training events in Turkey and Indonesia aimed at helping Islamic nonprofits “refine their fundraising strategies, improve performance, and more effectively advance their missions.” The initiative, led by Shariq Siddiqui, thanked Hayat Yolu for its “generous support” in its recent annual report.
According to the Treasury Department, Hayat Yolu has been “involved in Hamas’ international funding network that enables Hamas to generate external revenue in direct support of Hamas’ military wing” and served as an “operational headquarters, banking and financial hub for the Muslim Brotherhood.”
Critics argue that even indirect collaboration with a group later tied to terrorism raises serious concerns. In their view, universities working in global philanthropy should be especially cautious about who they partner with.
Others, including some nonprofit experts, note that these situations are not always clear in real time. Organizations can appear legitimate until new intelligence or government findings emerge. But they add that such partnerships can unintentionally give credibility to groups that later prove problematic.
Broader questions about oversight
The episode puts a spotlight on a larger issue facing universities and nonprofits: how to navigate international partnerships in complex regions.
Programs focused on global giving often rely on local partners to operate effectively. But that also means taking on risk, especially when working across borders where transparency can be limited.
Indiana University now finds itself at the center of that tension.
As the review moves forward, the key question is not just what happened, but whether the school’s safeguards are strong enough to prevent a similar situation in the future.
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