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Tamil Foundation’s tax exemption revoked

March 15, 2009

Catching up on Nonprofit Law Blog this weekend, I came across an interesting tidbit.

(c/o ABC News Online)

The Tamil Foundation, which the U.S. Department of Treasury says is a front for the Sri Lanka-based Liberation Tigers of Tamil Eelam (as reported by Reuters), had its tax-exempt status revoked last month.  This follows the similar suspension of tax exemption for the Tamils Rehabilitation Organization.

All this means that the U.S. Treasury is afraid donations to these groups are filtered to the Tamil Tigers in Sri Lanka.  Donors to these U.S. groups then cannot take a charitable deduction as they might be do for donations to other 501(c)(3)’s.

Are any of you readers from the Cumberland, Maryland area?  Any of you know more about these groups and how they use charitable donations?  What do you think of U.S. regulations limiting donations to certain international groups?

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