WASHINGTON (Reuters) - Muslim charities and organizations in the United States say they are the target of a government "witch hunt" since Sept. 11, 2001, which is intimidating donors and hampering their work.
Required by their faith to pay "zakat," or alms for the needy, Muslims say the ripple effects of the government's hunt for terrorist funds are hurting their community at its core and making them feel like suspects.
They say the official designation of three U.S. Muslim charities as suspected sponsors of terrorism, coupled with what they consider rising anti-Muslim discrimination since the 2001 attacks by Islamic militants, has put them in the firing line simply because of their religious affiliation.
Charities also complain about high levels of secrecy surrounding the designations, and say excessive scrutiny and hefty costs to meet strict new U.S. regulations mean a smaller percentage of donations is now really reaching those in need.
"I feel like we are suspect, having done nothing wrong," said Laila al-Marayati, board member of charity KinderUSA. "People just assume that by definition if you're Muslim, you're going to have something to do with terrorism ... We're under the assumption that we're under surveillance all the time."
Dalia Hashad, an attorney for the American Civil Liberties Union advocacy group, said: "To say that the Muslim community, and certainly Muslim charities, are receiving extra scrutiny is not an exaggeration, and I don't think the word witch hunt is inappropriate to describe what the government is doing."
An inquiry by the Senate Finance Committee into the activities of 25 Muslim groups -- including the three already frozen by officials -- was the latest example of "guilt by association," Islamic groups say.
The committee asked the Internal Revenue Service in December for records including donor lists for the 25 groups "to conduct oversight on the issue of organizations, particularly tax exempt organizations such as charities and foundations, which finance terrorism and perpetuate violence."
The IRS has not yet supplied the information, a committee spokeswoman said.
Some nongovernmental groups tracking Muslim charities said they were surprised by many of the names on the list that they said had not been linked to terrorism before, such as the Islamic Society of North America, one of the largest Muslim organizations in the country.
"What's really going on here is a very inappropriate fishing expedition," said Hussein Ibish, spokesman for the American-Arab Anti-Discrimination Committee.
"This political witch hunt is very disheartening and disappointing for us," said Jihad Smaili, a board member of KindHearts, one of the groups listed by the Senate committee. "It appears you are convicted and then you have to show your innocence."
NATIONAL SECURITY CONCERNS
The Treasury Department says the Sept. 11 attacks showed militant groups had infiltrated and abused charities.
"However, this has not resulted in a shutdown of all charities, but rather a focused attempt to target those that are financing or supporting terrorism," Treasury spokeswoman Molly Millerwise said.
"We continue to work with the charitable sector and the Islamic and Arab communities to ensure we are meeting our national security goals while also protecting the integrity of the charitable sector," she said.
The Treasury has so far designated more than 20 charities worldwide as part of the financial support network for al Qaeda, Hamas, and other militant groups.
Earlier this month, the Treasury ordered U.S. banks to freeze the assets of the Oregon branch of the Saudi charity Al Haramain pending investigation.
The government has already designated U.S. charities Benevolence International Foundation, Global Relief Foundation and Holy Land Foundation for Relief and Development as suspected supporters of terrorism and frozen their assets.
"When the government started cracking down and raiding domestic organizations ... there was a sharp drop in donations," said Imad Ahmed, president of the Islamic-American Zakat Foundation in Maryland, whose donations fell 20 percent.
Anwar Khan, U.S. spokesman for the international charity Islamic Relief in California, said he feared a "long-term apprehensiveness toward giving" because donors were scared their money would be seized, rather than given to the needy.
"Not everyone in every case may be innocent, but a lot of innocent people doing very good work are being unnecessarily targeted," the ACLU's Hashad said. "It's a very sad thing for democracy."