Report: Nonprofits ‘Gaming the System’ for Farm Subsidies that Never Reach Farms

Some nonprofit organizations whose stated purposes have nothing to do with farming have enjoyed hundreds of thousands of dollars in farm subsidies over the past ten years, according to a FoxNews.com report.

They include:

1. The Three Year Economic Saving Program, which supervises Muhammad farms, is owned by Nation of Islam leader Louis Farrakhan. The farm is located in Georgia, but the government subsidies, nearly $160,000, have gone to Farrakhan’s home in Chicago since 2002. The program, which was incorporated on Sept. 12, 2001, has been listed as “Not in Good Standing” by Illinois’s secretary of state since last September. The Office of the Illinois Secretary of State said the program was “involuntarily” dissolved by the State of Illinois on Feb. 1.

The Illinois Attorney General Office said it has no record of the program’s ever being a charity. Adam Andrzejewski, founder of OpenTheBooks.com, asked, “’Not in good standing’ doesn’t seem to trouble the Cincinnati office of the IRS. Why is Farrakhan’s charity allowed to receive federal money? This is no longer about farm policy, it’s merely a transfer mechanism from one set of Americans who pay taxes to another set who know how to game the system.”

The Muhammad Farms website states that donors to the program can make “tax deductible contributions” to the Three Year Economic Saving Program. However, neither Muhammad Farms, the Nation of Islam, nor the Three Year Program have a listing on the IRS’s public database of 990 forms, the forms that can testify that the program or company has true nonprofit tax-exempt status. The Three Year program may be evading filing such forms by claiming it is a religious program, which would make it exempt. The Freedom of Information Act states that nonprofits are required to show their 990 forms for the past three years if requested, but the Nation of Islam would not return phone calls when the forms were requested.

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