Federal authorities have launched an investigation into a U.K.-based nonprofit with ties to New York City Mayor Zohran Mamdani, alleging it may have directed donor funds to a Palestinian group sanctioned by the U.S.
The Department of Homeland Security is probing the organization known as PFF, which holds approximately $100 million in assets and has been linked to anti-Israel advocacy. According to reporting by the New York Post, investigators are examining whether PFF contributed funds to Al-Haq, a Palestinian human rights organization designated by the U.S. government in 2021 under terrorism-related sanctions.
The investigation centers on Bassema Yousef, a New York-born Democratic donor and longtime Mamdani ally now based in London. Sources cited by the Post describe Yousef as the "lynchpin" of PFF’s fundraising efforts. Her public statements, as reported by the Post, include claims that Israel is committing "war crimes with U.S. tax dollars." Yousef co-founded PFF alongside Basil Qunibi, an Austin-based investing executive, and Yasser Shahin, a Palestinian-Australian motorsports magnate. Corporate filings in the U.K. confirm Shahin’s involvement, while the IRS has verified PFF’s nonprofit arm registered in Delaware.
PFF describes itself on its website as a "strategic foundation" that is "large, well-funded, and institutional in quality," with a stated mission to support anti-Israel causes. The organization’s executives have been linked by sources to financing anti-Israel messaging and defending pro-Palestinian activists, according to the Post.
Federal scrutiny intensifies amid broader geopolitical tensions
The investigation comes as U.S. authorities have increasingly targeted financial networks alleged to fund groups designated under terrorism-related sanctions. The Treasury Department’s 2021 designation of Al-Haq cited its alleged ties to the Popular Front for the Liberation of Palestine (PFLP), a group designated as a terrorist organization by the U.S. and other governments. Al-Haq has denied these allegations, stating it is a human rights organization focused on documenting violations in the West Bank.
Mayor Mamdani’s indirect connection to the probe
While Mamdani has not been accused of wrongdoing, the Post reports that Yousef is a longtime political ally. Mamdani, a member of the Democratic Socialists of America, has been a vocal critic of Israel’s military actions in Gaza and has called for a ceasefire. His office has not responded to requests for comment on the investigation.
Funding structure and organizational details
PFF’s financial structure includes a U.K.-based entity with a reported $100 million "war chest," as described by a source familiar with its operations. The organization’s website emphasizes its role in "challenging Israeli policies" and supporting "Palestinian liberation movements." The IRS confirmed the existence of PFF’s Delaware-based nonprofit arm, though its tax-exempt status and activities remain under review.
The investigation is being conducted by the Department of Homeland Security’s Office of Intelligence and Analysis, which focuses on threats to national security, including financial support for designated groups. A DHS spokesperson declined to comment on the probe.
Broader implications for nonprofit advocacy
The case raises questions about the boundaries of nonprofit advocacy, particularly for organizations engaged in contentious political causes. Legal experts note that U.S. law allows nonprofits to fund controversial political speech, but prohibits material support to designated terrorist groups. The probe could set a precedent for how federal agencies assess the indirect funding of sanctioned entities through third-party organizations.
The outcome of the investigation may influence future enforcement actions against nonprofits with international ties, as well as the regulatory oversight of charitable organizations operating across multiple jurisdictions.