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As minister of the Revolutionary Guards in the 1980s, Rafiqdoost played a key role in sponsoring Hezbollah in Lebanon--which kidnapped foreigners, hijacked airplanes, set off car bombs, trafficked in heroin and pioneered the use of suicide bombers. According to Gregory Sullivan, spokesman for the Near Eastern Affairs Bureau at the U.S. State Department, the foundations are the perfect vehicles to carry out Iran's shadow foreign policy. (One of them offered the $2.8 million bounty to anyone who carried out Ayatollah Khomeini's fatwa to kill British author Salman Rushdie.)

The largest "charity" (at least in terms of real estate holdings) is the centuries-old Razavi Foundation, charged with caring for Iran's most revered shrine--the tomb of Reza, the Eighth Shiite Imam, in the northern city of Mashhad. It is run by one of Iran's leading hard-line mullahs, Ayatollah Vaez-Tabasi, who prefers to stay out of the public eye but emerges occasionally to urge death to apostates and other opponents of the clerical regime.

The Razavi Foundation owns vast tracts of urban real estate all across Iran, as well as hotels, factories, farms and quarries. Its assets are impossible to value with any precision, since the foundation has never released an inventory of its holdings, but Iranian economists speak of a net asset value of $15 billion or more. The foundation also receives generous contributions from the millions of pilgrims who visit the Mashhad shrine each year.