I don't have the facts to determine whether or not the man is giving money to terrorist groups. I do know that both the Israel and US claim he is, but I also know that the terrorist rumors began to surface after a quote taken from him in a speech in the 80s. He claims the quote is false.
I learn more toward him not being a terrorist, because his messages all appear to be peace, and I happen to really like his music. It wouldn't be as much fun jamming to him if I knew he was a terrorist. :/