U.S. Charities, both Muslim and non-Muslim, Affected by Outdated Rules, are Ready to Work to Protect Zakat and Humanitarian Programs

In his June 4 speech in Cairo, President Barack Obama said:

“Freedom of religion is central to the ability of peoples to live together.  We must always examine the ways in which we protect it.  For instance, in the United States, rules on charitable giving have made it harder for Muslims to fulfill their religious obligation.  That’s why I’m committed to working with American Muslims to ensure that they can fulfill zakat.”

These are welcome words. The President’s recognition that U.S. restrictions on charitable giving are negatively affecting religious freedom in America is a big step forward. Current national security laws create for serious problems for legitimate charities. Like so many others, we look forward to President Obama’s next steps.

Good solutions depend on good understanding of problems. In the U.S. our national security laws have made both zakat and the operations of charities more difficult for both Muslim and non-Muslim groups. For example:

  • The definition of prohibited material support of terrorism is so broad that it can make humanitarian aid illegal. This conflicts with Red Cross standards of non-discrimination in aid and development programs and violates our fundamental values respecting human life.
  • A charity merely accused of supporting terrorism can be shut down by the Treasury Department and have its assets frozen indefinitely, with no opportunity for the charity to see the evidence against it or defend itself against the allegations before an independent tribunal.
  • There is no process to release frozen charitable funds to programs that respect the intentions of the donors, including Muslims fulfilling zakat. Frozen funds are now estimated at $20.7 million.

In the years immediately following the attacks of 9/11, Bush administration tactics such as the shuttering of large U.S. Muslim charities during the holy month of Ramadan and FBI visiting Muslim donors have led many Muslims to believe the U.S. government wants to deprive Muslims living in conflict zones of essential aid. These perceptions are heightened by the contrast with the lenient treatment of companies like Chiquita Banana that violated the same laws, but were only fined.

These overbroad laws are misguided attempts to deal with a small number of bad apples in the international charitable community. They were written as an emergency measure immediately after 9/11 when the government knew little of how terrorist organizations are actually funded. Their usefulness is now out-dated. Every charity and grantmaker is affected by these onerous laws yet very few have actually been charged with aiding terrorists, and fewer still convicted.

Americans’ generosity toward people in need is an asset our government should leverage in winning goodwill in the international community, not impede with a legal regime that is both unjust and ineffective. The time has come to develop sensible long term counterterrorism policies that allow charities, aid and economic development programs, human rights advocates and their donors to operate without undue fear of prosecution or being shut down.  This will surely give the President’s words real meaning.

We have requested a meeting with newly confirmed Assistant Secretary for Terrorist Financing David Cohen at the Department of Treasury to offer concrete recommendations that contribute to both security concerns and the well being of those in areas of conflict. We stand ready to meet with him and any other representatives of the Obama administration to engage in, as the President said in Cairo, “a sustained effort to find common ground, to focus on the future we seek for our children and to respect the dignity of all human beings.”