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Despite requests from charities and grantmakers around the country, the anniversary of President Barack Obama’s June 2009 speech in Cairo passed by without concrete steps by the administration to address the chilling impact current security rules have on charitable giving and operations.  The only action taken was the Department of Treasury’s (Treasury) release of a Frequently Asked Questions document which did not indicate any changes in procedures for shutting down charities that two federal courts have found to be unconstitutional. An analysis of the FAQ is available here. 

In May and June U.S. organizations, coordinated by the Charity and Security Network, sent a letter asking Obama to issue “a White House directive to all federal agencies mandating revision of their current policies and practices to conform to basic humanitarian principles.” It asked that White House staff consult with the U.S. nonprofit sector to explore solutions to the following deficiencies in the legal regime:

  • Absence of clear standards for designating charities as terrorist organizations

  • Inadequate humanitarian exemptions to the laws banning material support to terrorism

  • No protections for good faith acts

  • Indefinite freezing of assets

  • Harassment of donors and consequent chilling effect on charitable giving.

On May 12 a panel hosted by the Muslim Public Affairs Council and the Charity and Security Network made the need for action clear.  A transcript of the event is available here.