Impact on U.S. Nonprofits

List of U.S. charities designated, shut down or both by Treasury

in
Date: 
May 25, 2010

The legal authority for the Department of Treasury to designate a person or organization as a Specially Designated Global Terrorist (SDGT) or freeze assets "pending investigation" is based on laws providing for economic sanctions against foreign nations, going back to the Trading With the Enemy Act in 1917 and ending with the Patriot Act. 

The Impact of Counterterrorism Measures on Charities and Donors After 9/11

in
Date: 
August 16, 2010

There is increasing evidence of the negative impact on all charities of the counter-terrorism measures introduced since 2001.[i] A January 2006 workshop held by INTRAC (International NGO Training and Research Centre, Oxford, UK) foresees that such measures will have ‘disproportionate and far-reaching effects on public giving, international cooperation agendas, movement of funds and other types of support’ for charities.

Kay Guinane Answers Rep. Keith Ellison’s Questions about U.S. charities Impacted by Treasury’s Regime.

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Date: 
August 11, 2010

QUESTIONS TO THE PANELISTS FROM CONGRESSMAN KEITH ELLISON

for the

Anti-Money Laundering: Blocking Terrorist Financing and Its Impact on Lawful Charities

Hearing Before the Subcommittee on Oversight and Investigations, House Committee on Financial Services

May 26, 2010

Asset Forfeiture Case Filed Against Alavi Foundation, Grantees Not Accused

in
Date: 
November 16, 2009

Updated Nov. 19, 2009 Citing a provision of the same law used to shut down U.S. charities accused of supporting terrorism, the U.S. Attorney for the Southern District of New York filed an action in federal court on Nov. 12, 2009 seeking forfeiture of more than $500 million in assets of the New York based Alavi Foundation, alleging it is a front for the Iranian government. The property in dispute includes land and buildings that house religious congregations, schools and community programs. However, no action is being taken against these local groups. The action against Alavi, which could result in transfer of title to its assets to the U.S. government, differs from shut down of charities of "blocking" or freezing funds indefinitely.

The Disconnect: U.S. Doesn't Follow the State Department's "Guiding Principles on Non-Governmental Organizations"

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Date: 
September 22, 2009

In December 2006, the State Department launched an initiative to support the work of human rights defenders throughout the globe. Part of the initiative was the "Guiding Principles on Non-Governmental Organizations" (Principles), intended to guide the U.S. government's treatment of nonprofits and to assess the actions of other governments. However, there are glaring discrepancies between these Principles and the counterterrorism laws and policies applied to U.S. nonprofits by the federal government. 

This chart compares U.S. values against U.S. practice.

This Ramadan, Give Without Fear (But Give Wisely)

in
Date: 
August 19, 2009
Author: 
Mazen Asbahi, Esq. (Guest Author)

American Muslims face unique and troubling challenges in trying to fulfill their religious obligations to give charity or zakat. The laws meant to serve the legitimate purpose of preventing the diversion of humanitarian aid to terrorist groups are, instead, overly broad, ambiguous and constitutionally suspect.   Sweeping powers granted to federal agencies in the wake of 9/11 resulted in the closing of nine American Muslim charities. However, the majority of these charities were not charged with any wrongdoing and only one investigation resulted in a conviction. &nbs

Examples of Negative Impact of U.S. Counterterrorism Laws on Charities and Philanthropy

in
Date: 
July 1, 2009

U.S. counterterrorism laws and policies have had negative impacts that make it more difficult for charities and grantmakers to operate and in some cases, block donations for charitable programs from being used at all. The examples below, based on news reports and OMB Watch publications, illustrate this collateral damage. Changes in policy can support the work of charities, which often addresses the root causes of terrorism, without diminishing public safety. 

Selective Enforcement: Charities Targeted for Harsher Sanctions

in
Date: 
June 29, 2009

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has designated nine U.S. charities as supporters of terrorism, seizing all property, blocking all funds and effectively closing all programs. In contrast, the for-profit corporations Halliburton and Chiquita Brands International have only had to pay fines for very similar alleged violations, and their operations have not been interrupted or shut down. There has been no explanation from OFAC.

Expert: Rulings Diminish Charitable Giving and Impact

in
Date: 
January 6, 2009

Donors are growing increasingly weary as court decisions against charities have created an environment of suspicion for numerous Muslim charities. The decrease in contributions will lead to smaller numbers of people receiving relief. 

Obama's Cairo Pledge on Charitable Giving Rules Opens Door to Reform

in
Date: 
June 15, 2009

President Obama's June 4 speech in Cairo had encouraging words for nonprofit organizations in the U.S. and around the world, as he recognized that U.S. charitable giving rules have made charitable donations difficult for Muslims and committed himself to working with American Muslims to resolve the problem. The Charity Security Network and Muslim Advocates each responded with statements pledging cooperation in developing new rules that protect and promote legitimate charitable programs and their donors, both Muslim and non-Muslim. 

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