Tue Nov 19 02:50:00 UTC 2024: ## Major Nonprofit Groups Oppose Section of Anti-Terrorism Bill

**Washington, D.C.** – Four leading nonprofit advocacy groups – the Council on Foundations, Independent Sector, National Council of Nonprofits, and United Philanthropy Forum – issued a joint statement today expressing strong opposition to Section 4 of H.R.9495 (and its predecessor, H.R.6408), a bill aimed at combating terrorism financing. While supporting efforts to prevent terrorist organizations from exploiting nonprofits, the groups argue that the bill’s current wording grants excessive power to the Treasury Secretary and undermines due process rights.

The groups specifically criticize the bill’s provision allowing the Secretary of the Treasury to unilaterally designate 501(c)(3) organizations as “terrorist supporting organizations” without providing evidence or reasoning to the accused. This designation, they warn, could irreparably harm an organization’s reputation and access to funding, even if later overturned. The 90-day timeframe given to organizations to prove their innocence is deemed insufficient.

Furthermore, the statement highlights concerns that the bill could penalize nonprofits providing humanitarian aid in conflict zones, even if operating under Office of Foreign Assets Control (OFAC) authorizations. This creates a conflict between sanctions law and tax law, putting legitimate aid organizations at risk.

The groups acknowledge the importance of preventing terrorism financing but contend that Section 4 achieves this goal at the cost of fairness and transparency. They urge Congress to amend the bill to protect due process and prevent potential abuse of power, offering their collaboration in refining the investigative process. Until such amendments are made, they urge opposition to H.R.9495.

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