Principles for International Charity
In response to the terrorist attacks of September 11, 2001 the U.S. Treasury Department issued its “Anti-Terrorist Financing Guidelines: Voluntary Best Practices For U.S.-Based Charities.” Many in the charitable sector had concerns with the practicality of the guidelines, their effectiveness, and their potential to discourage international charitable activities by U.S. organizations. This dissatisfaction led to the Council on Foundations and over 40 other charities, including Independent Sector, developing the Principles of International Charity (PDF) as an alternative to the Treasury guidelines in 2005.
Treasury Guidelines for International
Charitable Activity
On December 18, 2006, the Council on Foundations, on behalf of the Treasury Guidelines Working Group, submitted a response to the U.S. Department of the Treasury's updated Anti-Terrorist Financing Guidelines. Treasury issued a revised
version of its Anti-Terrorist
Financing Guidelines: Voluntary Best Practices for U.S.-based Charities
(PDF) on September 29, 2006. The revised
guidelines respond to extensive comments and suggestions provided
by a variety of organizations, including comments
(PDF) submitted in February 2006 by
the Council on Foundations, Independent Sector, and others participating
in the Council’s Treasury Guidelines Working Group. The comments
identified key concerns with the guidelines and suggested they be
withdrawn and replaced with Principles of
International Charity developed by members of the Working Group in March 2005.
Treasury declined to withdraw the guidelines, but made some amendments
in response to comments. Treasury's response
(PDF) was released in a second document.
The Working Group's comments focused on three principal concerns:
1) the impression created by the Guidelines that charitable organizations
are agents of the government, inadvertently exacerbating the safety
risk for charities and humanitarian workers; 2) the additional information
on individuals and organizations suggested to be collected in the
Guidelines; and, 3) the Guidelines contain broader guidance to charities
than may be necessary to comply with anti-terrorist financing obligations.
Related Issues
Handbook on Counter-Terrorism Measures
In 2004, Independent Sector, InterAction, the Council on Foundations, and the Day, Berry & Howard Foundation released a handbook to help nonprofits and foundations meet new U.S. requirements for preventing their funding or activities from inadvertently being used for illegal acts, such as terrorist activities. The Handbook on Counter-Terrorism Measures: What U.S. Nonprofits and Grantmakers Need to Know, (PDF) discusses the laws, regulations and enforcement measures in place in the post-September 11, 2001, environment.
The Handbook examines the Executive Order issued in response to terrorist attacks of 2001, the Patriot Act, embargoes and trade sanctions, IRS rules and the Treasury Department’s voluntary guidelines, as well as special requirements for organizations funded by the U.S. Agency for International Development. For example, Executive Order 13224 gives government the authority to freeze assets of organizations associated with terrorist activities—even when the organizations did not have knowledge of the link.
CFC Certification
A certification rule (PDF) for the Combined Federal Campaign (a workplace giving campaign for federal employees) encourages, but does not require organizations participating in the CFC to check terrorist lists. It does, however, require certification of compliance with anti-terrorism laws and regulations. More
Comments to the IRS on Regulation of International Charitable Activities
Independent Sector and InterAction responded to an Internal Revenue Service request for comments in 2003 on whether additional reporting requirements or guidelines are needed to reduce the possibility of diversion of charitable resources to terrorist activities. The joint comments conclude that no additional regulations are required, but that government lists of blocked organizations should be consolidated.
Last Updated: November 5, 2008
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