Adapted from a statement issued as a press release by Council on Foundations, Independent Sector, National Council of Nonprofits, and United Philanthropy Forum.
TAKE ACTION!
We are deeply concerned about Section 4 of H.R. 9495 and its predecessor, H.R. 6408. While we fully support provisions in the bill that extend tax deadlines for Americans who are wrongfully detained or held hostage abroad, and we agree with the goal of preventing nonprofit organizations from being used to finance terrorism, we have serious concerns about the broad and unchecked authority that this legislation grants to the executive branch.
Specifically, this legislation allows the Secretary of the Treasury to label 501(c) nonprofit organizations as “terrorist supporting organizations” without the requirement to fully disclose the evidence or reasoning behind such a designation. This process undermines constitutional principles of due process, placing the burden of proof on the accused organizations, which would have only 90 days to prove their innocence before losing their tax-exempt status.
The potential consequences of such designations are severe. Even if an organization successfully appeals the decision, the damage to its reputation and operations could be irreversible. The mere association with terrorism could lead to the loss of banking relationships, donor trust, and the ability to serve communities effectively. Ultimately, it is the people who rely on the essential services provided by these organizations who would suffer most.
Current laws already make it illegal for nonprofits to provide material support to terrorist organizations, and those who break these laws are subject to criminal prosecution. While we recognize the need for efficiency in addressing these serious cases, we believe that this should not come at the expense of fairness and transparency. We are willing to work with policymakers to develop improvements that safeguard due process and prevent potential abuses.
We strongly urge lawmakers to amend or oppose H.R. 9495 unless these significant issues are addressed.
Take action today: Contact your representative to express your opposition to H.R. 9495.