Statement from Council on Foundations, Independent Sector in Strong Opposition to Lack of Due Process in Section 112209 of Budget Reconciliation Legislation
Terror financing has no place in the charitable sector. It is illegal under the law and runs counter to the purposes of American civil society. If bad actors are exploiting our sector for illegal purposes, they need to be stopped for many reasons – including preserving the public’s trust.
However, our organizations strongly oppose language in Section 112209 of the Ways and Means Committee’s budget reconciliation legislation that – like H.R. 6408 and H.R. 9495 in the 118th Congress – has alarming potential for partisan abuse and chilling of charitable sector speech and activity.
Allowing the Secretary of the Treasury to unilaterally designate section 501(c) nonprofits as “terrorist supporting organizations” while requiring those organizations to prove their innocence runs counter to constitutional due process. We appreciate that the authors include an appeals process, but this opportunity would be too little, too late for designated organizations. Those that appeal successfully would still face irreparable damage to their reputation with the people they serve, their donors, and the American public. As a result, we vigorously oppose the current language, and we will work to defeat it at every step of the legislative process.
If terror-financing rules and regulations need improvement to protect public safety and the integrity of the charitable sector, we remain committed to collaborating with lawmakers.
