Independent Sector has expressed significant concerns regarding the recent approval by the U.S. House of Representatives of H.R. 9495. This legislation would empower the U.S. Secretary of the Treasury with the authority to revoke the tax-exempt status of nonprofit organizations deemed to support terrorism, all without adequate transparency or accountability.
While Independent Sector acknowledges the importance of preventing the misuse of nonprofit organizations for funding terrorism, they criticize the current wording of the bill. They commend provisions that delay tax deadlines for individuals wrongfully detained or held hostage abroad but argue that the bill creates unnecessary redundancy and confusion. More alarmingly, it grants extensive new powers to the executive branch, which could lead to potential abuses and infringe upon due process rights guaranteed by the Constitution.
The concern arises from the broad discretion afforded to the Secretary of the Treasury, which could enable the designation of nonprofits as “terrorist supporting organizations” without providing them with sufficient evidence or a clear rationale. Such a lack of accountability risks unjust ramifications for affected organizations, including reputational damage and operational challenges, while simultaneously threatening public trust in the critical role nonprofits serve within communities.
Independent Sector is dedicated to collaborating with lawmakers to find effective solutions to protect the nonprofit sector from illegal exploitations without enabling unfair targeting of individual organizations. They advocate for a balanced approach that addresses legitimate security concerns while preserving the rights and freedoms integral to American democracy and the diverse fabric of civil society.
In a collective stance, Independent Sector, alongside the Council on Foundations, National Council of Nonprofits, and United Philanthropy Forum, has issued a joint statement opposing H.R. 9495, emphasizing the need for a more thoughtful and equitable approach to this complex issue.
The discussion around this legislation is crucial for the future of the nonprofit sector, emphasizing the balance between national security and the fundamental rights that protect and empower civil society. It is hoped that a collaborative effort will lead to more fair and effective regulatory frameworks that uphold social justice and civil liberties while ensuring the safety of the nation.