Independent Sector has expressed significant concern regarding the recent approval of H.R. 9495 by the U.S. House of Representatives, a bill that would empower the U.S. Secretary of the Treasury to revoke the tax-exempt status of nonprofits with minimal transparency and accountability if they are labeled as terrorist supporters.
While Independent Sector agrees on the crucial need to prevent misuse of nonprofit organizations for terrorism financing, they believe that the language of the bill introduces unnecessary complications and affords excessive power to the executive branch, potentially undermining constitutional due process protections.
The bill allows for the Secretary of the Treasury to categorically designate nonprofits as “terrorist supporting organizations” without providing adequate evidence or justification. This could lead to wrongful accusations, inflicting severe reputational damage and operational disruptions to nonprofits, diminishing public confidence in their work. Most alarmingly, such measures threaten to obstruct the vital services that nonprofits offer within their communities.
Independent Sector acknowledges that existing rules may require enhancement to safeguard the nonprofit sector against illegal activities. They remain open to working with legislators to pursue effective resolutions. However, they firmly oppose any proposal that could facilitate the unfair targeting of nonprofits. The organization advocates for collaborative solutions that align genuine security imperatives with the fundamental rights and freedoms that are integral to American democracy and the rich tradition of a diverse civil society.
Additionally, Independent Sector has joined forces with the Council on Foundations, National Council of Nonprofits, and United Philanthropy Forum in formally opposing H.R. 9495.
In summary, Independent Sector is committed to protecting the integrity and mission of nonprofit organizations while ensuring that security measures do not infringe upon the rights and operational capabilities of these crucial institutions. The dialogue on refining these laws presents an opportunity for constructive engagement towards safeguarding both security interests and the legitimate work of nonprofits.