Independent Sector has expressed significant concern regarding the recent passage of H.R. 9495 by the U.S. House of Representatives. This bill grants the U.S. Secretary of the Treasury extensive authority to revoke the tax-exempt status of nonprofit organizations that may be designated as supporters of terrorism. One of the primary issues highlighted is the bill’s lack of transparency and accountability in how such designations are made.
While Independent Sector supports efforts to prevent the misuse of nonprofit organizations for funding terrorism and appreciates the bill’s provision to defer tax deadlines for individuals unlawfully detained or held hostage, the organization argues that the legislation introduces unnecessary complexities and expands executive powers that could be misused. They raise concerns that the vague criteria for designation could lead to unjust targets, damaging the reputations of nonprofits, and damaging community trust. Most importantly, such actions could hinder the vital services that nonprofits provide to society.
The organization advocates for necessary reforms to prevent the exploitation of nonprofits for illegal activities but firmly opposes any measures that could lead to the unfair targeting of these entities. They emphasize the importance of collaboration with lawmakers to find solutions that ensure genuine security while upholding the fundamental rights necessary for a healthy democracy and diverse civil society. Independent Sector is joining other organizations—including the Council on Foundations, the National Council of Nonprofits, and the United Philanthropy Forum—in voicing their opposition to H.R. 9495.
In a climate where the role of nonprofits is increasingly vital, it’s crucial for legislative measures to balance security efforts with the protection of civil liberties and the trust placed in these organizations by the communities they serve. This collaborative spirit among nonprofits highlights the sector’s resilience and commitment to safeguarding its mission while striving for accountability and transparency.
The ongoing dialogue around this issue presents an opportunity for stakeholders to engage in constructive discussions, ensuring that any legislative measures serve not only security interests but also protect the essential fabric of nonprofit work within American society.