Why H.R. 9495 Threatens Civil Society and Charitable Work: A Closer Look at Section 4
Introduction:
H.R. 9495, titled the “Stop Terror-Financing and Tax Penalties on American Hostages Act,” introduces essential tax reforms for U.S. nationals unlawfully detained abroad. However, Section 4 of the bill, which addresses terminating the tax-exempt status of “terrorist supporting organizations,” raises significant concerns for civil society, non-profits, and human rights advocacy groups. While well-intentioned, this section threatens to undermine legitimate charitable work through vague definitions, lack of transparency, and limited recourse for affected organizations.
The Issue: Expansive Definitions and Limited Due Process
Under Section 4, the Secretary of the Treasury has the power to designate any non-profit or charitable organization as a “terrorist supporting organization” if it is found to have provided “material support or resources” within the meaning of 18 U.S.C. § 2339B. This is something that should disturb many nonprofits because several critical are several issues of concern:
The criteria laid out H.R. 9495 is broad and ambiguous. The term “material support or resources” is not clearly defined in the context of non-profits. It could include humanitarian aid, legal support, or advocacy activities provided in conflict zones—activities central to many charitable missions.
There is an extreme lack of transparency. The process for designation involves sending a notice to the organization’s last known address and a 90-day response window. If the organization fails to respond or refute the claim, it can be designated without public disclosure of the evidence, leaving organizations in the dark. The idea that the government is able to do this is frightening.
This law has the potential to violate due process. The Secretary can present classified evidence in court proceedings, meaning organizations may never see or contest the evidence used against them. This violates the principle of fair adjudication and raises concerns about unchecked executive power.
There is an insufficient appeals process. The bill directs disputes to the IRS Independent Office of Appeals but provides limited judicial review through U.S. district courts. This complex legal process is beyond the reach of many smaller organizations with limited legal resources.
Why This Matters:
Non-profits working in high-risk areas often navigate complex political landscapes. Section 4 risks criminalizing essential work by targeting groups based on vague and misunderstood standards. This could result in:
• Chilled Humanitarian Aid: Organizations may avoid conflict zones entirely, depriving vulnerable populations of critical services.
• Suppressed Advocacy: Advocacy groups speaking against oppressive regimes could face unwarranted scrutiny and possible shutdown.
• Erosion of Trust: If the U.S. government gains an international reputation for targeting charities based on politically motivated claims, it could deter global philanthropic engagement.
What Should Be Done:
To prevent unintended harm to legitimate non-profits, Section 4 must be amended with:
• Clear Definitions: Specify what constitutes “material support or resources,” with exemptions for humanitarian aid, legal advocacy, and journalistic work.
• Transparent Procedures: Require public disclosure of evidence and establish clear notification requirements.
• Robust Appeals Process: Ensure a fair and accessible process for organizations to contest designations in court.
• Oversight and Accountability: Mandate independent oversight to prevent politically motivated designations.
Call to Action: Stand Up for Civil Society
H.R. 9495, as currently written, risks targeting non-profits, humanitarian organizations, and advocacy groups without clear evidence or due process. We urge you to take action today:
• Contact Your Representatives: Call or email your U.S. Representatives and Senators, urging them to revise Section 4 of H.R. 9495 to protect civil society.
• Join Our Advocacy Campaign: Sign our petition and share this article on social media to raise awareness.
• Support Transparency and Fairness: Demand that lawmakers implement clear guidelines, transparent procedures, and independent oversight in any anti-terror financing legislation.
Let’s work together to ensure that protecting national security does not come at the cost of civil liberties, humanitarian aid, and global justice. Take action now—our collective voice matters!
