Impact on U.S. Nonprofits

Since 2001, counterterrorism measures have eroded the freedom and ability of charities and their funders to carry out their missions.  This is damaging the nation’s reputation and effectiveness on the global stage. 
photo by Kimberly Faye

 

Impact on U.S. Nonprofits

List of U.S. charities designated, shut down or both by Treasury

Date: 
January 26, 2012

The legal authority for the Department of Treasury to designate a person or organization as a Specially Designated Global Terrorists (SDGT) (or freeze assets "pending investigation") is based on laws providing for economic sanctions against foreign nations, going back to the Trading With the Enemy Act in 1917 and ending with the Patriot Act. 

Selective Enforcement: Charities Targeted for Harsher Sanctions

Date: 
June 29, 2009

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has designated nine U.S. charities as supporters of terrorism, seizing all property, blocking all funds and effectively closing all programs. In contrast, the for-profit corporations Halliburton and Chiquita Brands International have only had to pay fines for very similar alleged violations, and their operations have not been interrupted or shut down. There has been no explanation from OFAC.

U.S. Muslim Charities and The War on Terror: A Decade in Review

Date: 
December 21, 2011
A December 2011 report published by the Charity and Security Network, U.S. Muslim Charities and the War on Terror: A Decade in Review, examines the challenges American Muslim charities have faced since 9/11 and how they have successfully responded. 

The report is an update to the OMB Watch March 2006 report, Muslim Charities and the War on Terror: Top Ten Concerns and Status Update. The update summarizes action by the U.S. government to shut down American Muslim charities since 2006, and gives updates on the status of litigation and other efforts by charities. It also details the unwarranted government investigation and surveillance of Muslim communities and charities. The report concludes by examining how the American Muslim charitable sector has addressed government scrutiny by implementing rigorous due diligence procedures, and educating politicians and the public to combat Islamophobia.
 

What Happens to a Charity After an FBI Raid

Date: 
November 30, 2010

Case Study: Life & Relief and Development (LIFE)

On the eve of Ramadan in September 2006, the Federal Bureau of Investigations (FBI) conducted a raid on the Detroit area headquarters of Life for Relief and Development (LIFE). Without warning, they seized several computers containing the charity’s files, databases, e-mail correspondence and financial information. LIFE, the largest U.S.-founded Muslim American humanitarian relief and development organization, was told by the FBI that the raid was not related to terrorism and that the charity’s operations could continue as before. Despite the fact that no criminal charges filed, the raid triggered tremendous media scrutiny. This prompted LIFE’s local bank to withdraw its services, interrupting its humanitarian assistance programs. 

The Impact of Counterterrorism Measures on Charities and Donors After 9/11

Date: 
August 16, 2010

There is increasing evidence of the negative impact on all charities of the counter-terrorism measures introduced since 2001.[i]  Here are examples from around the world:

Peter King's Letter on HLF Case Inconsistent with Prosecutor’s Statement to Courts

Date: 
April 25, 2011

A review of Holy Land Foundation (HLF) trial documents indicate government attorneys created the unindicted co-conspirator list as a legal maneuver, not for future criminal prosecution as Peter King’s April 15 letter to Attorney General Eric Holder suggests. A summary of two federal court decisions with background information about the unindicted co-conspirator list in the HLF case is available here. Federal courts have said the release of the list violated the due process rights of the groups listed.

Collateral Damage: How the War on Terror Hurts Charities, Foundations, and the People They Serve

Date: 
May 11, 2009

This paper, published in July 2008, is the result of collaborative research conducted by OMB Watch and Grantmakers Without Borders. We believe charities in the United States and throughout the world play a key role in democratic systems by giving citizens a vehicle for participation, providing tools and information that help people get involved, and delivering assistance to those in need.

Summary: Courts Rule Publication of Unindicted Co-conspirator List in Holy Land Case Violated Due Process Rights

Date: 
April 22, 2011
 
Since 2004 the criminal prosecution of the Holy Land Foundation (HLF) and its leaders for material support of terrorism has been, and continues to be, a long running legal battle. One unusual twist has been a May 29, 2007 filing by the prosecution that listed 246 individuals and entities as "Un-indicted Co-conspirators and/or Joint Venturers." In a break with DOJ policies, the list was not sealed and the names, which included most major U.S. Muslim organizations, were made public. Both the trial court in Dallas and the Fifth Circuit Court of Appeals ruled that the release violated due process rights under the Fifth Amendment.

Inconsistencies in Peter King Letter on Holy Land Unindicted Co-Conspirators List

Date: 
April 22, 2011

On April 15, 2011 Rep. Peter King (R-NY), chair of the House Homeland Security Committee, sent a letter  to Attorney General Eric Holder, Jr. accusing him of failing to prosecute unindicted co-conspirators in the Holy Land Foundation (HLF) case for political, rather than legal, reasons. He asked the Department of Justice (DOJ) to respond to questions about its decision making process by April 25.