1. Notice and early stage of administrative action
When the USG determines enforcement action may be necessary, it should notify the nonprofit in writing delivered in person to the chief executive officer or chair of the governing body. The notice should:
a. Contain allegations of sufficient specificity to inform the nonprofit of the issues and USG concerns so that it can prepare a response;
b. Set a date for a status conference between the nonprofit and the USG to determine next steps to be held no more than 60 days from the date of the notice.
c. Unless the USG obtains a court order appointing a receiver to assume control of the nonprofit’s funds in order to prevent their transfer out of U.S. jurisdiction, it should allow the nonprofit 30 days to respond, including obtaining counsel, before any adverse action is taken.
d. This notice requirement should apply to any subsequent allegations made by the USG.
2. Legal representation
It should not be necessary for a nonprofit receiving notice from the USG to obtain a license from Treasury to retain counsel or communicate with persons in possession of information necessary to formulate a response to the USG’s specific allegations.
3. Classified evidence
If classified information serves as a basis for government action against the nonprofit, the following provisions apply:
a. NOTICE – Within 10 days of any government action against a nonprofit the USG should provide the nonprofit with fair notice of the classified information at issue.
b. OPTIONS FOR NONPROFIT VIEWING AND USE OF CLASSIFIED INFORMATION: Upon receipt of notice from the USG that classified information is at issue in the investigation, the nonprofit may opt to follow one of the following procedures:
i. ATTORNEY WITH SECURITY CLEARANCE: The nonprofit may request that in lieu of its access to the classified information, the USG allow its attorney, with the appropriate security clearance, to access the classified information. Such counsel will participate in the review of classified information to determine disclosure issues.
• If the nonprofit hires an attorney with security clearance to access to classified information, the attorney may share specified documents with the client upon a particularized showing of the need to share documents with a client. The USG should consider whether specified documents are essential for client review, and, in such cases, consider declassification of the documents or find a substitute means to allow the nonprofit to review the essential information.
ii. SUBSTITUTION OF CLASSIFIED INFORMATION: In lieu of an attorney with security clearance viewing classified evidence, the nonprofit may request:
• the substitution for such classified information of a statement admitting relevant facts that the specific classified information would tend to prove; or
• the substitution for such classified information of a summary of the specific classified information. The summary must be sufficiently detailed to allow the nonprofit to put forth a meaningful legal response. 
c. ORGANIZATIONS’ OWN DOCUMENTS NOT CONSIDERED CLASSIFIED: Documents created by the nonprofit or obtained from the nonprofit’s records should be accessible to it.
d. RIGHT TO EXCULPATORY INFORMATION: Whenever the USG determines that classified information may be disclosed in connection with government action, it should provide the nonprofit with the information in its possession that can be used to rebut the classified information. The USG should be under a continuing duty to disclose such rebuttal information.
e. ANONYMOUS WITNESSES: The USG should corroborate any evidence provided by anonymous witnesses before it may base adverse action on such evidence.
f. RELIEF FOR NONPROFIT WHEN USG OPPOSES DISCLOSURE: If the USG declines to disclose information under the process outlined above, after an investigation or adverse government action is initiated and after notice of that classified information is at issue, the nonprofit may petition the federal district court within 45 days for an order under the Classified Information Procedures Act allowing it access to the information.
• The United States could, in connection with such a petition, submit to the court an affidavit of the head of the USG agency certifying that disclosure of classified information would cause identifiable damage to the national security of the United States and explaining the basis for the classification of such information. If so requested by the United States, the court could examine such affidavit in camera and ex parte.
g. PROHIBITION ON DISCLOSURE OF CLASSIFIED INFORMATION BY NONPROFIT: The nonprofit and its legal representative should not disclose classified information shared with it under the provisions of this section. However, summaries substituting for classified information are not covered by this prohibition.
Because of the potential for public misunderstanding of the nature and extent of an USG investigation and the resulting negative impact on a nonprofit’s operations and fundraising, proceedings in the investigation and compliance phase should be confidential unless waived by the nonprofit.