While nonprofit organizations are subject to a host of regulatory requirements at the federal, state and local levels in the U.S., and are regulated in almost every country in the world, they also subject themselves to a wide array of due diligence, oversight and transparency mechanism. In ensuring that nonprofit funds are only spent for nonprofit purposes, the organizations protect themselves from the possibility of terrorist abuse, fraud, theft, and other diversion of assets. Because a nonprofit organization stands to lose the most, these self-imposed measures protect the organization, its donors, programs, partners and beneficiaries. Although there is no uniform set of procedures, measures taken typically include risk assessment, screening vendors against sanctions lists, and internal policies and procedures.
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Analysis: 2006 Treasury Dept. Voluntary Anti-Terrorist Financing Guidelines
On Sept. 29, 2006 the U.S. Department of the Treasury (Treasury) released updated Anti-Terrorist Financing Guidelines: Voluntary Best Practices for U.S.-Based Charities, its third version of recommendations for charities since 2002. The new Guidelines reflect Treasury
Treasury Posts Risk Matrix for Charities
In March 2007, without public announcement or comment, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) published a Risk Matrix for the Charitable Sector on its website. The Introduction of the publication