In the post-9/11 era, litigation involving counterterrorism laws like the USA PATRIOT ACT and nonprofit rights has had a significant impact on how the law is applied and the ability of U.S. charities doing humanitarian, development, peacebuilding, human rights and similar work to operate effectively. This section provides overview and analysis of the major counterterrorism cases affecting nonprofits. Below you will find all of these cases organized under one of six main themes: As you navigate to each case, you will find a page giving a case overview and any important developments or analysis related to it, along with a list of additional resources.

Material Support

18 U.S.C. §2339 prohibits the provision of broadly defined “material support” to designated terrorists and groups.

Holder v. Humanitarian Law Project

The U.S. Supreme Court ruled that training, expert advice or assistance for designated groups is not protected speech and falls within the prohibition on material support of terrorism, even when it is for the purpose of building peace and support for nonviolence. Read more.

USA v. Holy Land Foundation for Relief and Development

Charity’s leaders were convicted of providing material support to terrorists and given lengthy prison sentences, even though the zakat committees that received aid were not on a government list. This case also raised evidentiary and due process concerns. Read more.

Due Process & Designation

To designate a group and freeze its assets, the government only needs a “reasonable suspicion” that it is providing support to terrorists. The groups’s assets can be frozen pending an investigation.

KindHearts for Charitable Humanitarian Development, Inc. v. Geithner

Following a federal court ruling that freezing the charity’s assets pending investigation of alleged terrorist support was an unlawful seizure, the government reached a settlement in which they agreed to delist the charity and unfreeze their assets so they could be distributed. Read more.

Al-Haramain Islamic Foundation v. U.S. Department of the Treasury

A federal appeals court held that the Fifth Amendment’s guarantee of due process requires Treasury to give adequate notice of the reasons for putting a charity on the terrorist list, as well as a meaningful opportunity to respond. The court also ruled that freezing the group’s assets amounts to a Fourth Amendment seizure and that the term “material support” of terrorism is unconstitutionally vague. Read more.

USA v. Chiquita Banana

In contrast to standards applied to charities, this corporation was allowed to enter into a plea deal and pay a fine after admitting it paid terrorists for protection in Columbia even though they knew the payments were illegal. Read more.

Yassin A. Kadi v. Paulson

Kadi’s court challenges to his placement on terrorist listings in the EU and the U.S. produced different results, with U.S. courts rejecting his constitutional claims. Read more.

Surveillance

Nonprofits assert that domestic surveillance violates their First, Fourth and Fifth Amendment rights and fall outside authority granted by the PATRIOT Act.

Al-Haramain Islamic Foundation v. Bush; Al-Haramain Islamic Foundation v. Obama

A federal judge ruled the phone conversations of the charity with two of its American lawyers were illegally wiretapped. Read more.

First Unitarian Church of Los Angeles v. National Security Agency

A lawsuit filed by 24 nonprofits (including the Charity & Security Network) challenges the NSA’s bulk collection of communication data. Read more.

Sanctions

U.S. listing of terrorists is part of a broader sanctions regime that bans payments, exports and services to certain countries, regions, economic sectors, persons and entities.

USA v. Mehrdad Yasrebi and Child Foundation

A charity and its leader were charged with sending funds to Iran in violation of U.S. sanctions and falsifying documents in a coverup. Read more.

Iran Thalassemia Society et al v. OFAC

In August 2022, Iranian non-government organizations (NGOs) Iran Thalassemia Society and EB Home, supported by other plaintiffs filed suit in the Federal District Court in Oregon against the U.S. Treasury Department’s  Office of Foreign Assets Control (OFAC), requesting that the District Court enjoin the U.S. government from imposing economic sanctions that have caused medical aid to cease to Iran. Read more.

 

Lawfare

These lawsuits brought by individuals or groups steer valuable resources away from lifesaving work in an attempt to push forth a political agenda.

USA ex rel TZAC, Inc. v. Christian Aid

TZAC files a False Claims Act suit against the UK-based charity Christian Aid, claiming it falsely claimed the USAID anti-terrorism certification because it allegedly funded a local Lebanese charity that in turn worked with a listed group to provide vocational training. A motion to dismiss the case is pending. Read more.

Jewish National Fund, et al. v. Education for a Just Peace in the Middle East (US Campaign for Palestinian Rights)

The court granted USPCR’s Motion to Dismiss a case brought by JNF and 12 Americans living in Israel, who alleged that USCPR was liable under the Anti-Terrorism Act for damages due to injuries from attacks in Israel because it collects funds from U.S. donors for the Boycott National Committee in Palestine, whose membership includes a coalition that includes Hamas. Read more.

State of New York ex rel. TZAC, Inc. v New Israel Fund

The parties “agreed to disagree” in a settlement that resulted in dismissal of this case, with no damages paid or admission of wrongdoing. The False Claims Act lawsuit alleged NIF fraudulently claimed tax exempt status in New York State, arguing that its advocacy work in Israel constituted partisan electioneering under IRS rules. Read more.

USA ex rel. TZAC, Inc. v. American University in Beirut

AUB agreed to pay $700,000 after TZAC alleged that its journalist training program included people on OFAC’s SDN list. Read more.

USA ex rel. TZAC, Inc. v. Norwegian People’s Aid

NPA settled a federal lawsuit that alleged two of its projects – democracy training for youth in Gaza and mine clearing in Iran – violated the terms of its USAID grant agreement in which it stipulated that it did not provide material support to terrorists. The grant was to provide emergency aid in South Sudan. Read more.

USA ex rel. TZAC, Inc. v. The Carter Center, Inc.

TZAC was unsuccessful in its False Claims Act lawsuit alleging that the Carter Center provided material support to terrorists when it held a meeting in which refreshments were served, contrary to the terms of its grant agreement with USAID. The case was dismissed before trial at the request of DOJ. Read more.

USA ex rel. TZAC, Inc. v. Oxfam GB

TZAC filed a notice of voluntary dismissal after DOJ moved to dismiss the lawsuit in which TZAC alleged that an Oxfam project supports ministries tied to Hamas (which is on the U.S. terrorist list) and the Palestinian Authority (which is not), contrary to the terms of its grant agreement with USAID. Read more.

Civil Liability / Anti-Terrorism Act

The Anti-Terrorism Act (ATA) (18 U.S.C. §2333), part of the “material support” statutes, allows U.S. persons to sue for any injury caused by an act of international terrorism committed, planned or authorized by an organization that was designated as a Foreign Terrorist Organization (FTO) under Section 219 of the Immigration and National Act.

Jewish National Fund, et al. v. Education for a Just Peace in the Middle East (US Campaign for Palestinian Rights)

The court granted USPCR’s Motion to Dismiss a case brought by JNF and 12 Americans living in Israel, who alleged that USCPR was liable under the Anti-Terrorism Act for damages due to injuries from attacks in Israel because it collects funds from U.S. donors for the Boycott National Committee in Palestine, whose membership includes a coalition that includes Hamas. Read more.

Joshua Atchley et al. v. AstraZeneca UK et al.

Joshua Atchley et al. v. AstraZeneca UK et al, was filed in the U.S. District Court for the District of Columbia in 2017 by veterans of the Iraq war and their families (plaintiffs) for injuries and deaths suffered in the war. The defendants are several major pharmaceutical and health sector companies that responded to a U.S. government request to provide lifesaving medicines to the Iraqi Ministry of Health (Ministry) during the war. The U.S. Supreme Court ruled that training, expert advice or assistance for designated groups is not protected speech and falls within the prohibition on material support of terrorism, even when it is for the purpose of building peace and support for nonviolence. Read more.

Tzvi Weiss, et al. v. National Westminster Bank PLC

In a case that could have serious implications for nonprofit organizations (NPOs) that work to relieve suffering and reduce violence in conflict zones where terrorist groups operate, a group of about 200 U.S. nationals that are victims of attacks by Hamas has asked the Supreme Court to review dismissal of their civil suit against a UK bank that provided financial services to a UK charity that the U.S. listed as a terrorist supporter in 2003 but that has been investigated and cleared by the Charity Commission of England and Wales. The legal issue is what level of knowledge a defendant must have regarding terrorist attacks and associations in order to be held liable for civil damages under the Anti-Terrorism Act (ATA), as amended in 2016 by the Justice Against Sponsors of Terrorism Act (JASTA). Read more.

Twitter v. Taamneh

On May 18, 2023, the Supreme Court of the United States (SCOTUS) decided Twitter v. Taamneh, holding that Twitter is not liable for aiding and abetting under the Anti-Terrorism Act (ATA) for a shooting attack at the Reina nightclub in Istanbul for which the self-styled Islamic State (ISIS) claimed responsibility. SCOTUS ruled that Twitter was not liable for aiding and abetting the Reina attack because it did not “knowingly” provide “substantial assistance” to ISIS under the ATA (18 U.S.C. § 2333). SCOTUS’ opinion narrows the scope of liability under the ATA. In doing so, it offers some assurances to non-governmental organizations (NGOs) providing humanitarian assistance or peacebuilding processes in areas where terrorist groups operate, who are concerned about defending against any allegations that their services would inadvertently support terrorist acts. Read more.

Miscellaneous

The Anti-Terrorism Act (ATA) (18 U.S.C. §2333), part of the “material support” statutes, allows U.S. persons to sue for any injury caused by an act of international terrorism committed, planned or authorized by an organization that was designated as a Foreign Terrorist Organization (FTO) under Section 219 of the Immigration and National Act.

U.S. v. Mubayyid (Care International)

Three former charity officials were convicted of conspiracy to defraud the IRS because they did not include a description of their newsletter content in their tax-exempt status application and annual IRS filings – the government alleged that the group supported jihadist movements in its articles. Read more.

U.S. v. Pirouz Sedaghaty (Pete Seda)

The co-founder of the Al-Haramain charity was sentenced to 33 months in prison for tax evasion and conspiracy to defraud the government following a trial in which the government was criticized for its mishandling of the case. Read more.

Defense for Children International–Palestine, et al. v. Joseph Biden et al.

On Mar. 7, 2024, the Center for Constitutional Rights (CCR), together with co-counsel from Van Der Hout LLP, filed their opening brief to the Ninth Circuit Court of Appeals on behalf of Defense for Children International-Palestine (DCIP), Al Haq, and Palestinian individuals living in Gaza and the United States (U.S.) in a recent lawsuit against the Biden Administration. The lawsuit claims that the U.S. “is failing to uphold its legal obligation to prevent genocide, and President Biden and other high-level officials are actively aiding and abetting the Israeli government’s genocide of the Palestinian people.” Read more