To designate an organization, the United States government (USG) only needs to have a “reasonable suspicion” that it is providing “financial, material, or technological support for, or financial or other services to” a designated terrorist organization or “otherwise associate[ing]” with a designated organization. Consequences of designation include the seizing and freezing of all tangible and financial assets and significant civil and criminal penalties. Designated organizations may be Foreign Terrorist Organizations (FTO) listed by the Secretary of State, Specially Designated Terrorist (SDT) listed by the Department of Treasury, or Specially Designated Global Terrorists (SDGT) also listed by Treasury.

In October 2001, the Patriot Act expanded the International Emergency Economic Powers Act (IEEPA) by allowing sanctions pending an investigation, so that “all the blocking effects of a designation, including freezing an organization’s assets indefinitely and criminalizing all its transactions, without designating it as a SDGT. Treasury only needs to assert that it is investigating whether the entity should be designated.” It also allows the court to review classified information in the agency record without notice to or knowledge of the blocked organization.

Penalties for charities suspected of violating U.S. counterterrorism policies can be severe: organizations can be raided and destroyed, and officers sentenced to life imprisonment. If a charity’s assets and funds, including donations, are seized by the government, there is no process to release the charitable funds to programs that respect the intentions of the donors.

Feature Resources

Summary of Economic Sanctions Laws and Regulations Authorizing Treasury to Shut Down Charities
Mind the Gap: When It Comes To Nonprofits the Tax Code and Sanctions Regime Are In Conflict
Model Policies for Fair Procedures for Listing and Delisting U.S. Charities

Terrorist Listings and Due Process

July 17th, 2019|

Analysis Rule Allows Charities Listed as Terrorist Supporters to Access, Pay Lawyers in Most Cases  Additional Resources ACLU: Briefing Paper on the "Specially-Designated Global Terrorist" Designation Scheme and its Consitutional Flaws

Ellison Dear Colleague letter September 2017

September 13th, 2017|

Subject: e-DearColleague: Oppose DeSantis Amendment #115 to SFOPS Oppose DeSantis Amendment #115 to SFOPS Sending Office: Honorable Keith Ellison Oppose DeSantis Amendment #115 to SFOPS Organizations opposing DeSantis Amendment #115 include: InterAction, Bread for the World,

If it Ain’t Broke …..

August 14th, 2017|

As the old saying goes, if it ain’t broke, don’t fix it. The spokesman for the “let’s-shut-down-U.S.-charities-because-they’re-conduits-for-terror-finance” school of thought has been pushing this outdated and discredited narrative in Washington, D.C. over the past year

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