Third Sector New England (TSNE) is a 501(c)(3) that is dedicated to strengthening nonprofit organizations. TSNE is also apart of the signatories to the letter for Treasury Secretary Paulson asking that frozen funds belonging to charities designated as supporters of terrorism be released for charitable purposes. The letter makes no claim on whether the groups' designations were accurate, but calls for putting the funds to use as intended, charity. TSNE informs its members that as nonprofits they too can be apart of this effort to have the frozen donations released. TSNE provides ideas of ways to become involved, including sending a letter to the editor, contacting elected officials, and sending a letter to Treasury Secretary Henry M. Paulson, Jr.

BNA Money and Politics reports that the Council of Foundations sent a letter to Treasury Secretary Paulson on behalf of the Treasury Guidelines Working Group. OMB Watch is apart of the Working Group, that is once again asking for the withdrawal of the Anti-terrorist Financing Guidelines: Voluntary Best Practices for U.S.-based Charities. This latest version released September 29, 2006, includes some of the group's suggested changes, but the letter expresses the consensus that numerous concerns remain. As the letter states, "the Guidelines significantly exaggerate the extent to which U.S. charities have served as a source of terrorist funding." The administrative burden of information collection and reporting requirements results in less time that can be spent for program activities. The Guidelines are set as voluntary by the Treasury Department, yet organizations have been suspected of incompliance. "Members of the Working Group are also aware that IRS agents--both in the context of audits and exemption applications--have questioned organizations about their compliance with the Guidelines. If the Guidelines are voluntary, they should not become a criterion for evaluating tax-exempt status."

The Detroit Free Press reports that the Justice Department might become involved in a case between Life for Relief and Development and Comerica Bank. The organization decided to sue Comerica Bank for violating their civil rights in threatening to close the charity's bank accounts. The suite challenges a section of the Patriot Act that allows financial institutions to share information about suspected money laundering or terrorist activity. The Justice Department might now step in to defend the contested part of the Patriot Act.

The European Court of Justice reversed a European Union (EU) decision that in 2002 froze the funds of People's Holy Warriors, an exiled Iranian opposition group. The court ruling was based on the decision that the EU had not provided sufficient reasons to freeze the organization’s assets and did not provide a fair hearing. This decision could be encouraging for the groups whose assets are frozen in the United States. The New York Times covered this story.

"All restrictions resulting from the terror tag should be removed from the Iranian resistance immediately," the group’s leader, Maryam Rajavi, said during a visit to the European Parliament in Strasbourg, France. She said that the ruling proved that her organization was a legitimate resistance movement rather than a terrorist group.

A notable New York Times article covers new action that is being taken to challenge the Treasury Department's process for designating charities as supporters of terrorism. The Treasury Department has designated five U.S. Muslim charities as terrorist supporters seizing millions of dollars in assets, including the largest Holy Land Foundation. On Monday Holy Land sued seeking dismissal of over half of the charges against them. This decision to sue was based on the ruling last month in a Federal District Court in Los Angeles. The judge ruled that an executive order used to designate terrorist supporters violated the Constitution because it was too vague. Lawyers representing two other charities are likely to file similar motions. The Treasury Department has declined requests to unfreeze the charities' assets so they can be sent abroad for charitable purposes. OMB Watch signed and was actively involved in a letter sent to Treasury Secretary Henry M. Paulson Jr. asking for the release of the assets. Kay Guinane of OMB Watch was quoted in the article numerous times.

The issue is whether there is a fair process to determine that and how to protect the charitable dollars so they are used for the intended purposes,” Ms. Guinane said. “What Treasury has done is treat charities the same way they treat the criminal process. It has really hurt the U.S. image in the places where the aid was expected and where people were depending on it.