Charities Call For Withdrawal of Anti-Terror Guidelines

BNA Money and Politics [1] reports that the Council of Foundations sent a letter [2] 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 [3]. 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."