A new report fromOMB Watch explains concerns about the impact of the war on terror on Muslim charities, and provides a detailed update on the status of U.S.-based Muslim charities that have been shut down by the Treasury Department. Muslim Charities and the War on Terror: Top Ten Concerns and Status Update notes that, “Since the 9/11 terrorist attacks, U.S.-based charities have become targets in the government’s war on terror financing. Despite the sweeping implications for all domestic nonprofit organizations, the lion’s share of the burden of increased scrutiny, suspicion, and pre-emptive action has fallen on Muslim groups. This imbalanced campaign raises significant legal and ethical questions.” The report has been updated to reflect closure of another Muslim charity, on Feb. 19, 2006.

The top ten concerns about the negative overall impact of U.S. anti-terrorism policy on Muslim charities are:

1. Drastic sanctions in anti-terrorist financing laws are being used to shut down entire organizations, resulting in loss of badly needed humanitarian assistance around the world and creating a climate of fear in the nonprofit sector.
2. Despite sweeping post-9/11 investigative powers, authorities have failed to produce significant evidence of terror financing by U.S.-based charities.
3. Questionable evidence has been used to shut down the largest U.S.-based Muslim charities.
4. Anti-terrorist financing policies deny charities fundamental due process.
5. There are no safe harbor procedures to protect charities acting in good faith or to eliminate the risk of giving to Muslim charities or charitable programs working with Muslim populations.
6. Government action has created the perception of ethnic profiling and negatively impacted Muslim giving.
7. Organizations and individuals suspected of supporting terrorism are guilty until proven innocent.
8. Charitable funds have been withheld from people in need of assistance and diverted to help pay judgments in unrelated lawsuits, violating the intentions of innocent Muslim donors.
9. There is unequal enforcement of anti-terrorist financing laws.
10. Treatment of Muslim charities hurts, not helps, the war on terrorism.

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Introduction to the OMB Report Revised March 2006:

Since the 9/11 terrorist attacks, U.S.-based charities have become targets in the government’s war on terror financing. This development makes little sense. U.S. charities support efforts to stop the violence of terrorism,
and financing terror is contrary to the sector’s mission of promoting the public good, providing humanitarian relief, protecting human rights and assisting with conflict resolution around the world. Despite the sweeping
implications for all domestic nonprofit organizations, the lion’s share of the burden of increased scrutiny, suspicion, and pre-emptive action has fallen on Muslim groups. This imbalanced campaign raises significant legal and ethical questions.

This paper lists issues that the charitable sector and the public must address in order to correct an unfair process and make the war on terror most effective. Part 1 lists our top ten concerns about the way the war on terror has impacted U.S. Muslim charities, and Part 2 provides an update on charities that have been shut down by the Treasury Department or made the target of official investigations.

Kay Guinane, Counsel for the Nonprofit Advocacy Project, directed the research, writing, and production of this project. She was assisted by Amanda Horwitz. Anna Oman designed the report.

OMB Watch
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http://www.ombwatch.org
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Link to: full OMB report