Nonprofits Question Terror Guidelines

Nonprofit groups say revised government guidelines intended to prevent donor dollars from ending up with terrorists still are too onerous and vague.

In response to complaints from nonprofits, the Treasury Department has twice revised the November 2002 guidelines, first in December 2005 and again two weeks ago. In the first revision, the Treasury dropped certain mandates, such as requiring charities to investigate banking relationships of their aid recipients to ensure they aren't laundering money.

In the latest revision, the Treasury moved or modified certain language, such as clarifying that charities aren't agents of U.S. law enforcement. But it has otherwise largely retained the thrust of the guidelines, according to OMB Watch, a government watchdog group. These include requiring charities to investigate aid recipients by searching "public information" for any terror links; to get recipients to certify that they don't fund groups that "support" terrorism; and to compile contact information for aid recipients' subcontractors.

"Even if it were possible for charitable organizations to collect the suggested information, the costs involved in doing so would likely be prohibitive," the Council on Foundations wrote in February to the Treasurey.

[Excerpt of an article by Sally Beatty, The Wall Street Journal]