From the National Council of Nonprofits-
Standing Up for Due Process:
This week, the House is expected to once again consider the Stop Terror-Financing and Tax Penalties on American Hostages Act (H.R. 9495), which targets relief for hostages of terrorism while ostensibly strengthening tools to curb terrorism financing. Four national organizations – the Council on Foundations, Independent Sector, National Council of Nonprofits, and United Philanthropy Forum – sent a letter to the House expressing opposition to the portion of the bill that would give the Treasury Secretary nearly unfettered power to revoke the tax-exempt status of charitable nonprofits that the Secretary alleges supports terrorist activities. The letter expresses concern that the legislation would impose “redundancies and confusion while providing the executive branch with expansive new authority that could be abused.” The ACLU and many other organizations have lined up in strong opposition as well. A version of the bill passed earlier this year but failed on a procedural vote last week.
NOTE: After a failed vote last week that required a 2/3 majority, the House is expected to try again this Thursday and will only need a simple majority for it to pass. Roll call votes from last week can be found here – please encourage your networks in other states with representatives who voted in favor of the bill to take urgent action and educate lawmakers about the impact this bill could have on nonprofits. Thank you to Vermont Representative Becca Balint for voting “no”!
More information:
- NPQ: Bill Threatening Nonprofits Advances in US House—Again
- Statement from Maine Association of Nonprofits
- Nonprofit Times: Update: Bill To Pull Exempt Status Headed To House For Vote
UPDATE 11/21:
On 11/21/24, the Stop Terror-Financing and Tax Penalties on American Hostages Act (H.R. 9495) passed the House with 219 voting in favor, 184 against, and 30 not voting. While advocacy from nonprofits and others was successful in flipping many “yes” votes to “no”, it was not enough to prevent a simple majority in favor.
It’s not likely that the Senate will pick up this bill before the 118th congress adjourns, but we do anticipate efforts to revoke tax-exempt status of various disfavored nonprofits to persist. We will be closely monitoring this issue going forward and share any new developments. Thank you to all who reached out and stood up in defense of our sector.