03/16/2006
A group of more than 40 U.S. charities, coordinated by the Council on Foundations, requested that the U.S. Department of Treasury withdraw its Anti-Terrorist Financing Revised Guidelines in favor of its own eight-point plan, Principles of International Charity, issued in March 2005. The nonprofits are worried the Federal guidelines will make them de facto government agents in its anti-terrorism efforts.
The charities have three worries about the government guidelines, which were issued in December 2005. They are concerned that the wording links them too closely with the government, potentially undermining trust between U.S. charities and foreign recipients, and possibly making them the targets of extremist groups. The Federal guidelines also increase the amount of information charities collect about donors. And, because the government often incorporates guidelines into rules, the charities fear the revised voluntary guidelines will become mandatory.
The Council on Foundations’ plan states that charities:
- are non-governmental entities,
- adhere to the purpose for which they were chartered,
- exercise fiscal responsibility,
- comply with U.S. laws as well as laws in foreign countries where they work,
- have a governing board that oversees implementation of governance practices,
- take appropriate measures to reduce the risk that their assets would be used for non-charitable purposes,
- monitor recipients, and;
- safeguard relationships with the communities they serves by maintaining their independence.