Advocacy Action Center

Welcome to Gw/oB's Advocacy Action Center! Here you can learn more about existing and proposed policies that impact international grantmaking, as well as what Gw/oB is doing to encourage lawmakers to adopt policies that protect the valuable work of international grantmakers.

New Fact Sheets Provide Concise Explanation of How the War on Terror Hampers Charitable Activities
On September 15, 2008, the Global Nonprofit Information Network (GNIN) released seven fact sheets that concisely document how the war on terror hampers charitable activities. Current counterterrorism measures rely on ineffective and burdensome due diligence measures that provide no protection against legal sanction and unpredictably result in penalties that are disproportionately harsh. GNIN concludes that, "a better federal counterterrorism strategy would improve charities' effectiveness and keep America safer." The GNIN fact sheets are available click here.

Gw/oB Releases Collateral Damage: How the War on Terror Hurts Charities, Foundations, and the People They Serve
On July 14, 2008, Gw/oB and OMB Watch released Collateral Damage: How the War on Terror Hurts Charities, Foundations, and the People They Serve. Collateral Damage documents the impacts that the war on terror is having on charities, foundations, and underserved populations around the globe. The authors make it clear that shortsighted, undemocratic policies are stifling free speech, constraining the critical activities of the charitable and philanthropic sectors, and ultimately impeding the fight against terrorism. Rather than recognizing the sector as a valuable ally in the war on terror, government unfairly characterizes nonprofits as conduits for terrorist funding and a breeding ground for aggressive dissent.
To read Gw/oB's press release and the report, please click here.

Gw/oB Submits Comments on Draft Instructions to Redesigned Form 990
On May 27, 2008, Gw/oB submitted comments to the IRS regarding the Draft Instructions to the Redesigned Form 990. Gw/oB's comments focus exclusively on the instructions for Schedule F: Statement of Activities Outside the United States. The IRS expects the redesigned Form 990 to be ready for use by the 2008 tax year (returns filed in 2009).

Gw/oB's comments specifically address the following four concerns:

• Schedule F must be afforded some degree of privacy and confidentiality in order to protect the work and lives of grantees that operate in hostile environments.
• The instructions for Schedule F, Part II, column (d) preclude the reporting of general support grants.
• The instructions for Schedule F, Part II, Line 2 fail to preempt any misconception about the legality of grantmaking public charities supporting organizations not recognized within their foreign country or equivalent to a 501(c)(3) public charity.
• Why does the definition for "foreign individual" include U.S. citizens living outside the U.S.?

If you would like to read Gw/oB comments, please click here. Gw/oB will keep you posted on any further developments.

Gw/oB Asks House Judiciary Committee to Investigate the Impact of Counterterrorism Programs on Philanthropy
On February 29, 2008, Gw/oB signed a joint letter seeking House Judiciary Committee oversight on the impact of counterterrorism programs on charities, philanthropy and their beneficiaries. The letters asks the Committee to examine any negative impacts and explore remedies that promote both charitable works and national security.

No Convictions in Holy Land Foundation Trial --- What Does This Say About the Financial War on Terror and Charities?
On Monday, October 22, 2007, none of the defendants in the Holy Land Foundation for Relief and Development trial were convicted. In fact, the jury remained deadlocked on most of the 197 charges, resulting in Judge A. Joe Fish declaring a mistrial.

Grantmakers Without Borders hopes Monday‰s mistrial will provide a wake-up call, drawing attention to the flawed financial war on terror and the collateral damage it creates throughout the charitable community. To read Gw/oB's complete comments regarding the Holy Land Foundation verdict, please click here.

Gw/oB Submits Comments on Draft Redesigned Form 990
On September 14, 2007, Gw/oB submitted comments to the IRS regarding the Draft Redesigned Form 990. Gw/oB's comments focus exclusively on Schedule F: Statement of Activities Outside the United States. The IRS expects the redesigned Form 990 to be ready for use by the 2008 tax year (returns filed in 2009).

Gw/oB's comments specifically address the following three concerns:

• Ambiguity within Schedule F, Question 2 may imply due diligence requirements beyond what is legally required by grantmaking organizations.
• Inadequate instructions for Schedule F, Question 3 could dissuade grantmaking public charities from making highly impactful international advocacy grants. Furthermore, the legal definition of lobbying can be difficult to apply in international settings. Consequently, additional guidance is needed.
• Schedule F must be afforded some degree of privacy and confidentiality in order to protect the work and lives of grantees that operate in hostile environments.

If you would like to read Gw/oB comments, please click here. The IRS has created a web page that links to all submitted comments. Gw/oB will keep you posted on any further developments.

Gw/oB Submits Comments to the House Ways and Means Subcommittee on Oversight
On July 24, 2007, the House Ways and Means Subcommittee on Oversight hosted a hearing on tax-exempt organizations. Gw/oB submitted comments for the record asking for the IRA Charitable Rollover to be extended beyond 2007 and expanded to include private foundations. Gw/oB also urged Congress to resist any legal changes to the operation and management of donor advised funds that unnecessarily impede their use for charitable giving to the Third World.

In addition, during the hearing Congressman Pascrell referenced a recent Treasury Inspector General Report released on May 21, 2007 and noted that the Department of the Treasury seems to be "painting the sector with a wide brush." Gw/oB's comments specifically responded to Congressman Pascrell's statements.

Gw/oB Challenges the Department of Treasury's Testimony Before the Senate Homeland Security and Governmental Affairs Committee
On May 10, 2007, Chip Poncy, the Director of the Department of Treasury's Office of Strategic Policy for Terrorist Financing and Financial Crimes, testified before the U.S. Senate Homeland Security and Governmental Affairs Committee. Throughout his testimony, Mr. Poncy characterized the Department of Treasury's relationship with the charitable sector as "close" and claimed "extensive consultation" in issues relating to counter terrorism. As an example of "how this partnership can produce significant results," Mr. Poncy highlighted the "U.S. Department of Treasury Anti-Terrorist Financing Guidelines: Voluntary Best Practices for the U.S.-Based Charities" (Guidelines) and the "Risk Matrix for the Charitable Sector" (Risk Matrix). Gw/oB sent a letter to Senators Lieberman and Collins, the Committee Chairman and Ranking Member, strongly objecting to Mr. Poncy's testimony.

The Committee has since met with Gw/oB and listened to its concerns regarding the Department of Treasury's counter terrorism measures. Gw/oB's staff hopes this meeting has opened a door to further dialogue and action with the U.S. Congress regarding the Department of Treasury.

Charities Object to Treasury's Broad Allegations of Ties to Terrorism
Grantmakers Without Borders, OMB Watch, the American Civil Liberties Union and several other charitable organizations sent a letter June 8 to Treasury Secretary Henry Paulson objecting to the Department of the Treasury's continued broad allegations of ties between the nonprofit sector and criminal activity associated with terrorism.

The charities' letter pointed out that Treasury's allegations are based on overbroad and unsubstantiated statements, not hard facts. The nonprofit sector as a whole has not and does not support criminal activity associated with terrorism. In fact, the sector works tirelessly on the ground in war zones and countries plagued by violence, combating poverty, oppression and other root causes of terrorism.

The letter also noted that government's claims inflict real, ongoing harm on nonprofit organizations, causing a loss of public confidence in the charitable sector as a whole.

The groups urged Paulson to make amends and support the sector. "We call on you to issue a statement recognizing the importance of U.S. charities, both at home and abroad," the groups requested in the letter.

Gw/oB Circulates Letter and Press Release Opposing the Department of Treasury's "Risk Matrix for the Charitable Sector"
On May 30, 2007, Gw/oB voiced its objections to the "Risk Matrix for the Charitable Sector" with a letter to the Department of the Treasury. Click here to read Gw/oB's press release and letter.

Gw/oB Raises Concerns About Centralized Repository of Information on Foreign NGOs
Currently, Council on Foundations, Foundation Center, InterAction, and Independent Sector (collectively known as the "Advisory Council") are exploring the feasibility of a centralized repository of information on foreign NGOs ("repository"). This repository would house a central database of 501(c)(3) equivalency determination affidavits and run list-checking software on all participating NGOs.

Although the repository has the potential to simplify and streamline the grantmaking process for some grantmakers wishing to make grants overseas, there are many foreseeable issues that Gw/oB has raised with the Advisory Council (letter to Advisory Council).

• The repository may be viewed as a database of "legitimate" NGOs. This ignores the fact that some NGOs that work on contentious issues in volatile locations may choose not to participate in the repository for safety and privacy reasons (many progressive human rights organizations fall into this category).
• Some grantmakers may rely exclusively on the repository as the on-line catalogue of foreign grantees, unfairly excluding those NGOs that are unable to participate or choose not to do so.
• Gw/oB does not support the proposed addition of list-checking software to the repository. It's true that many foundations find list-checking to be the easiest way to act in accordance with US law, but many other foundations refuse to adopt list-checking into their grantmaking practices, citing Constitutional objections to the existence and structure of the lists. Adopting list-checking software into the repository excludes those objecting foundations and normalizes a practice that many feel should be abandoned.

These issues must be addressed by the Advisory Council during the feasibility period of the repository.

Gw/oB Submits Comments To the IRS Regarding Donor Advised Funds
Pursuant to the Pension Protection Act, the Internal Revenue Service is conducting a one-year study on the organization and operation of donor advised funds (the results are expected in August, 2007). Gw/oB has submitted comments highlighting the importance of donor advised funds to international grantmaking. These comments are in response to IRS Notice 2007-21. Click here to read Gw/oB's comments.

The Chiquita Case and Unequal Treatment Under The Law
On March 14, Chiquita Brands International was fined $25 million for admittedly paying a designated foreign terrorist organization, United Self-Defense Forces of Columbia (known as the AUC by its Spanish initials), to protect its banana crops. Chiquita's treatment and punishment by the US government contrasts significantly with that afforded six American Muslim charities that have been shut down as alleged supporters of terrorism. Kinder USA, a member of Gw/oB, has written a terrific op-ed highlighting these differences. To read Kinder USA's op-ed, click here.

One would assume that Chiquita's admission would warrant the more severe consequences. However, Chiquita continues to operate (the $25 million fine is unlikely to affect its $4.5 billion operations) while the six American Muslim charities have had their assets frozen, their organizations listed as supporters of terrorism, their employees denied their livelihoods, and many of their leaders indicted - all on the basis of questionable testimony from questionable informants, shoddy translations, and secret evidence that neither the accused nor their attorneys are allowed to view. Not to mention the countless other victims who were beneficiaries of these organization's philanthropic activities.

Educate Your Representatives
Congressional representatives and staffers are alarmingly unaware of the valuable philanthropic work being done by international grantmakers. Even more significant, they are mostly oblivious to the existing and potential consequences of regulations and legislation on that philanthropic work. Therefore, Gw/oB created a suggested letter template that anyone may use to introduce their organization to Congressional Representatives. Gw/oB encourages organizations to include the section asking for an appointment with representatives. Meetings can be scheduled at representatives' D.C. offices or in local district offices. Click here to download the letter template.

Gw/oB Supports Bill to Extend the IRA Charitable Rollover
In 2006, Congress passed the Pension Protection Act which includes a limited charitable rollover provision. This provision allows a taxpayer age 70% or older to make a tax-free distribution up to $100,000 from their traditional IRA account to a 501(c)(3) public charity until December 31, 2007. Gifts to donor-advised funds, supporting organizations, and private foundation do not qualify under this provision.

On March 8, 2007, Senators Dorgan (D-ND) and Snowe (R-ME) introduced the "Public Good IRA Rollover Act of 2007." If passed, this legislation will extend the IRA charitable rollover provision beyond 2007 and includes gifts to donor-advised funds, supporting organizations, and private foundations. Representatives Pomeroy (D-ND) and Herger (R-CA) are expected to introduce a House companion bill.

Independent Sector and the National Committee on Planned Giving have organized a IRA Rollover Coalition and written a sign-on letter supporting the legislation. Gw/oB has signed the letter. Click here to download the sign-on letter.

Gw/oB Circulates Letter and Press Release Opposing Treasury Guidelines
On December 22, 2006, Gw/oB voiced its objections to the "U.S. Department of the Treasury Anti-Terrorist Financing Guidelines" with a letter to the Department of the Treasury. Click here to read Gw/oB's press release and letter.

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