Advice for Charities and Foundations on Complying With Federal Rules to Deter Financing of Terrorists

The Handbook on Counter-Terrorism Measures: What U.S. Nonprofits and Grantmakers Need to Know, by Edgardo Ramos, Timothy R. Lyman, Patricia Canavan, and Clifford Nichols III, summarizes the potential effects on charitable organizations of rules that the federal government has imposed in recent years to deter terrorism. Among the laws and regulations discussed: the Patriot Act, embargoes and sanctions against countries accused of supporting terrorist organizations, Internal Revenue Service rules, Treasury Department guidelines, and U.S. Agency for International Development requirements. Mr. Ramos, Mr. Lyman, Ms. Canavan, and Mr. Nichols, all lawyers at Day, Berry & Howard, in Hartford, Conn., explain that nonprofit organizations are expected to take “affirmative steps” to make sure that neither financial nor material support ends up in the hands of terrorists and outline penalties that could be imposed on organizations that do not take appropriate actions. The guide also shows charities and foundations where they can find lists of suspected terrorists. It was produced for Independent Sector, InterAction, and the Council on Foundations, all in Washington, and is available on each of their Web sites.

Publisher: Day, Berry & Howard Foundation, c/o Day, Berry & Howard