Government Clarifies Antiterror Rules for Federal Charity Campaign

Concerns about antiterrorism requirements have flared once again as part of the Combined Federal Campaign, the annual charity drive for federal workers.

This time the controversy involves local United Ways that administer the campaign in some parts of the country. At issue are reports that some United Ways have required that charities, as a condition of receiving money raised in the drive, comply with antiterrorism rules that go beyond what is required by the federal government.

The concerns follow a move by officials of the Combined Federal Campaign to revise its own antiterrorism standards starting in 2006. Some groups had complained that the current requirements are difficult to follow and overzealous, and ask charities to take on law-enforcement responsibilities better left to the federal government (The Chronicle, November 25, 2004). A lawsuit filed by 13 nonprofit organizations over the antiterrorism certification requirement is still pending.

In the latest development, federal officials notified local United Ways and other groups that administer the Combined Federal Campaign that they cannot impose their own antiterrorism requirements on charities participating in the government drive.

Mike Orenstein, a spokesman for the U.S. Office of Personnel Management — the federal agency that oversees the Combined Federal Campaign — said that “neither the United Way of America nor local United Ways can establish certification criteria on the distribution of CFC funds that is different than that established by OPM’s Office of CFC Operations. Nor can they refuse to distribute funds to CFC-participating charities that have met the certification criteria of the Office of CFC Operations.”

He noted that the United Way of America and local United Ways are free to “establish their own criteria for acceptance into the United Way family.”

Suspect Lists

The federal government requires charities in the fall 2005 Combined Federal Campaign to certify that they do not knowingly employ people or give money to groups whose names appear on two lists of suspected terrorists — one compiled by the Treasury Department and one by the Department of State.

But Mara T. Patermaster, director of the Office of CFC Operations, said the office had received reports from several national and international charities that some organizations had imposed additional antiterrorism requirements on them. In a memorandum sent to organizations that administer the CFC campaign, she said such requirements were not permitted.

The new government warning comes as United Ways across the country are, for the first time, asking charities that receive United Way funds to certify that they do not support terrorism.

In a statement, United Way of America, the umbrella organization for 1,350 United Ways, agreed with the government’s position.

David J. Albritton, a spokesman for the United Way of America, said that his organization last year recommended that local United Ways seek antiterrorism certifications from charities that receive United Way funds. He said local organizations were advised to:

• Check all such agencies against federal terrorism watch lists.
• Require that charities certify that they are not terrorist organizations and do not knowingly provide any kind of support to such groups.
• Have charities provide a certificate to donors who request one that they do not and will not knowingly apply donated funds to support terrorism.

United Ways have sent a form outlining seven antiterrorism requirements to charities that are local United Way “partner agencies” and to charities that are not directly affiliated with the United Way but can receive money from contributors who designate gifts to them. One criterion is a watch-list requirement similar to the federal government’s provision.

Another requires that an organization state that it “does not, will not, and has not knowingly provided financial, technical, in-kind or other material support or resources to any individual or entity that is a terrorist or terrorist organization, or that supports or funds terrorism.”

Even as the lawsuit is pending over requirements for the 2005 Combined Federal Campaign, the government is attempting to streamline its antiterrorism rules for 2006. Under a proposal released in March, the government would not specifically require charities to check names against terrorist watch lists. Instead, charities would have to certify that they are complying with all laws that bar transactions with people and groups subject to sanctions by the Treasury Department.