May 15, 2003 | Read Time: 1 minute
The Internal Revenue Service has asked nonprofit leaders for assistance in crafting guidelines to help foundations and charities avoid using charitable assets to support groups with ties to terrorists — while also not discouraging them from donating to legitimate overseas organizations.
Following the September 11, 2001, terrorist attacks, the federal government determined that money had been funneled through some foundations and charities to terrorist organizations overseas, often without the knowledge of the grant makers or donors.
The revenue service now wants to know what specific safeguards charities and foundations follow to prevent their assets from being diverted for terrorist uses. Among the questions the IRS is asking:
- What kind of research is done before donors decide whether to give to overseas organizations?
- How are grant agreements with such organizations structured?
- How do foundations track grant money after they have disbursed it?
- How often do foundations reassess the operations of a charity that is a longtime aid recipient?
- How do grant makers transfer the money to overseas recipients?
Public comments are due by July 18. They may be mailed to Internal Revenue Service, Attn: T:EP:RA:G (Announcement 2003-29), P.O. Box 7604, Ben Franklin Station, Washington, D.C. 20044. They also may be e-mailed to: Tege.eo2@irs.gov.
Copies of the notice, Announcement 2003-29, are available online at http://www.irs.gov/charities/article/0,,id=101826,00.html.
