Obama Urged to Overturn International Aid Rules Opposed by Charities

With Barack Obama set to enter the White House in January, international aid groups are hoping his administration will reverse controversial antiterrorism programs that affect charities.

One concern is the so-called Partner Vetting System proposed by the U.S. Agency for International Development. Under the system, nonprofit groups that apply for agency grants must provide the names of “key individuals” overseeing their projects, including board members, executives, and other employees.

The federal aid organization would then check the names against a classified federal database that contains information on terrorists.

Samuel A. Worthington, president of InterAction, a Washington group that represents more than 160 international charities, said he has raised concerns about the proposal with Mr. Obama’s transition aides. He said the program violates the privacy rights of charity employees and could place workers in danger overseas.

Currently the program is operating in Gaza and the West Bank because of the security concerns in those areas.

James R. Kunder, acting deputy administrator for the U.S. aid agency, said the organization must do everything it can to prevent federal dollars from helping terrorists and is considering expanding the program before the change in administration.

“The final decision has not been made,” he said. “We would probably do it in a limited number of trial countries for an initial period to further test the operation of the system, but we have not announced what those countries might be.” Mr. Worthington said the agency would probably start the program in Iran and Pakistan. While an Obama administration might reverse the decision, he said, if the screening were to begin in those countries, it would hurt relationships charities have built with tribal leaders, because the groups would be seen as working for U.S. intelligence agencies.

“Once the door’s open, it’s open,” he said.

He said if the agency does expand the antiterrorism screening effort in the next few weeks, InterAction may sue the government. “We’re considering all means to stop this, including legal action.”

Terrorist Guidelines

Nonprofit groups also want the Obama administration to revise guidelines from the U.S. Treasury Department that seek to keep charitable giving from flowing inadvertently to terrorists.

Kay Guinane, director for nonprofit speech rights at OMB Watch, an advocacy group in Washington, said that while voluntary, the guidelines are too onerous and that the threat of philanthropic dollars going to violent extremists has been exaggerated.

She also said she would like Mr. Obama to scrap an executive order, issued on September 23, 2001, that allows the government to freeze the assets of nonprofit groups and other entities on suspicion of terrorist activities.

So far the government has seized $20.7-million in charitable assets under the order, she said.

The Bush administration has argued that the order — and the guidelines — has helped America disrupt a significant amount of financial support for violent activities.

Global ‘Gag Rule’

Aside from Bush administration measures to prevent terrorism, many international charities are optimistic that Mr. Obama will overturn the so-called global gag rule, which prevents government money from supporting family-planning groups that counsel women overseas about the availability of abortion.

An informal group of charities is working with his transition aides to discuss the possible repeal of the rule, which was first implemented by President Reagan and later reinstated by President George W. Bush when he took office in January 2001.

“We’re confident that President-elect Obama recognizes that this is a destructive policy and is having a horrible impact on women’s health,” said Tod Preston, vice president of U.S. government relations at Population Action International, an advocacy group in Washington. “It’s not reducing abortion; if anything, it’s increasing the number of abortions and unintended pregnancies.”

Charities are also pushing Senator Obama to restore money for the U.N. Population Fund, which the Bush administration has withheld over disagreements surrounding the agency’s work in China.

Caroline Preston contributed to this article.