POE INTRODUCES LEGISLATION TARGETING INDIVIDUALS WITH

TIES TO TERROR IN THE NON-PROFIT WORLD

 

WASHINGTON, D.C.Congressman Ted Poe (TX-02), Chairman of the House Subcommittee on Terrorism, has introduced H.R. 5185, the Charity Transparency Act of 2016. This bill will amend the Internal Revenue Code of 1986 to require disclosure of charity employees and board members previously implicated in financially supporting a designated foreign terrorist organization. 

“America is home to some of the best non-profit organizations in the world. Unfortunately, the non-profit community has been polluted by individuals with ties to terrorism,” said Chairman Poe. “Right now, individuals who have been identified and flagged are able to freely move to other non-profit organizations without the knowledge of their donors. Individuals with ties to terrorism should not be involved in the American non-profit world, period. If they are, donors of organizations must be made aware of who is employed by the non-profit they are donating to. The Charity Transparency Act of 2015 will require that.”

THE PROBLEM:

  • Right now, there are former employees of charities that were disbanded for funneling money to designated foreign terrorist groups holding leadership positions in new charities with donors oblivious to their questionable employment histories.
  • The Treasury Department and the IRS must protect donors by requiring greater transparency.
  • At a recent subcommittee hearing, it was revealed that numerous employees of charities shut down by Treasury for sending money to terrorist organizations are currently working in new 501(c)(3) organizations unbeknownst to many of the non-profit’s donors.
  • Charitable individuals who might be interested in making donations to these tax exempt organizations currently have no way of knowing that employees in their leadership positions were formerly employed at organizations engaged in illicit activity.

THE SOLUTION:

  • H.R. 5185, The Charity Transparency Act of 2015, would address this issue and grant greater access to information to potential donors. The bill requires organizations applying for 501(c)(3) status, as well as those renewing their application for the tax exemption, to disclose if any of their employees in leadership positions were previously employed at organizations disbanded on terrorism finance grounds, blocked pending investigation, or found civilly liable in supporting terrorist groups.

 

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