Torches are lit and pitchforks are sharpened. We’re one Bill away from losing it all.
On November 21, 2024, the House passed H.R. 9495, known as the "Stop Terror-Financing and Tax Penalties on American Hostages Act." It was sent to the Senate, but no further action has occurred. It remains pending in the Senate.
Why does this matter?
You’ve heard the saying about a wolf in sheep’s clothing? If this bill passes into law, it could give the Secretary of the Treasury the power to deem any non profit ‘terrorists’ and shut them down ‘just because’—no solid evidence needed and no chance for these groups to defend themselves or appeal.
Why care?
So glad you asked – If this makes it to law it could silence voices and control groups just because their views don’t align with those at the top. And when political parties swap places, new targets get identified. Without needing to show real proof, the government could label any nonprofit they choose as supporting terrorism. The tools meant to protect us would be used to stifle legitimate debate and dissent.
Your assets, freedom of speech, and ability to organize are at risk.
Legal experts and civil liberties advocates warn that this could set a dangerous precedent, undermining the rule of law and enabling potential government overreach.
Churches, temples, mosques, and family foundations, you will not be exempt from this legislation. If your organization is targeted, all assets will be seized.
At a time in our history when our President-Elect has stated publicly that he will prosecute his political opponents, this legislation leaves anyone open to potential misuse of power and politically motivated investigations.
What happens to Nonprofits matters to all of us
Nonprofits do the heavy lifting in areas the private sector and government won’t touch or can’t do as affordably. They advocate for social justice, step in during disasters, push for educational reforms, medical care, and so much more. They fill the cracks that form in society. In 2022, these organizations weren't just a small footnote; they contributed significantly to our economy – 5.6% to our GDP and provided jobs for millions.
The implications of such sweeping legislation are profound. Make the wrong person mad, stand on the ‘wrong’ side of a recent election and your legal, compliant organization may still be at risk of being labeled a funding terrorism and being closed. The uncertainty of being mislabeled and punished without due cause could stifle charitable donations, as donors might be apprehensive about their contributions potentially being misinterpreted.
There are existing safeguards – audits, reporting requirements, and oversight. For example, nonprofits are required to go through financial audits conducted by independent third parties. They’re required to file the IRS form 990 annually; a publicly available and comprehensive overview of their activities. All that in addition to state and federal level regulations, all followed closely by charity watchdogs. So no terrorist activity would go unnoticed.
The H.R. 9495 bill is an effort to control and punish, not protect, and fix.
So, What Can We Do?
1. Call your Senators (find your senator here)
2. Get involved with advocacy groups
3. Speak out - let your voice be heard loud and clear.
The clock's ticking, and it’s moments like these that remind us of the power of collective action. As this bill moves to the Senate, stay informed, engaged, and ready to stand up for your rights. The future of so many crucial nonprofits—and the very principles of our democracy—might just depend on it.
*Update: The 118th Congress concluded (January 3, 2025). This bill expired and officially died in the legislative process. While it is not law, it set precedent and is a signal of what may come. This bill (under a new number), may be reintroduced.
**NOTE: Written & published Nov 2024. At the time of your reading, (e.g. then President-Elect, may currently be the President) what was present tense, may be past tense.