At the Council, we believe that FATF is a global regulatory body that too many foundations do not understand, especially as it relates to their cross-border giving and advocacy for improved enabling environments for grantees around the world. We are, therefore, excited to share a recent webinar from the Global NPO Coalition on FATF which provides a good overview for foundations about what FATF is and what the new standard (Recommendation 8) may mean for nonprofit organizations (including foundations) in the U.S. and around the world.
Laws designed to prevent and combat terrorism have complicated the ability of foundations to fund across international borders. Regulations introduced in the beginning of the 21st century, including the USA PATRIOT Act, are designed to prohibit funding of terrorist organizations or their supporters. For U.S. foundations and others making grants overseas, compliance with these regulations is a necessity. However, their restrictions can be onerous, complicated, and even prohibitive to valuable international philanthropic work.
These resources will help U.S. foundations and grantmakers understand and comply with U.S. anti-terrorism laws and regulations.
In-Depth knowledge on Anti-Terrorism Compliance
Frequently asked questions about legal basics and anti-terrorism.
After September 11, 2001, many grantmakers and other charitable organizations that were not previously familiar with the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), learned of its existence. As one of the key U.S. government agencies seeking to shut down terrorism funding around the world, OFAC has focused attention on charities as one mechanism for providing financial support to terrorists. As a result, grantmakers and others have dedicated more time and effort to OFAC compliance.
Arguments for requiring grantees to certify that they do not and will not knowingly provide material support to any individual or entity furthering terrorist activities and examples of certification language.
Legal issues arise when a private foundation makes a grant to an Initial Grantee that is not a 501(c)(3) organization or that re-grants the Foundation's funds to a Secondary Grantee that is not a 501(c)(3) organization. Most of those issues center around IRS expenditure responsibility rules: specifically, which organization—the private foundation or the Initial Grantee—is responsible for adhering to those rules, if any.
This article provides a general overview of how the U.S. Treasury Department's Office of Foreign Assets Control sanctions programs affect international humanitarian activity.
A plain-language guide to Executive Order 13224, the Patriot Act, embargoes and sanctions, IRS rules, Treasury Department voluntary guidelines, and USAID requirements.
In the wake of the September 11, 2001, terrorist attacks, grantmakers are now being asked for a substantially higher level of due diligence regarding grantees than ever before. The good news is that providers of computer-based products and services are being responsive and beginning to offer grantmakers some practical and cost-effective solutions.