Action Alert: Contact Rep. Jared Golden to vote No on H.R. 9495
For an update on H.R. 9495, see this post.
Maine Association of Nonprofits (MANP) is tracking H.R.9495, a bill in Congress that could seriously harm nonprofits and has received renewed attention this week.
This legislation would allow the Secretary of the Treasury to designate section 501(c) nonprofits as “terrorist supporting organizations” at the Secretary’s discretion, without requiring the Secretary to share their full evidence or reasoning with accused nonprofits.
Furthermore, the legislation runs counter to constitutional due process protections by placing the burden of proof on the accused organization and providing only 90 days for organizations to demonstrate their innocence before revoking their tax-exempt status.
Our concerns are due to:
- Lack of Transparency: H.R.9495 gives the Treasury Secretary excessive authority to label nonprofits as "terrorist-supporting" without requiring evidence disclosure, risking arbitrary decisions.
- Erosion of Due Process: The bill undermines constitutional protections by forcing nonprofits to prove their innocence within just 90 days.
- Harm to the Sector: A false designation can irreparably damage an organization's reputation, disrupt operations, and erode public trust.
- Threat to Humanitarian Aid: The bill could penalize nonprofits delivering life-saving aid in conflict zones, discouraging vital work.
- Redundant Regulations: Existing laws already address material support to terrorism, making these provisions unnecessary and overly burdensome.
- Disproportionate Impact on Small Organizations: 88% of nonprofits in Maine have budgets under $500,000, and they won't have access to the sophisticated legal counsel needed to appeal potential accusations.
MANP condemns any fraudulent use of 501(c)(3) status, and uses our platform to advocate for appropriate accountability of the sector. We are concerned that this bill would go far beyond appropriate accountability, and has an unacceptable risk of unintended consequences for the nonprofit community.
Take Action
Maine U.S. Rep. Jared Golden (D-ME-2nd Congressional District) voted to support this bill when it was heard last week. The bill failed a procedural vote with 256 voting for and 145 against (it needed 2/3 majority to pass), but will likely be heard again during the week of November 18-22, 2024.
MANP strongly encourages Maine nonprofits to contact Rep. Golden’s office and urge him to flip his vote to NO when H.R.9495 again goes to the House floor later this week.
The vote was largely along party lines, and Rep. Pingree voted NO.
Sample Email Script
SUBJECT LINE: Vote NO on HR 9495
Dear Representative Golden,
The U.S. House of Representatives is preparing to reconsider H.R. 9495, legislation that would empower the U.S. Treasury Secretary to unilaterally deem nonprofits as terrorist-supporting organizations and revoke their tax exemptions with little due process. This bill failed to pass the House on November 12, but the House is planning to take it up again starting November 18.H.R. 9495, the “Stop Terror-Financing and Tax Penalties on American Hostages Act,” purports to stop bad actors from using nonprofit organizations to fund terrorism, as is already prohibited under current law. It also includes some laudable provisions to extend tax deadlines for those unlawfully or wrongfully detained or held hostage abroad.
But H.R. 9495 goes much, much farther, building on provisions in previous legislation, H.R. 6408, to empower the Secretary of Treasury to designate 501(c) organizations as “terrorist supporting organizations” and revoke their tax-exempt status with minimal due process. It would allow the Secretary to bring such accusations without disclosing the evidence behind them and would place the burden of proof on the organization to disprove the allegations. The potential for overreach, subjective application, and abuse of this authority is enormous, and the consequences for organizations and the people they serve cannot be overstated.
Representative Golden, we urge you to vote NO when HR 9495 again goes to the House Floor later this week.
Sincerely,
Name and Nonprofit Organization (mention if you or your org are constituents in Congressional District 2)
Sample Phone Script
Hello, my name is _______ and I work at _________,* and [describe your connection to Rep. Golden’s district — maybe you’re a constituent, or your nonprofit does work in his district].
I’m calling to urge Rep. Golden to change his vote NO on HR 9495. This bill could be extremely detrimental to the nonprofit sector.
Contact Rep. Golden
Washington, DC Office Phone: (202) 225-6306
Bangor, ME Office Phone: (207) 249-7400
Caribou, ME Office Phone: (207) 492-6009
Lewiston, ME Office Phone: (207) 241-6767
You can also call Senator King's office to voice your concerns about the Senate companion bill (S.4136), which Senator King is co-sponsoring.
Learn More
This week, the House is expected to once again consider the H.R. 9495, the Stop Terror-Financing and Tax Penalties on American Hostages Act (H.R. 9495), which targets relief for hostages of terrorism while strengthening tools to curb terrorism financing.
The bill also has a provision which, if signed into law, would give the Treasury Secretary “nearly unfettered power to revoke the tax-exempt status of charitable nonprofits that the Secretary alleges supports terrorist activities.”
HR 9495 was also voted down on November 12, 2024. See the vote breakdown.
- Joint Statement in Opposition from Council on Foundations, Independent Sector, National Council of Nonprofits, and United Philanthropy Forum
- ACLU Sign on Letter
- House narrowly rejects bill to give US new power to vet nonprofits, Washington Post
- Rep. Don Beyer introduced an amendment which would eliminate the relevant provision while still allowing for relief for hostages