Kentucky nonprofits express concern over federal bill that could financially punish over claims of supporting terrorism
Nov 24, 2024
Kentucky nonprofits say they’re concerned about a federal bill that would give the executive branch sole power to financially punish them on the grounds of supporting terrorism.
H.R. 9495 would give the U.S. Treasury power to strip nonprofits of their tax-exempt status. The measure is paired with a less controversial measure that would grant tax relief for U.S. nationals who are wrongfully detained or held hostage abroad. It was filed in response to campus protests against the Israeli government, according to a House of Representatives report.
A nonprofit would have 90 days to appeal the label through the IRS or the courts.
The bill does not include language that clarifies how that label can be applied. Opponents like the American Civil Liberties Union say it could be abused to target nonprofits an administration opposes.
Angela Cooper is a spokesperson for the ACLU of Kentucky. She says the legislation could present a free speech issue.
“It feels like this would open the door to target nonprofits that the administration does not like. And certainly one of our mottos here at the ACLU, and my personal favorite, is that dissent is patriotic,” Cooper said. “We don’t want to see dissent stifled.”
Danielle Clore is the CEO of Kentucky Nonprofit Network. She’s concerned there’s a lack of due process in the bill, which could harm both a nonprofit’s finances and reputation.
“Essentially the allegations are assumed to be true, and then the nonprofit has to disprove them, rather than, typically in this country, it’s the other way around,” Clore said. “You’re innocent until proven guilty. So that is certainly a concern.”
Clore also says she’s concerned there’s a lower standard of proof for what constitutes supporting terrorism than actual terrorist acts.
“If I provide shelter to someone who is a member of a terrorist organization, I don’t know that,” Clore said. “As a nonprofit, they likely do not self-identify with our organization, and so would I be, quote-unquote, ‘supporting terrorism’ in that instance?”
The bill passed the House Thursday after a majority vote, and is now in the Senate.
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