The Responsible Role for International Charitable Grantmaking in the Wake of the September 11, 2001 Terrorist Attacks
Anthony, Christine Holland, Vanderbilt Journal of Transnational Law
This Note argues that a collaborative information collection and sharing effort would protect charities from becoming law enforcement agencies and would ensure that U.S. altruism is properly monitored and reaching the areas of the world most in need. A robust system of international charitable giving is a vital element in the promotion of "civil society" and the fight against terrorist attitudes and sympathies. The U.S. government and non-profit sector must combine resources and efforts to continue to promote global charitable participation with an updated approach to grant-making and fund oversight.
TABLE OF CONTENTS I. GENERAL HISTORY OF DOMESTIC CHARITABLE GIVING AND THE POLICIES UNDERLYING THE DEVELOPMENT OF TAX EXEMPTIONS AND DEDUCTIONS A. Tax Relief Given to Those Organizations Whose Activities Reduce the Burden on Government by Addressing Poverty, Health, Education, and Science B. Development and Expansion of This Historical Policy to Modern Day C. Current Tax Laws Applicable to Charitable Organizations D. Rise of Global Economic Markets and Consequently, the Growing Interest and Need of Global Altruism III. TAX LAWS OF THE UNITED STATES DO NOT PROVIDE A DEDUCTION FOR CHARITABLE CONTRIBUTIONS MADE DIRECTLY TO INTERNATIONAL ORGANIZATIONS AND THE INDIRECT BENEFITS OF THIS POLICY IN THE WAKE OF THE 2001 TERRORIST ATTACKS A. Individual Tax Deductions for International Charitable Efforts Must be in Conjunction with Grantmaking or Operations of Domestic Non-Profit Organizations B. Ironically a Beneficial Policy: This Limits the Scope of Funds Sent Abroad Which Must be Scrutinized and Monitored to Prevent Diversion to Terrorist Organizations IV. RESPONSES TO SEPTEMBER 11, 2001 TERRORIST ATTACKS HAVE HAD SIGNIFICANT EFFECTS ON CHARITIES AND NON-PROFIT ORGANIZATIONS MAKING INTERNATIONAL GRANTS OR WITH ACTIVITIES ABROAD A. Executive Order 13224 B. The Patriot Act C. Treasury Department Guidelines: "Voluntary Best Practices". V. THE NEED FOR GOVERNMENT AND CHARITABLE ORGANIZATIONS TO LAUNCH A COLLABORATIVE EFFORT OF INFORMATION COLLECTION AND SHARING A. Critique U.S. Responses Intended to Prevent Diversion of International Grants to Individual Terrorists and Foreign Terrorist Organizations 1. "One-Size Fits All" Approach Does not Accommodate the Reality of the Extensive Diversity of International Grantmakers in the United States B. The Council on Foundations and American Bar Association's Proposal for a Risk-Based Approach Based on Current Practices and Procedures Larger Grantmaking Foundations Already Observe C. Use the Practices and Procedures Already in Place, but Make the Information Collected Available to All Grantmaking Organizations Through the Use of a Secure Database D. Charities are not Law-Enforcement Aagencies and Should not be Tasked with Investigative Requirements to Make International Grants as Other Checks Monitor Charitable Behavior and such Requirements Diminish Grant Efficacy VI. CONCLUSION
The Preamble to The Principles of International Charity begins:
International charitable work fills critical gaps in the global socioeconomic infrastructure. Governments alone cannot solve every social problem. Businesses alone cannot meet every economic need. Without international charity, more people in the world would die of hunger and disease, fewer children would learn to read and write, and more people would live in poverty. There would be more environmental destruction and fewer scientific advances. …