Israeli-American Civic Action Network’s Post

This Thursday, H.R. 9495, colloquially known as the Kill Nonprofits Bill, is up for another vote. (Unlike the defeat last week when Republicans failed to get a 2/3 majority during a “fast track” process, this time, it only needs a simple majority to pass.) This bill, if passed, gives authority to the Secretary of Treasury to designate any nonprofit organization a “terrorist-supporting organization”—based on vague language and supposition—and strip them of their tax-exempt status. It’s governmental overreach at its very worst. Nonprofits are, at times, our society’s first line of defense against policies that harm the most vulnerable among us. This is by design when, very intentionally, the Reagan Administration began cutting federal social services—both in practice and in funding—and nonprofits picked up the slack…because people still need services with or without funding and support. If you follow me here, you know that I can rant about the sector like no other, and…this is a bad law. It does nothing to help and everything to harm. And 52 Democrats voted for it. If you are a nonprofit volunteer, board member, staff member, or donor, now is your time to shine. Here is a list of actions to take *before Thursday* compiled by Fund the People: https://lnkd.in/gebPKbXR. Nonprofit friends, activate your networks hard.

You’d be forgiven for ignoring tax breaks contained in the Inflation Reduction Act. After all, they won’t help tax-exempt organizations. Or will they? We suggest you look at two provisions benefitting nonprofits. https://hubs.li/Q02qyKTC0

** #Nonprofit friends ** If you are not following the Bill H.R. 9495, let me get you up to speed. [Note: this is going up for vote again tomorrow (11/18) so this is timely.] 🟧 This bill (Bill H.R. 9495) will serve to silence the community organizations advocating for vulnerable populations. How? It gives Secretary of Treasury the full power to shut down any  “terrorist-supporting organization” and can do so without evidence. Note that it is ALREADY illegal to provide material support to foreign terrorist organizations - this allows the Secretary of Treasury to revoke 501c3 status with burden of material support on the accused. This could include any & all nonprofits, ranging from news outlets, environmental groups, pro-democracy to immigrant-focused missions. Many Dems have voted FOR this in the last round, including Congressman Henry Cuellar (TX-28). ⏺️ Read the joint opposition statement submitted on 11/15 from Council on Foundations, Independent Sector, National Council of Nonprofits, and United Philanthropy Forum: https://lnkd.in/gd6eGSt3 ⏺️ Use your voice and contact your rep ASAP! You can identify your Representative here: https://lnkd.in/eqTaGd7j ⏺️ Not sure what to say? Use this simple script: “Hello Representative ____. I am calling to express my concern about bill HR 9495 that is going up for a vote later today (11/18). Nonprofit workers are essential to our economy and I urge you to vote "NO" as this bill provides immeasurable power to one office at puts nonprofits at the risk of being targeted for the services and advocacy work they provide. Thank you.” Y'all, I know we're tired but this is a very important action .. and it's worth the outreach!

To understand the need for nonprofits to avoid excess benefit transactions, it helps to also comprehend the concept of private inurement. This refers to payments to “insiders” that are beyond reasonable compensation for goods or services provided. If any net earnings inure to the private benefit of an individual, the IRS won’t view your nonprofit as operating primarily to further its tax-exempt purpose. The prohibition against such benefits doesn’t prevent all payments, such as reasonable salaries. But you must be able to prove transactions were made with your tax-exempt purpose in mind. Learn more here: https://bit.ly/3kyyaK7

You’d be forgiven for ignoring tax breaks contained in the Inflation Reduction Act. After all, they won’t help tax-exempt organizations. Or will they? We suggest you look at two provisions benefitting nonprofits. https://hubs.ly/Q02q8wGt0

You’d be forgiven for ignoring tax breaks contained in the Inflation Reduction Act. After all, they won’t help tax-exempt organizations. Or will they? We suggest you look at two provisions benefitting nonprofits. https://hubs.ly/Q02q8wGt0

Looking to save money on taxes while supporting a good cause? Maximize your impact today with a Donor Advised Fund. It’s a flexible way to support the causes you care about while getting tax benefits. Creating a DAF is easy, inexpensive, and makes a major impact to nonprofits like TMF. Learn more. >> https://loom.ly/3q7Qnl0

Nonprofit Professionals....this came across my feed and it seems really important that we are aware and taking action. Congressional Summary of the Bill: “This bill postpones certain tax filing deadlines for U.S. nationals and their spouses who are unlawfully or wrongfully detained abroad or held hostage abroad. It also allows for a refund and abatement of tax penalties and fines paid by detained individuals. The bill terminates the tax-exempt status of terrorist supporting organizations.” And how do they define a terrorist supporting organization? According to the bill: “‘terrorist supporting organization’ means any organization which is designated by the [Treasury] Secretary as having provided… material support or resources to a [terrorist] organization…”

🚨 URGENT: Protect Our Nonprofits 🚨 H.R. 9495 is being voted on Monday, 11/18 and threatens nonprofits by allowing their status to be revoked without evidence if they are "terrorist supporting". While in theory this is a good thing, not requiring evidence is incredibly dangerous and creates a huge opening for our nonprofits to be targeted unduly. TAKE ACTION: 1. Call your representative TODAY (find yours: house.gov/representatives) You can find how they voted on this bill last week here: https://lnkd.in/gTB6FDzU 2. Tell them to vote NO on H.R. 9495 3. Share this post This affects ALL nonprofits and the communities they serve. Every call matters!

H.R. 9495, titled the "Stop Terror-Financing and Tax Penalties on American Hostages Act," is a bill introduced in the 118th Congress (2023-2024). The legislation has two primary objectives: Tax Relief for Hostages and Wrongfully Detained Individuals: The bill proposes postponing certain tax filing deadlines and providing refunds or abatements of tax penalties for U.S. nationals and their spouses who are unlawfully or wrongfully detained abroad or held hostage. Termination of Tax-Exempt Status for Terrorist-Supporting Organizations: It grants the Secretary of the Treasury the authority to revoke the tax-exempt status of nonprofit organizations deemed to have provided material support to designated terrorist groups. Potential Implications for Nonprofit Organizations: The second provision has raised significant concerns among civil liberties groups and nonprofit organizations: Broad Discretionary Power: The bill provides the Treasury Secretary with broad authority to unilaterally revoke a nonprofit's tax-exempt status based on allegations of supporting terrorism. Critics argue that this could be used to target (LGBTQIA+, BIPOC, Support for people experiencing homelessness, and other) organizations without sufficient evidence or due process. Lack of Due Process: Opponents highlight that the bill lacks clear procedures for organizations to challenge or appeal such designations, potentially leading to unjust penalties and suppression of legitimate activities. Chilling Effect on Free Speech: There is concern that the legislation could be weaponized to silence dissent and stifle free speech by threatening nonprofits that engage in advocacy or criticism of government policies. In summary, while H.R. 9495 aims to address issues related to terrorism financing and provide tax relief to hostages, its provisions concerning the revocation of tax-exempt status have been criticized for potentially undermining the operational freedom and rights of nonprofit organizations. https://lnkd.in/eQsbRxZ4