Nonprofit “Terrorist” Bill: An Update

As we shared a few weeks ago, CalNonprofits – along with our advocacy partners across the country – have been closely tracking H.R. 9495. Among other things, the legislation would empower the Secretary of the Treasury (a political appointee) to label any nonprofit a “terrorist-supporting organization” and unilaterally strip it of 501(c)3 nonprofit status without sufficient due process. This would open the door to political retribution against any nonprofit with whom the incoming administration may disagree.

Thanks to the hundreds of nonprofit leaders, volunteers and staff who contacted their representatives, dozens of legislators who previously supported the bill reversed their votes. Unfortunately, it still passed the House of Representatives by a narrow margin.

Due to the significant threat that a bill like this would pose to nonprofits and the communities we serve, there has been rampant speculation about what comes next. After close consultation with our federal advocacy partners, please know this:

H.R. 9495 is not on the verge of being voted on in the Senate or being enacted anytime soon, if at all.

Our partners at the National Council of Nonprofits put it this way: “the action alerts and advocacy from the charitable and philanthropic communities have turned an under-the-radar bill into an extremely controversial and high-profile measure that cannot advance without generating even greater outrage. Thanks to that advocacy to date, the proponents of the legislation have very few – if any – realistic options for securing enactment of the bill either this year or next; significant procedural burdens and the very slim margins in the House and Senate make passage virtually impossible.”

At the very least, what H.R. 9495 does is provide a window into the kinds of attacks on the nonprofit sector that may be forthcoming.

We look forward to engaging with all partners in the new year to continue building the strength of our nonprofit sector while defending it against attacks – political or otherwise. Thank you for your critical work in supporting communities across the state.