CAIR’s Concerns Over New Terror-Charity Bill Highlight Its Need for Passage

A new bill aimed at cutting funding to nonprofits that support terrorism has hit a snag in Congress, amidst false claims from the very organizations it targets.

The Stop Terror-Financing and Tax Penalties on American Hostages Act, HR 9495, managed to pass in the House last month.

Opponents have dubbed the legislation a “nonprofit killer,” misleading both the public and lawmakers about its details in a bid to thwart its progress.

One of the most vocal adversaries is the Council on American-Islamic Relations, which has derided the bill as “nefarious” and cautioned that it will severely damage charitable organizations. CAIR alleges that the legislation denies nonprofits due process.

In truth, the legislation includes due process protections such as written notifications, specified response times, and judicial reviews meant to prevent unfair or arbitrary actions against innocent organizations.

HR 9495 would empower the Treasury Secretary to designate organizations as “terrorist-supporting” if they knowingly offer material support to foreign terrorist groups, effectively revoking their tax-exempt status.

Before any such designation is made, the organization in question must receive written notice detailing the allegations, allowing 90 days for a response, rectification of issues, or contestation of the claims.

If these conditions are not met, only then does the designation take effect. The bill also outlines pathways for judicial appeals and administrative reviews.

This legislation does not indiscriminately target charities; instead, it aims to uphold the integrity of a sector crucial to American civil society. Tax-exempt status is a privilege given to organizations that benefit the public good.

By closing loopholes and ensuring accountability for wrongdoers, HR 9495 protects this privilege, allowing legitimate charities to continue their vital missions without fear of reputational damage.

Moreover, the legislation includes humanitarian provisions designed to assist U.S. citizens unjustly detained overseas by delaying tax deadlines and reimbursing IRS penalties — an outrageous situation faced by Wall Street Journal reporter Evan Gershkovich and other former hostages when they returned home this year. Read more here.

These measures exemplify the dual objectives of HR 9495: to protect national security while promoting transparency in the nonprofit sector.

However, CAIR’s vigorous objections and intense rhetoric cast doubt on its intentions, particularly given its history of supporting Hamas, designated as a foreign terrorist organization by the U.S.

As far back as 2008, during the federal prosecution of the Holy Land Foundation, CAIR was named as an unindicted co-conspirator due to suspected links with Hamas.

Those concerns resurfaced after October 7, 2023, when CAIR leaders issued multiple statements commending Hamas for its violent attacks on Israel.

By characterizing these atrocities as “resistance” or “decolonization” and openly celebrating Hamas militants, CAIR has aligned itself with extremist narratives.

Nonetheless, Hamas-supporting rhetoric — repeatedly and unapologetically articulated by CAIR leaders — is not sufficient to prove “material support” for terrorism.

This begs the question: what exactly is CAIR attempting to conceal that fuels its fervent opposition to HR 9495?

An answer may lie in the ongoing case of Lori Saroya, a former CAIR employee whose accusations against the organization shed light on why it might be apprehensive about this legislation.

Saroya and CAIR have been embroiled in legal battles after she alleged that the group received funding from foreign governments and terrorist organizations.

Her claims, along with subsequent developments in the legal proceedings, reveal CAIR’s reluctance to disclose information about its donors, particularly relating to foreign funding sources.

This situation alone could place CAIR in the sights of HR 9495, which aims to enhance transparency and accountability in nonprofit funding and to address potential foreign influence.

In 2021, CAIR filed a lawsuit against Saroya but later withdrew it — casting doubt on whether it has something to hide.

Saroya responded with a defamation counter-suit against CAIR, which is still ongoing. The discovery process in her case could validate her allegations, while HR 9495 may enforce added transparency requirements.

As the Senate deliberates on HR 9495, the stakes are unmistakable: lawmakers, especially Democrats, face a choice to either yield to disinformation and fear-mongering from organizations like CAIR or to advocate for transparency, security, and fairness.

With its bipartisan support and robust due-process protections, this legislation is a measured and essential step towards ensuring the integrity of the nonprofit sector alongside our national security.

The Senate must act decisively to approve HR 9495, safeguarding both America’s tax system and the credibility of its nonprofits.

Susan George is the CEO of the nonprofit Intelligent Advocacy Network, dedicated to fighting misinformation, extreme bias, and hate-motivated incidents through community engagement.