New US legislation aims to eliminate tax-deductible gifts to terror-tied groups
Sen. Tom Cotton (R-Ark.) is introducing a bill to require so-called “passthrough charities” to report on the destinations of donations they receive and forward to other entities, and to subject the charities to a heavy…
Assessment
The bill targets a specific mechanism by which donations can flow to terror-linked groups without public scrutiny. At stake is whether the U.S. tax code will continue to enable indirect funding of organizations that may be designated as terrorist. Watch for how passthrough charities and their donors respond to the proposed disclosure and penalty requirements.