Nonprofit Law Prof Blog

U.S. Muslim Groups Seek Easier Charitable Contribution Rules

A coalition of U.S. Muslim groups have asked President Obama to revise charitable giving rules that have generated a chilling affect amongst the Muslim community with regard to charitable giving, according to an online report by The Public Record: 

.While President Barack Obama conceded in his speech in Cairo last month that U.S. rules on charitable giving “have made it harder for Muslims to fulfill their religious obligation,” civil rights advocates are pressing the president to turn his words into action.  The Muslim Public Affairs Council has joined other nonprofit organizations in urging Obama to follow up on his commitment to work with Muslim Americans to revise charitable giving rules. In a letter to the president, the organizations said, “We are seeking a meeting with you and the appropriate representatives of your administration to provide background information on how current national security rules create problems for all U.S. charities and to provide recommendations for change.”  

The Letter, a copy of which I have not yet obtained, refers to conclusions made in a troubling 166 page ACLU report entitled, "Blocking Faith, Freezing Charity:  Chilling Muslim Charitable Giving in the War on Terrorism Financing".  (June 2009).  We previously reported on this matter here.  The President acknowledged in his June 4, 2009 Cairo speech that efforts to cut off funds to terrorist organizations have had the unintended collateral effect of making it harder and indeed dangerous to give to an Islamic charity or any group that seeks humanitarian goals for people of the Islamic faith.  Video of the speech is available here.  Obama stated the following with regard to charitable giving by Muslims:

Freedom of religion is central to the ability of peoples to live together.  We must always examine the ways in which we protect it.  For instance, in the United States, rules on charitable giving have made it harder for Muslims to fulfill their religious obligation.  That's why I'm committed to working with American Muslims to ensure that they can fulfill zakat. 

dkj. 

Australian Plan to Boost Funding to Homeless Mired in the Bureaucracy

The Australian reports today that the government's plan to increase by $800 million funding for the nearly 105,000 homeless Australians has stalled.  Last year, the paper reports that the prime minister (Kevin Rudd) declared that homelessness was a "national obscenity", saying "[w]e can do better; we must do better."  See the story excerpt below:

About 105,000 Australians are homeless on any given night, with data expected out this week likely to show another rise in their numbers.

A landmark Council of Australian Governments meeting last November agreed to boost services for the homeless under a four-year deal that requires the states and territories to collectively match a $400m commonwealth contribution.

"The implementation plan for each state and territory to achieve the objectives of this agreement is to be agreed by no later than 31 March, 2009," the pact states.

The government's white paper on homelessness, released in December, pledged the plans "will be in place in the first half of 2009".

It also promised a new council on homelessness, to report to Mr Rudd on progress towards the targets captured in the partnership deal.

More than six months later, no appointments have been made to the council.

For the full story, please click here.  In the wake of so many charities worldwide decrying the lack of sufficient financial support in these tough economic times, it is refreshing to know that some charities that are meeting critical needs will be helped, even if it is eventually. 

AMT 

July 2009 Issue of International Journal of Civil Society Law Newsletter

The International Center for Civil Society Law has just published its July 2009 Newsletter.  It is available on-line at http://www.iccsl.org/pubs/09-07_IJCSL-N.pdf  Here is a listing of the topics addressed in the newsletter:

 

ANTI-TERRORISM LEGISLATION

U.S.—ACLU REPORT DETAILS UNDERMINING OF MUSLIM CHARITIES SINCE SEPTEMBER 11 ATTACKS

CITIZEN PARTICIPATION AND FREEDOM OF INFORMATION

CANADA--DEMOCRATIC RACE GOOD FOR VANCOUVER AND MONTREAL

BERMUDA—GOVERNMENT OFFICIALS REVIEW CAYMAN ISLANDS’ FREEDOM OF INFORMATION LEGISLATION

CAYMAN ISLANDS-- INFORMATION COMMISSIONER WARNS OF DELAYS

ENGLAND—CREWE CITIZENS GET TO VOTE ON NEIGHBORHOOD PLANS

EUROPE—TREATY ON ACCESS TO OFFICIAL DOCUMENTS SIGNED

UNITED STATES—

• STATE DEPARTMENT TRIES INTERNET DIPLOMACY

• LIEBERMAN, GRAHAM THREATEN SCORCHED EARTH ON TORTURE PICS

FISCAL MATTERS

ENGLAND AND WALES—

• CIF REGULATION BY FSA ‘MAY LEAD TO FEE HIKE’

• WIKIMEDIA UK HAS BEEN DENIED CHARITY S

FREEDOM OF ASSOCIATION AND PEACEFUL ASSEMBLY

INDIA—MADRAS HIGH COURT RULES IN FAVOR OF EMPLOYEES IN LABOR DISPUTES WITH NGOS

SOMALILAND—GOVERNMENT SUSPENDS SOME NGOS

FREEDOM OF EXPRESSION

CHINA—

• GREEN DAM PORNO PROJECT EVOKES FEARS OF INTERNET CENSORSHIP; JULY 1 DEADLINE DROPPED ON JUNE 30

• GOVERNMENT TIGHTENED INTERNET ACCESS AROUND TIANANMEN ANNIVERSARY

• INTELLECTUALS CALL FOR RELEASE OF DISSIDENT

ENGLAND--HOME SECRETARY JACQUI SMITH TO FIGHT SHOCK-JOCK MICHAEL SAVAGE’S LAWSUIT

INDONESIA—RADIO NEWS AGENCY BECOMES VOICE FOR TOLERANCE

KAZAKHSTAN—GOVERNMENT TO TIGHTEN INTERNET LAW

SRI LANKA--GOVERNMENT ARRESTS FAMED ASTROLOGER OVER PREDICTIONS OF PRESIDENT’S FAILURE

UGANDA—CONSTITUTIONAL COURT UPHOLDS CRIMINAL LIBEL CASE

UNITED STATES—

• LOCAL GROUPS TO HOST BRITISH MP WHO JUSTIFIES TERROR

• TALK SHOW HOSTS MAY BE ACCOMPLICES UNDER HATE BILL

FREEDOM OF RELIGION AND BELIEF

AZERBAIJAN—RELIGION LAW CHANGES TARGET MUSLIMS

FRANCE—SARKOZY ANNOUNCES AIM TO OUTLAW BURQA

IRAN—BAHAIS ONCE AGAIN SUFFERING DISCRIMINATION AND HARASSMENT

IRAQ—ANCIENT RELIGION IN DANGER

MALDIVES—RELIGIOUS FREEDOM FOUND LACKING FOR MIGRANT WORKERS

TONGA--CHINESE REGIME PRESSURES TONGAN OFFICIALS TO CURB FREEDOM

LEGAL FRAMEWORK

CANADA—NEW NOT-FOR-PROFIT CORPORATIONS ACT P

NORTHERN IRELAND-- CHARITY COMMISSION GETS DOWN TO WORK

RUSSIA—DUMA PASSES LESS RESTRICTIVE NGO LAW

UNITED STATES—TEXAS ADOPTS LAW TO PROTECT DONOR INTENT WITH REGARD TO ORPHAN TRUSTS

ZIMBABWE—CIVIL SOCIETY ORGANIZATIONS REJECT PROPOSAL TO MAKE TRUSTS REGISTER UNDER PVO ACT

MISCELLANEOUS MATTERS

CANADA—NEW GUIDANCE ON FUNDRAISING ISSUED BY CRA

RESOURCES

LAO PDR—DECREE LAW NOW AVAILABLE ON ICCSL WEBSITE

DAB

 

Kenneth Anderson Posts Paper on NGO Accountability

Kenneth Anderson has recently posted his book review, What NGO Accountability Means -- And Does Not Mean, 103 American Journal of International Law 170 (2009).  Here is the abstract:

International and transnational NGOs have been under criticism for alleged lack of accountability since they emerged into prominence in the 1990s. In recent years, the debate over NGOs has shifted from legitimacy and "representativeness" to accountability in the narrower senses of internal governance, fiduciary responsibility, relationships with national governmental authorities, and similar issues. The volume under review seeks to cover both aspects of the debate, with emphasis on the latter, narrower issues. The review essay argues that the debate over representativeness and legitimacy - accountability in the large sense - cannot be left aside, but continues to be present, if only because the incentives that led NGOs to claim to represent the 'peoples of the world' in the first place have not gone away but have instead merely been submerged under critical pressure. The review essay argues that the question of NGO accountability as a matter of claims to governance remain salient, because global civil society still seeks a role in global governance in a way that relies upon claims of representativeness and that is not satisfied by narrower mechanisms by which NGOs make themselves accountable for other, narrower purposes, such as internal corporate governance or fiduciary accountability for charitable assets.

dkj

 

Should Wikipedia Not be Tax Exempt? Its British Cousin is Not!

Wikipedia describes itself as a "free encyclopedia that anyone can edit."  It has an .org suffix, presumably confirming its tax exempt status (or at least strongly suggesting it, but I presume it is tax exempt without checking, besides its free and I don't see any advertisement on its site).  No doubt it is "educational" in the Big Mama Rag sense of the word and therefore deserving of tax exemption under IRC 501(c)(3).  But our UK cousins have apparently determined that the UK arm, known as Wikimedia UK is not "educational" because the mere dissemination of ideas "is not in itself a charitable object unless it is combined with teaching or education."  Balderdash, I say!  By the way, this astonishing tidbit was reported to us by the very informative International Journal of Civil Society Newsletter (June 2009)..   According to the online Charity Finance"  (quoting the HMRC)::

In its guidance The Advancement of Education for the Public Benefit, the Charity Commission says organisations must provide evidence of educational benefit and states: “A modern example might be a ‘wiki’ site which might contain information about historical events but, if this information is not verified in any way, it would not be accepted as having education merit or value without positive evidence.”

To see a full copy of the UK determination letter denying tax exemption, go here.  The key language is this:

The production of an encyclopaedia is not the charitable advancement of of education and has not been accepted as such in law. In Re Shaw [1957] 1 WLR 729 Mr Justice Harman said "If the object be the mere increase of knowledge it is not in itself a charitable object unless it is combined with teaching or education". Nor is the support the Wikipedia, the stated primary purpose of Wiki UK Ltd, a charitable purpose.
.

Here is what the Wikimedia UK Secretary told its Board:

Their objection goes to the heart of what we have been established to do. On the surface, it does not appear that any different wording in our constitution or correspondence would have given us a different outcome. Nonetheless, the legal issues may be arguable - our job is not just to produce content in isolation, but also to spread that knowledge and make it accessible to all. I should imagine this will come down to the finer points of law, and it is probably best to engage a lawyer at this stage when we appeal. If we had applied to the Charity Commission before HMRC the application would have been considered by different lawyers but the same law would apply. Therefore, it is likely that we would have come up against the same problem. I'm contacting the Foundation to ask them if they are aware of any lawyers familiar with UK law who could help us pro-bono on this. I'm also sending a note to our MP to thank him for his help in speeding this up: although it is disappointed to get this response, it is better to get it now that in 3 or 6 months' time. In the meantime, we should probably stop referring to ourselves as a "charity" or an "exempt charity". Before receiving this letter it was reasonable for us to do this as that was our honest view. Now we know there is some disagreement over this, I suggest we should describe ourselves as a "not-for-profit" instead. Whilst we can still get Gift Aid declarations (HMRC have previously confirmed this was ok) we should probably add a caveat on the form explaining that our charitable status is contested.

Me thinks our brethren have this completely wrong.  The dessimination of uncensored, raw and un-commented upon information (nevermind that the dessiminator cannot possibly dessiminate without at least implicit comment, even the organization of information is a subjective comment) is, if that is even possible, as valuable or more as censored, edited, and commented upon information.  Stupid is as stupid does.

dkj

Sarkozy Would Outlaw the Burqa

Earlier this week, the New York Times reported that in an address to the French parliament on Monday, French President, Nicolas Sarkozy, gave a withering critique of burqas as an unacceptable symbol of "enslavement."  According to Mr. Sarkozy, there is no room in the French republic for burqas, garments some Muslim women wear to cover their bodies and faces.  

Said Mr. Sarkozy:

The issue of the burqa is not a religious issue. It is a question of freedom and of women’s dignity,  The burqa is not a religious sign. It is a sign of the subjugation, of the submission, of women.

To enthusiastic applause, Mr. Sarkozy stated: “I want to say solemnly that it will not be welcome on our territory.”

I note that France has the largest Muslim population in Western Europe.  Current estimates are that there are approximately five million Muslims living in France.  Yet, traditional Islamic garments have been a divisive issue in that country for several years.  In 2004, for example, France passed legislation prohibiting the wearing of head scarves and conspicuous religious symbols at public schools.  

Meanwhile, Mr. Sarkozy appears to have spoken from both sides of his mouth.  On the one hand, he stated that in France, "the Muslim religion must be respected like other religions."  Yet, he also stated that "the burqa is not welcome in France.  We cannot accept in our country women imprisoned behind bars, cut off from social life, deprived of identity.”

He also gave his support to a cross-party initiative by about 60 legislators who proposed that a parliamentary commission study the burqa and methods to combat its spread.

It would seem that Mr. Sarkozy is likening the wearing of the burqa to "women being imprisoned behind bars, cut off from social life, [and] deprived of identity."  Yet, in my work as a member of the Board of Experts of the International Religious Liberty Association, I have come across many Islamic women in many countries who willingly and gladly wear their burqas.  Sure, the burqa is something some western minds do not understand; but why should the government of France -- or any government, for that matter -- outlaw its use?  What next will President Sarkozy do -- call for Roman Catholic nuns to stop wearing their habits or for ministers of religion like myself to stop wearing our clerical collars or clerical robes in public?    

VEJ

  

Russian present introduces bill to lower hurdles for nonprofit organizations

The New York Times reports that "President Dmitri A. Medvedev introduced legislation on Wednesday to ease some of the regulatory burdens on nonprofit groups. The current law was approved under Mr. Medvedev’s predecessor, Vladimir V. Putin, who asserted that hat foreign governments were using the groups to meddle in Russia’s affairs." No details yet on the bill's contents. For discussion of the Russia's current regulation of nonprofits, link here and here

rak

International Society for Third Sector Research Issues Call for Papers

The International Society for Third Sector Research (ISTR) has issued a call for contributions.  Here is the text of the CFC.

Call for Contributions

ISTR 9th International Conference

"Facing Crises:Challenges and Opportunities Confronting the Third Sector and Civil Society"

The International Society for Third-Sector Research (ISTR) is pleased to announce that the Call for Contributions for the 9th International Conference is published on our website (www.istr.org/conferences/istanbul/). The conference will be held at Kadir Has University in Istanbul, Turkey, on July 7-10, 2010.

The Call is currently available in English and Spanish; Arabic, Chinese, German and French languages will be added in the very near future.

The deadline for submissions is October 19, 2009.

For more information, see the ISTRwebsite at: www.istr.org/conferences/istanbul/

DAB

Religious Group in Japan Fined ¥300 Million For Treating Taxable Income as Offerings

The Japan Times reports that the Kantoshinetsu Regional Tax Bureau in Japan has fined the Cosmic Truth Society ¥300 million (US$3 million) for wrongly treating ¥1.4 billion in taxable revenues as tax-exempt offerings.  The article states that while the group reported about 60 percent of the revenues from its 23 love hotels in Japan, it failed to declare the remaining 40 percent of revenues over the seven-year period through February 2008.  The group has objected to the decision.

LHM

Zakreski on "Reform of the Law Relating to Unincorporated Nonprofit Associations"

Kevin Zakreski (member of the National Conference of Commissioners on Uniform State Laws unincorporated nonprofit committee) has posted Reform of the Law Relating to Unincorporated Nonprofit Associations, 41 University of British Columbia Law Review 115 (a peer-reviewed journal) on SSRN.  For U.S. readers, the last sentence of the abstract may be of most interest (emphasis added):

There are three primary modes of collective nonprofit activity: the nonprofit corporation; the charitable trust; and the unincorporated nonprofit association. The residual or default mode is the unincorporated nonprofit association. Whenever people band together and agree to pursue common nonprofit purposes and they do not take the steps required to incorporate or to create a charitable trust, they form an unincorporated nonprofit association. Unlike the coherent bodies of law that govern nonprofit corporations and charitable trusts, the law applicable to unincorporated nonprofit associations in common-law Canada is a hodgepodge of rules that are not well known and not well adapted to contemporary social needs. It is a body of law that is ripe for reform.

This comment reviews both the law of unincorporated nonprofit associations and the recent efforts to reform this area of the law. It begins by setting out some background information on the types of unincorporated nonprofit associations, the number active in Canada, and their typical activities. Then, it briefly explores the development of the law applicable to unincorporated nonprofit associations in the nineteenth century and examines how this body of law has led to a number of problems in connection with selected legal issues. The comment concludes by noting several law reform projects in Canada and elsewhere, with a special emphasis on the ongoing project to create a harmonized legal framework for unincorporated nonprofit associations in North America, which is being carried out jointly by the Uniform Law Conference of Canada, the National Conference of Commissioners on Uniform State Laws, and the Mexican Conference of Commissioners on Uniform State Laws.

LHM