In response to the terrorist attacks of September 11, 2001 the U.S. Treasury Department issued its “Anti-Terrorist Financing Guidelines: Voluntary Best Practices For U.S.-Based Charities.” Many in the charitable sector had concerns with the practicality of the guidelines, their effectiveness, and their potential to discourage international charitable activities by U.S. organizations. This dissatisfaction led to the Council on Foundations and over 40 other charities, including Independent Sector, developing the Principles of International Charity (PDF) as an alternative to the Treasury guidelines in 2005.

Treasury Guidelines for International Charitable Activity

On December 18, 2006, the Council on Foundations, on behalf of the Treasury Guidelines Working Group, submitted a response to the U.S. Department of the Treasury's updated Anti-Terrorist Financing Guidelines. Treasury issued a revised version of its Anti-Terrorist Financing Guidelines: Voluntary Best Practices for U.S.-based Charities (PDF) on September 29, 2006. The revised guidelines respond to extensive comments and suggestions provided by a variety of organizations, including comments (PDF) submitted in February 2006 by the Council on Foundations, Independent Sector, and others participating in the Council’s Treasury Guidelines Working Group. The comments identified key concerns with the guidelines and suggested they be withdrawn and replaced with Principles of International Charity developed by members of the Working Group in March 2005. Treasury declined to withdraw the guidelines, but made some amendments in response to comments. Treasury's response (PDF) was released in a second document.

The Working Group's comments focused on three principal concerns: 1) the impression created by the Guidelines that charitable organizations are agents of the government, inadvertently exacerbating the safety risk for charities and humanitarian workers; 2) the additional information on individuals and organizations suggested to be collected in the Guidelines; and, 3) the Guidelines contain broader guidance to charities than may be necessary to comply with anti-terrorist financing obligations.