Economic Justice, Debt Relief, and the G7: A Jewish Perspective on Jubilee USA’s Mission

Across the United States, nonprofit organizations are woven deeply into the fabric of American life. The hospital in which you were born, the college you attended, your local aid agencies, your favorite arts center, the charities you support each year, your synagogue and JCC - all are likely to be non-profit institutions. Nonprofits must abide by rules around what they can and cannot do; in particular, they must be nonpartisan and can't endorse or oppose candidates or parties for office. In exchange for the good works they do across society, non-profits are exempt from federal taxes. Individuals who donate to nonprofits also benefit by receiving a tax deduction because of their generosity.

But now, Congress has put nonprofits at grave risk. Included in a massive tax bill being considered in the House of Representatives is a provision that would allow the U.S. Treasury Secretary to unilaterally strip any nonprofit's tax-exempt status. The provision is proposed under the guise of fighting terrorism, noting that the grounds for a Secretary removing tax-exempt status would be a nonprofit organization's material support for terrorism. But the fact is, the law already makes clear that no nonprofit can support terror. The law also provides a mechanism for holding a nonprofit accountable if such support is suspected and proven, as laid out in Article 18 Section 2339 of the U.S. Code. That mechanism is transparent, deliberative, and ensures decisions are not vested in any one appointed individual - a recipe for potential abuse.

As Jews, we know well the dangers of terrorism. Jews and Jewish institutions have long been prime targets for those seeking to cause harm and sow fear. Serious efforts to fight terror are essential and deserve attention from the highest levels of government. We also know well the dangers of unchecked governmental authority. Throughout the generations, Jewish communities have been subject to the whims of individual authority figures, our rights ebbing and flowing as leaders come and go. Jews - and all people - thrive best when authority exists alongside due process. Unfortunately, the House tax bill's proposal violates that principle.

Rather than enhancing the country's safety, the tax bill's provision threatens to politicize decisions that should be made neutrally and deliberatively. No person, including a Treasury Secretary, should be given nearly unchecked power to remove an organization's tax-exempt status.

We are not alone in our concerns. Scores of Jewish nonprofits nationwide have joined the effort urging House members to reject this terribly misguided proposal. In the secular community, nonprofits are also sounding the alarm, recognizing that this provision poses an existential threat. The nightmare scenario is a Treasury Secretary pursuing their own interests and exploiting their power to remove a nonprofit's tax-exempt status - and the nonprofit left without recourse to forcefully challenge the Secretary's determination.

The House should strike language vesting unilateral authority over non-profits' tax exempt status with the Treasury Secretary or any other individual and let nonprofits continue doing the vital work that enriches the lives of all Americans.