A contentious provision that would enable the U.S. Treasury Secretary to revoke tax-exempt status from nonprofits deemed to support terrorism has been dropped from the Republicans' tax legislation. Advocacy groups had expressed concern that the vague criteria could be misused politically. Following this win, nonprofit defenders celebrate the impact of their advocacy, emphasizing the collective efforts to prevent arbitrary government action against charitable organizations. This change signals progress but the bill continues to be monitored as it advances in Congress, protecting nonprofits against potential ideological targeting.
Good News Update: Advocacy works! House Republicans have *removed* (for now) a provision from the tax bill that would have granted unprecedented authority to the Executive Branch to revoke nonprofit status from organizations without due process! National Council of Nonprofits and others warned that this provision would have allowed Administrations to weaponize the federal government by targeting charitable organizations based on ideological grounds.
This provision was the latest attempt by the administration to weaponize the federal government against those who it sees as ideological opponents, risking the fundamental protections that nonprofits need.
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