Charities Ask Treasury Secretary Paulson to Meet on Releasing Frozen Funds for Humanitarian Efforts
by Brian Gumm, 12/1/2006
PRESS RELEASE
--For Immediate Release--
Contact:
Kay Guinane, OMB Watch (202) 234-8494, kguinane@ombwatch.org
Ladale George, Muslim Advocates (312) 832-4388, lgeorge@foley.com
Vanessa Dick, Grantmakers Without Borders (202) 988-2683, vanessa@bwob.net
Denise Moorehead, Third Sector New England (617) 523-6565, dmoorehead@tsne.org
Charities Ask Treasury Secretary Paulson to Meet
on Releasing Frozen Funds for Humanitarian Efforts
WASHINGTON, Dec. 1, 2006 — A group of charities today called on Treasury Secretary Henry Paulson to meet to discuss a proposal to release certain funds frozen by the Office of Foreign Assets Control. The funds, donated for charitable purposes, have been seized from organizations Treasury says are associated with terrorism. However, according to the charities, humanitarian groups could use the donations to assist areas of the world affected by natural disasters, hunger and extreme poverty.
The charities raised the proposal in a Nov. 6 letter to Paulson. The charities said that they “take no position on whether these designations were appropriate. Instead, our concern is with ensuring that charitable funds are put to good use."
The charities also said that "[m]ost of these funds come from relatively small donors who intended to provide food, medical care, shelter, education and other basic needs to refugees, people displaced by war or famine and others in need. Many of these donors are Muslims whose giving fulfills a religious obligation." The charities estimated that more than $13.7 million is being held in frozen accounts, and their letter noted that "the need for humanitarian assistance is not frozen and has continued to grow." OMB Watch, one of the organizations that signed the letter, has posted a legal memorandum outlining Treasury's power to arrange the release of these funds.
Kay Guinane, Director of Nonprofit Speech Rights at OMB Watch, said, "I hope Treasury will heed the call from the charitable community and be willing to discuss the need for procedures to ensure charitable dollars are spent for charitable purposes. Some of these funds have been held for over four years. It is time for Treasury to update its policies."
The Council on Foundations, the Center for Global Justice and Reconciliation, Independent Sector, the Global Fund for Women, Grantmakers Without Borders and the Muslim Public Affairs Council were among the other organizations that signed the letter.
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