This week the Treasury Department will likely release its revised anti-terrorism financing guidelines with broad implications for the nonprofit sector. The revision will likely emphasize that the guidelines are voluntary. It will also urge nonprofits to check the terrorist watch lists when doing business with any group or individual. The Treasury Department's Anti-Terrorism Financing Guidelines: Voluntary Best Practices for U.S. Based Charities were published in 2002 as one measure to implement President Bush's Executive Order 13224, signed shortly after the Sept. 11 terrorist attacks in order to cut funding to terrorist networks. According to the Treasury Department, the guidelines "are intended to assist charities in developing a risk-based approach to guard against the threat of terrorist abuse." The guidelines, however, have been mired in controversy since their inception. For example, despite the Treasury Department's insistence that the initial guidelines were voluntary, many foundations have begun checking against terrorist watch lists the names of potential grantees, including grant seeker's key staff and board members. Some nonprofits have instituted similar list-checking policies when re-granting funds, and several workplace giving programs, such as the United Way, have also taken up the practice when selecting participating organizations. Even the Combined Federal Campaign (CFC), the government's charitable workplace giving program, instituted list-checking requirements in its 2004 and 2005 applications. On Nov. 7, following a legal challenge brought by several nonprofit groups including the American Civil Liberties Union (ACLU) and OMB Watch, however, the CFC issued new regulations for 2006 which move away from mandating list checking requirements. The new CFC rules do, however, encourage nonprofits to follow the Treasury guidelines and to check terrorist watch lists. The emphasis on following the Treasury guidelines is somewhat surprising since they have from the start been intended to be voluntary. Moreover, the guidelines are far more limited in scope than the nonprofit sector's implementation of them has been. For example, the guidelines only suggest list checking and other checks of "questionable activity" for "potential foreign recipient organizations," not for all organizations. On the other hand, the guidelines offer broad advice on a range of other topics only indirectly related to anti-terrorism. For example, the guidelines urge nonprofit boards to meet at least three times a year with the majority of members attending in person and to collect from board members home address, Social Security number, citizenship and other information. It is unclear the extent to which nonprofits have incorporated such advice. A Treasury Department official said the new guidelines would be made public prior to the Thanksgiving holiday and that there would be a comment period allowed, even though the new guidelines would be operational the day they are published. According to a Treasury spokesperson, the revised guidelines' first section will emphasize the voluntary nature of the best practices and demonstrate a "recognition of flexibility" in embracing the suggestions that the original guidelines did not show. Another new section will provide fundamental principles similar to the Principles of International Charity, developed by a working group of nonprofits and foundations. The spokesperson also indicated the new guidelines would substantively change other recommendations. Instead of suggesting checking a number of different watch lists, the revised guidelines will refer only to the Treasury Department's Office of Foreign Assets Control Specially Designated Nationals List.