• Embed Doc
  • Readcast
  • Collections
  • CommentGo Back
Download
POLICY
BRIEF
November 2008
1400 16th Street, NW
Suite 210
Washington, DC 20036
202-667-8227
reform@interaction.org
www.interaction.org
Regulatory Constraints
on NGO S\ue002ace
pROBLEM
Recommendations

It\ue000is\ue000imperative\ue000that\ue000the\ue000following\ue000three\ue000policies\ue000be\ue000eliminated:\ue000
(1)\ue000USAID\u2019s\ue000Partner\ue000Vetting\ue000System\ue000(PVS)\ue000to\ue000vet\ue000NGO\ue000personnel\ue000and\ue000leaders;\ue000(2)\ue000the\ue000
Department\ue000of\ue000Treasury\u2019s\ue000Voluntary\ue000Guidelines\ue000intended\ue000to\ue000prevent\ue000charities\ue000funnel-
ing\ue000money\ue000to\ue000terrorists;\ue000and\ue000(3)\ue000the\ue000anti-prostitution\ue000policy\ue000requirement\ue000for\ue000organiza-
tions\ue000receiving\ue000money\ue000from\ue000the\ue000President\u2019s\ue000Emergency\ue000Plan\ue000for\ue000AIDS\ue000Relief\ue000(PEPFAR)\ue000
through\ue000USAID\ue000and\ue000the\ue000Department\ue000of\ue000Health\ue000and\ue000Human\ue000Services\ue000(HHS).

actions
P\ue000r\ue00a\ue007\ue002r V\ue002\ue00a\ue00a\ue004\ue007\ue003 sy\ue009\ue00a\ue002\ue006:
Suspend\ue000implementation\ue000of\ue000the\ue000rule\ue000that\ue000created\ue000the\ue000PVS\ue000while\ue000using\ue000consultative\ue000
\u2022\ue000
process\ue000between\ue000USAID\ue000and\ue000the\ue000NGO\ue000community\ue000to\ue000design\ue000a\ue000workable\ue000alter-
native system that protects NGOs, the government and the public against the
unintended\ue000diversion\ue000of\ue000U.S.\ue000funds\ue000to\ue000terrorist\ue000organizations\ue000without\ue000putting\ue000U.S.\ue000
NGO\ue000personnel\ue000at\ue000undue\ue000risk;
d\ue002p\ue000r\ue00a\ue006\ue002\ue007\ue00a \ue008f tr\ue002\ue000\ue009\ue00bry V\ue008\ue005\ue00b\ue007\ue00a\ue000ry g\ue00b\ue004\ue001\ue002\ue005\ue004\ue007\ue002\ue009:
The\ue000Department\ue000of\ue000Treasury\ue000should\ue000drop\ue000its\ue000Anti-Terrorism\ue000Financing\ue000Guidelines:\ue000

\u2022\ue000
Voluntary\ue000Best\ue000Practices\ue000for\ue000U.S.\ue000Based\ue000Charities\ue000and\ue000endorse\ue000in\ue000their\ue000stead\ue000the\ue000
Principles\ue000of\ue000International\ue000Charity\ue000developed\ue000by\ue000over\ue00039\ue000American\ue000NGOs,\ue000founda-
tions,\ue000grant\ue000makers,\ue000legal\ue000\ue003rms,\ue000and\ue000public\ue000interest\ue000advocates.\ue000This\ue000will\ue000remove\ue000
NGOs\ue000from\ue000roles\ue000usually\ue000performed\ue000by\ue000security\ue000and\ue000intelligence\ue000personnel;\ue000and

a\ue007\ue00a\ue004-Pr\ue008\ue009\ue00a\ue004\ue00a\ue00b\ue00a\ue004\ue008\ue007 P\ue005\ue002\ue001\ue003\ue002 R\ue002q\ue00b\ue004r\ue002\ue006\ue002\ue007\ue00a:
USAID\ue000and\ue000HHS\ue000should\ue000revise\ue000their\ue000guidelines\ue000as\ue000applied\ue000to\ue000domestic\ue000and\ue000for-

\u2022\ue000
eign\ue000NGOs\ue000to\ue000comply\ue000with\ue000the\ue000August\ue0002008\ue000federal\ue000court\ue000ruling\ue000(which\ue000found\ue000it\ue000
unconstitutional\ue000to\ue000compel\ue000U.S.-based\ue000groups\ue000to\ue000adopt\ue000the\ue000U.S.\ue000Government\u2019s\ue000
requirement),\ue000and\ue000allow\ue000the\ue000most\ue000e\ue001ective\ue000groups\ue000to\ue000partner\ue000with\ue000the\ue000U.S.\ue000in\ue000the\ue000
\ue003ght\ue000against\ue000HIV/AIDS.\ue000

Results

American\ue000NGOs\ue000would\ue000be\ue000able\ue000to\ue000more\ue000e\ue001ectively\ue000implement\ue000U.S.\ue000foreign\ue000assistance\ue000 programs\ue000without\ue000having\ue000to\ue000sacri\ue003ce\ue000constitutional\ue000rights\ue000or\ue000put\ue000their\ue000sta\ue001\ue000in\ue000physi- cal\ue000jeopardy.

Three Executi\ue003e
branch initiati\ue003es
undermine
the ability o\ue001
nongo\ue003ernmental
organizations

(NGOs) to efecti\ue003ely
im\ue002lement U.S.
\ue001oreign assistance

\ue002rograms. Two

intended to hel\ue002
\ue000ght terrorism
\ue002ut the li\ue003es o\ue001
NGO staf at risk
by requiring the
organizations to
\ue002er\ue001orm tasks
associated with

intelligence
ser\ue003ices. The third

needlessly \ue002uts
countless others
at risk by denying
them access to
\ue002rograms that can
hel\ue002 them a\ue003oid
contracting HIv/

AIDS.

THESE\ue000 THREE\ue000 EXECUTIVE\ue000 BRANCH\ue000 INITIATIVES\ue000 UNDER- mine\ue000the\ue000ability\ue000of\ue000relief\ue000and\ue000development\ue000organizations\ue000to\ue000 e\ue001ectively\ue000implement\ue000U.S.\ue000foreign\ue000assistance\ue000programs\ue000by\ue000

restricting access to important groups and discouraging
the\ue000cooperation\ue000of\ue000key\ue000local\ue000partners.\ue000Some\ue000put\ue000U.S.\ue000civil-
ians\ue000 in\ue000 harm\u2019s\ue000 way\ue000 by\ue000 requiring\ue000 them\ue000 to\ue000 undertake\ue000 tasks\ue000
normally the responsibility of security and intelligence ser-
vice\ue000operatives.
partner vetting System

On\ue000July\ue00017,\ue0002007,\ue000USAID\ue000published\ue000a\ue000notice\ue000in\ue000the\ue000Federal\ue000 Register\ue000describing\ue000the\ue000agency\u2019s\ue000intent\ue000to\ue000create\ue000a\ue000new\ue000Part- ner\ue000Vetting\ue000System\ue000(PVS).\ue000The\ue000notice\ue000proposed\ue000vetting\ue000indi- viduals\ue000and\ue000o\ue002cers\ue000from\ue000non-governmental\ue000organizations\ue000 (NGOs)\ue000that\ue000apply\ue000for\ue000USAID\ue000contracts,\ue000grants\ue000and\ue000coopera- tive\ue000 agreements\ue000 to\ue000 ensure\ue000 that\ue000 neither\ue000 USAID\ue000 nor\ue000 USAID- funded\ue000 activities\ue000 were\ue000 inadvertently\ue000 bene\ue003tting\ue000 terrorists.\ue000 The\ue000PVS\ue000will\ue000a\ue001ect\ue000every\ue000nonpro\ue003t\ue000organization\ue000that\ue000applies\ue000 for\ue000USAID\ue000funding,\ue000and\ue000thousands\ue000of\ue000NGO\ue000employees\ue000and\ue000 board\ue000 members\ue000 \u2013\ue000 a\ue000 list\ue000 of\ue000 people\ue000 that\ue000 includes\ue000 religious\ue000 leaders\ue000 and\ue000 members\ue000 of\ue000 Congress\ue000 \u2013\ue000 will\ue000 be\ue000 forced\ue000 to\ue000 turn\ue000 over\ue000private\ue000personal\ue000information.\ue000Furthermore,\ue000in\ue000propos- ing\ue000the\ue000new\ue000PVS,\ue000the\ue000agency\ue000has\ue000ignored\ue000the\ue000fact\ue000that\ue000U.S.\ue000

NGOs already have procedures in place to certify that funds

are\ue000not\ue000diverted\ue000to\ue000terrorists\ue000or\ue000terrorist\ue000organizations.\ue000The\ue000 proposed\ue000 system,\ue000 which\ue000 was\ue000 e\ue001ectively\ue000 put\ue000 forth\ue000 with\ue000 no\ue000 consultation\ue000 with\ue000 the\ue000 NGO\ue000 community,\ue000 dangerously\ue000 blurs\ue000 the\ue000lines\ue000between\ue000USAID\ue000and\ue000the\ue000various\ue000security\ue000agencies\ue000 of\ue000the\ue000U.S.\ue000government.\ue000If\ue000the\ue000employees\ue000of\ue000U.S.\ue000NGOs\ue000work- ing\ue000abroad\ue000are\ue000suspected\ue000of\ue000working\ue000in\ue000concert\ue000with\ue000U.S.\ue000in-

telligence agencies, the threat of terrorist acts against them
can\ue000only\ue000increase.\ue000Nonpro\ue003t\ue000relief\ue000and\ue000development\ue000organi-
zations\ue000are\ue000often\ue000the\ue000only\ue000non-security,\ue000non-military\ue000face\ue000of\ue000
the American people in some of the most dangerous places

in\ue000the\ue000world.\ue000If\ue000NGOs\ue000are\ue000forced\ue000to\ue000restrict\ue000their\ue000operations\ue000 in\ue000these\ue000places\ue000\u2013\ue000which\ue000they\ue000will\ue000if\ue000the\ue000PVS\ue000is\ue000implemented\ue000 \u2013\ue000we\ue000will\ue000be\ue000ceding\ue000the\ue000streets\ue000of\ue000the\ue000world\ue000to\ue000the\ue000kinds\ue000of\ue000 violent\ue000extremists\ue000that\ue000this\ue000policy\ue000aims\ue000to\ue000target.

Treasury De\ue002artment voluntary Guidelines
In\ue000 November\ue000 2002,\ue000 without\ue000 any\ue000 prior\ue000 consultation\ue000 with\ue000
the\ue000 a\ue001ected\ue000 organizations,\ue000 the\ue000 Department\ue000 of\ue000Treasury\ue000 is-
suedAnti-Terrorism Financing Guidelines: Voluntary Best
Practices for U.S. Based Charities.\ue000A\ue000broad\ue000coalition\ue000of\ue000grant-
makers,\ue000 NGOs,\ue000 foundations,\ue000 law\ue000 \ue003rms,\ue000 and\ue000 public\ue000 interest\ue000
groups formed the Treasury Guidelines Working Group of
Charitable\ue000Sector\ue000Organizations\ue000and\ue000Advisors\ue000and\ue000submitted\ue000
common\ue000and\ue000individual\ue000comments\ue000criticizing\ue000the\ue000Guidelines
as unnecessary, impractical, and likely to pose dangers to
American\ue000 citizens\ue000 working\ue000 for\ue000 these\ue000 organizations\ue000 abroad.\ue000
In\ue000 March\ue000 2005\ue000 the\ue000 group\ue000 also\ue000 produced\ue000Principles of Inter-
national Charity\ue000which\ue000it\ue000proposed\ue000that\ue000the\ue000Department\ue000of\ue000
Treasury issue in lieu of itsGuidelines.\ue000 The\ue000 Department\ue000 of\ue000
Treasury\ue000declined\ue000to\ue000do\ue000so,\ue000but\ue000has\ue000twice\ue000revised\ue000the\ue000initial\ue000
Guidelines in response to criticism, most recently in Septem-
ber\ue0002006.\ue000The\ue000Working\ue000Group\ue000and\ue000its\ue000members\ue000remain\ue000con-
cerned that theGuidelines are discouraging charitable giv-

ing\ue000and\ue000are\ue000being\ue000used\ue000inappropriately\ue000by\ue000federal\ue000o\ue002cials.\ue000 In\ue000 December\ue000 2006\ue000 the\ue000 Working\ue000 Group\ue000 wrote\ue000 to\ue000 Secretary\ue000 Paulson\ue000re-iterating\ue000its\ue000request\ue000that\ue000the\ue000Guidelines\ue000be\ue000with- drawn\ue000in\ue000favor\ue000of\ue000its\ue000Principles of International Charity.

Anti-prostitution pledge Requirement

The\ue000Global\ue000AIDS\ue000Act\ue000of\ue0002003\ue000required\ue000that\ue000organizations\ue000 receiving\ue000funds\ue000under\ue000the\ue000Act\ue000have\ue000or\ue000adopt\ue000a\ue000policy\ue000explic- itly\ue000opposing\ue000prostitution.\ue000Until\ue000May\ue0002005\ue000USAID\ue000and\ue000HHS\ue000 did\ue000 not\ue000 enforce\ue000 the\ue000 policy\ue000 requirement\ue000 against\ue000 U.S.-based\ue000 NGOs.\ue000 But\ue000 in\ue000 May\ue000 and\ue000 June\ue000 2005\ue000 the\ue000 two\ue000 agencies\ue000 issued\ue000 directives\ue000 imposing\ue000 the\ue000 policy\ue000 requirement\ue000 on\ue000 their\ue000 U.S.\ue000 NGO\ue000 implementing\ue000 partners\ue000 without\ue000 providing\ue000 any\ue000 guid- ance\ue000 on\ue000 what\ue000 activities\ue000 would\ue000 no\ue000 longer\ue000 be\ue000 permissible.\ue000 Because\ue000prostitutes\ue000can\ue000spread\ue000HIV/AIDS,\ue000many\ue000NGOs\ue000have\ue000

programs to encourage their cooperation in measures to

control\ue000the\ue000disease.\ue000In\ue000January\ue0002006\ue000InterAction\ue000entered\ue000the\ue000 federal\ue000courts\ue000with\ue000an\ue000amicus\ue000brief\ue000supporting\ue000the\ue000position\ue000 that\ue000 the\ue000 directives\ue000 were\ue000 an\ue000 unconstitutional\ue000 abridgement\ue000 of\ue000 the\ue000 free\ue000 speech\ue000 rights\ue000 of\ue000 American\ue000 citizens.\ue000The\ue000 Federal\ue000 District\ue000Court\ue000in\ue000New\ue000York\ue000agreed\ue000but\ue000the\ue000administration\ue000ap- pealed\ue000its\ue000decision\ue000to\ue000the\ue000Second\ue000Circuit\ue000Court.\ue000Before\ue000that\ue000

Court could issue a ruling the administration adopted a tac-
tic\ue000 that\ue000 sent\ue000 the\ue000 case\ue000 back\ue000 to\ue000 the\ue000 District\ue000 Court.\ue000There\ue000 the\ue000
directives\ue000 were\ue000 again\ue000 ruled\ue000 unconstitutional,\ue000 resulting\ue000 in\ue000
another administration appeal to the Second Circuit Court,
where\ue000the\ue000matter\ue000now\ue000rests\ue000(November\ue0002008).\ue000
BackgRound
POLICY
BRIEF
November 2008
1400 16th Street, NW
Suite 210
Washington, DC 20036
202-667-8227
reform@interaction.org
www.interaction.org
InterAction USAID Management Re\ue001orm
Working Grou\ue002
Organization
URL
Academy for Educational Development
www.aed.org
Adventist\ue000Development\ue000and\ue000Relief\ue000Agency\ue000International www.adra.org
Africare
www.africare.org
Air Serv International
www.airserv.org
America\u2019s\ue000Development\ue000Foundation\ue000HQ
www.adfusa.org
American\ue000Friends\ue000Service\ue000Committee\ue000
www.afsc.org
American\ue000Red\ue000Cross
www.redcross.org
American\ue000Refugee\ue000Committee\ue000
www.archq.org
Bread\ue000for\ue000the\ue000World
www.bread.org
CARE
www.care.org
Catholic\ue000Relief\ue000Services
www.crs.org
Centre\ue000for\ue000Development\ue000&\ue000Population\ue000Activities\ue000(CEDPA) www.cedpa.org
CHF\ue000International
www.ch\ue003nternational.org
Christian\ue000Children\u2019s\ue000Fund
www.christianchildrensfund.org
Concern\ue000Worldwide
www.concernusa.org
Congressional Hunger Center
www.hungercenter.org
Counterpart International
www.counterpart.org
Enterprise Development International
www.endpoverty.org
Florida\ue000Association\ue000for\ue000Volunteer\ue000Action\ue000in\ue000the\ue000Caribbean\ue000\ue000\ue000
\ue000\ue000\ue000\ue000\ue000\ue000\ue000and\ue000the\ue000Americas\ue000(FAVACA)
www.favaca.org/
Food\ue000for\ue000the\ue000Hungry
www.fh.org
Global Health Council
www.globalhealth.org
Habitat for Humanity International
www.habitat.org
Heifer International
www.heifer.org
Helen\ue000Keller\ue000International
www.hki.org
INMED\ue000Partnerships\ue000for\ue000Children
www.inmed.org
InsideNGO
www.InsideNGO.org
Institute for Sustainable Communities
www.iscvt.org
Int\u2019l\ue000Crisis\ue000Group\ue000
www.crisisweb.org
International\ue000Medical\ue000Corps
www.imcworldwide.org
International\ue000Relief\ue000&\ue000Development
www.ird.org
International\ue000Rescue\ue000Committee
www.theirc.org
Int\u2019l\ue000Youth\ue000Foundation
www.iyfnet.org
Jesuit\ue000Refugee\ue000Services\ue000USA
www.jrsusa.org
Lutheran\ue000World\ue000Relief
www.lwr.org
Management\ue000Sciences\ue000for\ue000Health
www.msh.org
MAP\ue000International
www.map.org
Mercy\ue000Corps
www.mercycorps.org
National Association of Social Workers
www.naswdc.org
Opportunity International
www.opportunity.org
Oxfam\ue000America
www.oxfamamerica.org
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
You must be to leave a comment.
Submit
Characters: ...