Q. So, you’re big brother, eh? Come to force me to adhere to a noxious US federal requirement?
A. The USA PATRIOT Act is a controversial federal mandate, and many charitable organizations are grappling with how to respond to it. But the fact is that the US government can freeze the funds of a lot of organizations doing good and vital work based on a set of criteria that is not thoroughly defined in the USA PATRIOT Act or demonstrated in the judicial system. Understanding the Act, implementing data management and reporting procedures, and knowing who is on the watch lists can help affected organizations understand the implications and risks of their giving so that they are prepared.
Q. But Mott is making us do this. We don’t really have a choice.
A. Imagine, for just a second, that Mott’s assets are frozen. How many organizations would that affect? Imagine the assets were frozen for a year. How many organizations would go under? How many of the organizations’ clients wouldn’t get services? Mott wants to protect themselves as well as the organizations they serve, and this is the strategy that they have chosen.
Q. Why is Mott making its grantees perform tasks that aren’t even mandated in the USA PATRIOT Act?
A. The USA PATRIOT Act and Executive Order 13224 specifies that the assets of an organization can be frozen if that organization is found to be providing financial support, in-kind support, or material assistance to organizations or individuals deemed to be associated with terrorism. In order to ensure continued funding for nonprofits, Mott is requiring its grantees to do some specific data management.
Q. How can you—NPower and CompuMentor—support this activity which is so controversial in terms of privacy?
A. CompuMentor and NPower are committed to ensuring that nonprofits have the capacity that they need to do their jobs effectively and efficiently. In this case, their job includes some requirements that we may or may not agree with. Our job is to make sure that your organization has the tools and knowledge it needs to meet these requirements. What you do with those tools and knowledge is up to your organization.
Q. Why doesn’t Mott just refuse the government/Combined Federal Charities funding, like the ACLU and others?
A. The ACLU and other organizations have removed themselves from the Combined Federal Charities program so as not to be required by the Office of Personnel Management to comply with a list-checking requirement. For the Mott Foundation, it’s not as simple as just choosing not to participate in the CRC. Mott’s legal counsel has advised them that due to their funding focus and geography, they are at significant enough risk that they should implement a regular list-checking policy for both their grants and for the organizations that redistribute Mott funds.