OPM drops terrorist-screening rule for federal charity drive

Nonprofit organizations will no longer be required to check employees against terrorist watch lists before participating in the government's largest charitable fund-raiser, according to a recent Federal Register notice.

The Office of Personnel Management announced last year that in order to take part in the Combined Federal Campaign, nonprofits would have to certify that they do not "knowingly employ individuals or contribute funds to organizations" found on government-managed terrorist watch lists. The CFC allows federal workers to make direct donations through their paychecks to approved charities.

OPM, which administers the program, said nonprofits must check names against the Treasury Department's Office of Foreign Assets Control Specially Designated Nationals List and the Terrorist Exclusion List, which is maintained by the State Department in consultation with the Justice Department.

Thirteen nonprofits filed a lawsuit last year objecting to the new requirement, and some withdrew from the program. They said the rule was illegal and was vague, making compliance difficult. They also argued that OPM failed to follow the proper process for amending program rules, and said the watch lists are riddled with errors and contain common or partial names.

OPM now has reversed its position.

"Under the final rule, effective for 2006 and subsequent campaigns, OPM does not mandate that applicants check the Specially Designated Nationals List or the Terrorist Exclusion List," the Nov. 7 notice states.

All organizations in the program, however, still must certify that they are in compliance with all laws and regulations restricting or prohibiting American citizens from transacting with countries, entities and individuals subject to economic sanctions. About 10,000 organizations participate in the CFC annually.

OPM also asks participants to follow Treasury's "voluntary best practices" for guarding against misuse of funds.

"It is the intention of OPM that applicants enhance their efforts to ensure that funds collected through the CFC not be used to finance unlawful activities or those who engage in them," the notice states.

The nonprofits that filed the lawsuit claimed victory for elimination of the list-checking requirement.

"This is a major victory for nonprofit organizations that refused to be subjected to vague government requirements forcing us to become law enforcement officers for the federal government," said Anthony Romero, executive director of the American Civil Liberties Union, in a statement last week. "We feel vindicated."