Accounting for not-for-profit organizations (NFPs) to prevent terrorist financing

Authors

  • Fuminobu Mizutani Kanto Gakuin University

DOI:

https://doi.org/10.18533/jefs.v5i02.282

Keywords:

Amutot, Foreign state entity, Market mechanism, Pigovian tax, Text mining.

Abstract

This paper adopts a text mining approach to determine the concepts and operating process surrounding ‘Amutot law[1]’, for proposing a regulatory basis to account for financial flows of NFPs in U.S.A. Text mining result reveals that financial flows of charitable organizations can be monitored by making these NFPs to provide accurate information on contributions from foreign state entity and using accountants to monitor the nature of donations received by the organizations. Since Amutot law operates under market mechanisms, U.S government can gain substantial leverage to monitor terrorist financing channeled through various NFPs. This will also help protect the freedom to make contributions of American from diverse religious background.

[1] Amutot is a regulatory document to account the financial flow of NFPs in Israel.  

Author Biography

  • Fuminobu Mizutani, Kanto Gakuin University

    Associate Professor

    Department of Business Administration

References

Association for Civil Rights in Israel, (2013). The Amutot (Non-Profit Organizations) Law. Knesset Articles. http://www.acri.org.il/en/knesset/amutot-law/ (accessed 2017)

Aufhauser D., Gerber S, (Jan. 27, 2017). Stop American Aid to the Palestinians until the Terror Ceases. The Wall Street Journal.

Charity Commission, Office of the Scottish Charity Regulator, (2015). Accounting and Reporting by Charities: Statement of Recommended Practice Applicable to Charities Preparing their Accounts in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland.

Clarke CP, (2015). Terrorism, Inc.: The Financing of Terrorism, Insurgency, and Irregular Warfare. Santa Barbara, CL: ABC-CLIO.

Crimm NJ, (2004). High Alert: The Governments War on the Financing of Terrorism and its Implications for Donors, Domestic Charitable Organizations, and Global Philanthropy. William & Mary Law Review, 45: 1341-1451.

Dershowitz A, (2003). The Case for Israel. Hoboken, NJ: John Wiley & Sons.

Does de Willebois E, (2010). Nonprofit Organizations and the Combatting of Terrorism Financing: A Proportionate Reseponse. Washington DC: World Bank. https://doi.org/10.1596/978-0-8213-8547-0

Dvorin T, (Dec. 13, 2015). Ministers Approve Tax on Anti-Israel NGOs; Livni to Appeal. Arutz Sheva.

Ford JL, (Sep. 27, 2007). Forensic Accounting and White-Color Crime. Speeches—FBI. https://archives.fbi.gov/archives/news/speeches/forensic-accounting-and-white-collar-crime (accessed 2017).

Guernsey L, (Oct. 16, 2003). Digging for Nuggets of Wisdom. The New York Times.

IsraelGives, (2017). Israel's Amutot. http://www.israelgives.org/information (accessed 2017).

Lipman S, (Oct. 12, 2010). For the Perplexed, a Guide to Giving. The New York Jewish Week.

Mankiw G, (2012). Principles of Economics, 6th edition. Mason, OH: South-Western Cengage Learning.

Muller WH, (2008). Charities and Anti-Money Laundering: Is a "Seal of Approval" the Answer. Trusts & Trustees, 14(5): 259-271. https://doi.org/10.1093/tandt/ttn028

Naurath N, (Aug 2, 2011). Most Muslim Americans See No Justification for Violence. Gallap.

Romaniuk P., Haber J., (2008). Charities and Terrorist Financing. The CPA Journal, 78(3): 48-50.

Sahadi J, (Nov. 16, 2015). The Cost of Fighting Terrorism. CNN Money.

Schriber AA, Gross AG, Bielawsky AS, (eds.) (2010). The Proper Management of Amutot (Non-Profit Associations). Jerusalem: Registrar of Amutot.

Schuessler J, (Jan. 7, 2017). Modern Language Association Moves to Reject Academic Boycott of Israel. The New York Times.

Shear MD, Cooper H (Jan. 27, 2017). Trump Bars Refugees and Citizens of 7 Muslim Countries. The New York Times.

Treasury, (2005). Anti-Terrorist Financing Guidelines: Voluntary Best Practices Guideline for U.S.-Based Charities, Revised Edition. Washington DC: Treasury.

Warde I, (2007). The Price of Fear: The Truth behind the Financial War on Terror. Berkeley, LA: University of California Press.

Downloads

Published

2017-04-06

Issue

Section

Articles