Danger could increase for ministries and their partners abroad if Congress mandates that new specifics about foreign grants be reported on IRS Form 990. ECFA President & CEO Michael Martin sent a letter to Capitol Hill earlier this summer expressing that concern about the Foreign Grant Reporting Act (H.R. 8290) after it sailed through a committee in the U.S. House of Representatives.  

“In its current form, this legislation could place many Christian missions partners and other charitable workers abroad in serious – even life-threatening – danger,” wrote Martin to Rep. Lloyd Smucker (R-Pa.), author of H.R. 8290. 

Thankfully, such words of caution are getting attention. In fact, Congressman Smucker has been receptive to ECFA’s concerns, and his legislative team is exploring ways to address them. 

The intention behind the Foreign Grant Reporting Act is to close what some perceive as a “loophole” in the current iteration of Form 990 that requires more detailed disclosures about grants to domestic groups than to partners abroad. By requiring more details about foreign grantees (including their names and addresses, aggregate amounts of funding they received, and whether they are considered charities), supporters of H.R. 8290 hope to prevent funds from being funneled to terrorists like Hamas, as well as other malicious organizations.  

In his letter to Smucker, Martin appreciated the heart behind the bill. However, he suggested the legislation in its current form would actually “place law-abiding organizations… in a very difficult spot.” He explained that many ECFA-accredited members work with brothers and sisters in Christ abroad to serve local communities around the world, including in places where governments and other antagonists severely persecute Christians. 

“The bill will force the exposure of information about their international partners that likely would be used to identify and harm those workers and individuals they are trying to help,” Martin explained. 

Martin welcomed ongoing conversation about Form 990’s Schedule F and potential ideas to improve nonprofit sector transparency and accountability. However, on behalf of ECFA, he urged a pause on the current text of the Foreign Grant Reporting Act. 

ECFA will continue to encourage Members of Congress to ensure that precautions for Christian workers in harm’s way internationally are included in this legislation before it advances further. ECFA also encourages churches and ministries seeking best practices on working confidently and above reproach with partners abroad to re-visit ECFA resources such as our webinar on “Key Considerations When Operating Internationally” and our e-book on “6 Essentials of International Financial Activity for Ministries.”