This paper is the result of collaborative research conducted by OMB Watch and Grantmakers Without Borders. We believe charities in the United States and throughout the world play a key role in democratic systems by giving citizens a vehicle for participation, providing tools and information that help people get involved, and delivering assistance to those in need. Since Sept. 11, 2001, we have witnessed counterterrorism programs erode the freedom and ability of charities and their funders to carry out their missions and improve the lives of the world's people. We believe that this is damaging civil society in the United States and negatively impacting the nation's reputation and effectiveness on the global stage. We hope this paper will serve as a resource for charities, foundations, and policymakers as they seek to understand the impacts that counterterrorism measures have on charities and as they look to develop more equitable policies that protect the inherent rights of charities and the people the organizations serve.