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

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. Classification JEL: H56; L31; M41; M42; M48.