Palestinian NGOs

Why are Palestinian non-governmental organizations (NGO’s) refusing to sign a commitment to the US that they won’t transfer money to terror organizations, and why won’t the western media pick up on this?
From Jerusalem Post:

The US and some EU countries lately informed the Palestinian NGOs that, prior to entering into funding agreements, they must sign the pledge, which is entitled “Certification Regarding Terrorist Financing.”

According to the document, the Palestinian NGOs pledge not to “provide material support or resources to any individual or entity that advocates, plans, sponsors, engages in, or has engaged in terrorist activity, including but not limited to individuals and entities”…

A statement issued by one of the major “coordinating committees” of the Palestinian NGOs called for a series of meetings to begin on Monday to discuss the antiterrorism commitment and how to put pressure on Washington to scrap it…

“It is not clear on what basis and upon which criteria the definition of ‘terrorist acts’ has been set, especially in light of Israeli attempts to portray the struggle of the Palestinian people for freedom and independence as ‘violent and terrorist acts,’ ” the statement added.

When media outlets refuse to call suicide bombings ‘terror,’ they contribute to (if not create) this blurring of the essential definition of terrorism:

Terrorism: The calculated use of violence (or threat of violence) against civilians in order to attain goals that are political or religious or ideological in nature; this is done through intimindation or coercion or instilling fear.