I think I need to translate this one.
"No justification" = "the organization gave material support to state-designated terrorist organizations"
"No recourse" = "the bill legally mandates that any group effected be notified and given ample opportunity to denounce the terrorist group"
"Shutdown" = "lose non-profit status"
Yes, the intention is to disincentivize groups from giving their support to Hamas. Yes, the rules on what the government can and can't call "terrorists" are vague at best and could be exploited. The punishment is paying taxes on your profits. I have enjoyed watching the grifters who rake in millions in donations to do nothing of consequence freak out that they might have to pay some taxes. The Sunrise Movement in particular, a group whose raison d'etre is just campaigning for Democrats on the basis of climate activism, brings in millions in donations annually and spends the lion's share on salaries for themselves. They've spent weeks now spreading basically crimson's description of this bill because they are terrified of just the possibility of being told they either need to denounce terrorism or pay taxes on their profits. It is olympic-level telling on yourself when you can, in a single statement, implicate yourself in support for terrorism and state that having your "non-profit" charity taxed on its profits would be a crippling blow to you.