Oregon is a first with charity crackdown law

Oregon Faith News Note:

Oregon is going farther than any other state in going after charities that fail to adhere to their mission standards with a new law signed into law by the Governor this year. Oregon non-profit charities that spend less than 30% of their functional expenses on the charitable programs and services to which they raised funds for will be in non compliance with the new law. The nonprofit will risk losing their eligibility for tax deductible donations for Oregon income tax purposes. Here is more from KATU-2.

State officials and nonprofit leaders believe Oregon is the first state in the nation to pass a charity law that punishes nonprofits that spend too little of their money on their missions.The law will eliminate state and local tax subsidies for charities that spend more than 70 percent of donations on management and fundraising over three years, the Statesman-Journal reported. The measure, House Bill 2060, was signed by the governor in June. “No other state has done this,” said Jim White, executive director of the Nonprofit Association of Oregon. “We’re the first in the country, and we should be proud of that.” There are 17,152 charities registered to solicit funds in Oregon. About 23 percent of those are based out of state.


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