Ore. Seeks to Set Minimum Standard for Charities to Spend on Services

Charities in Oregon that spend less than 30 percent of their budget to provide services would lose their tax-exempt status under legislation now before state lawmakers, The Oregonian writes.

The bill, pushed by state Attorney General John Kroger and backed by the Nonprofit Association of Oregon, would also require fines for organizations that lose their tax exemption but do not disclose to potential donors that gifts aren’t deductible.

The measure would only cover groups with annual budgets that exceed $200,000 and would not affect federal tax status.

Mr. Kroger – whose office issued a 2010 list of “Oregon’s 20 Worst Charities” ranked by proportion of spending on their charitable mission – told a state Senate committee last month that the bill addresses “a very real and present problem” of organizations that solicit in the state but do “almost no charitable work.”