Should Congress Act to Curb Fund-Raising Abuses?

Lawmakers at a Congressional hearing yesterday said they wanted to explore ways the federal government could crack down on veterans charities that spend most of their donations on fund-raising activities.

Paulette V. Maehara, president of the Association of Fundraising Professionals, said she would welcome a federal ban on contracts that promise outside fund-raising companies a certain percentage of the donations they take in.

Jack Siegel, a Chicago lawyer and accountant, said in his blog that Congress should not mess with “fund-raising metrics.” But it should consider giving more money to the Internal Revenue Service division that oversees tax-exempt organizations or including charities in the ban on telemarketing to people who have signed up for the federal “do not call” registry.

What do you think? Should Congress act to curb the abuses highlighted at the hearing on veterans charities? If so, what should it do?