Oregon’s new charity law takes tax break away

Jun 30, 2013, 5:38 PM

SALEM, Ore. (AP) – 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 in Sunday’s paper (
http://is.gd/yJAIca). 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.

The Oregon Department of Justice already has identified the top 20 worst charities, which all spend less than 30 percent of their money on programs and services. The list is available on the agency’s website:
http://is.gd/CaktEo.

It includes a Michigan-based law enforcement charity that the department says spent less than 3 percent of its money on programs over the past three years. Also on the list is a California-based international ministries group that allegedly spent just over 3 percent on programs.

All 20 of the worst charities are based out of state. They spend between 2.7 and 21.7 percent of donations on programs, according to the Justice Department.

Some states, including Oregon, used to have laws prohibiting charities from soliciting donations if they were paying too much to themselves and their fundraisers.

The laws were repealed after the U.S. Supreme Court ruled in 1980 that attempts to restrict a charity’s ability to solicit donations violated their First Amendment rights.

Oregon’s new law likely would survive a challenge because it doesn’t restrict a charity’s ability to do fundraising, Department of Justice spokesman Jeff Manning said.

Instead, donors to those charities can no longer claim a state tax deduction. The charities also will lose their local property tax exemptions.

“These organizations have found the business model of using a nonprofit as a cover for what’s basically a telemarketing for-profit firm,” White said. “They’re giving charities and nonprofits a black eye and need to be gotten out of our midst.”

State officials estimate fewer than 100 charities will be affected by the law in its first year.

___

Information from: Statesman Journal,
http://www.statesmanjournal.com

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

United States News

People wearing protective masks walk in the rain past an electronic stock board showing Japan's Nik...
Associated Press

Asian shares rise on optimism about US, China economies

TOKYO (AP) — Asian shares were mostly higher Wednesday as regional markets looked to strong economic signs out of the U.S. and China as drivers of growth. Benchmarks rose in Japan, China and Australia, although shares dipped in South Korea. Analysts warned major risks remain, such as surging cases of COVID-19 in some countries in […]
2 hours ago
Clouds cast shadows near wind turbines at a wind farm along the Montana-Wyoming state line on Monda...
Associated Press

Wind energy boom and golden eagles collide in the US West

CODY, Wyo. (AP) — The rush to build wind farms to combat climate change is colliding with preservation of one of the U.S. West’s most spectacular predators — the golden eagle — as the species teeters on the edge of decline. Ground zero in the conflict is Wyoming, a stronghold for golden eagles that soar […]
1 day ago
This photo provided by University of Georgia graduate research assistant Matt Phillips, shows resea...
Associated Press

Prehistoric fish may spawn in Georgia: 1st time in 50 years

Scientists and students embarking on a census of Georgia lake sturgeon have found three females with mature eggs — an indication the armored “living fossils” may be reproducing in that state for the first time in a half-century. “It’s exciting because it’s confirmation that they are becoming mature and trying to spawn,” Martin J. Hamel, […]
1 day ago
A TV screen showing a news program reporting about North Korea's missile launch with a file footage...
Associated Press

South Korean leader: Seoul won’t seek own nuclear deterrent

SEOUL, South Korea (AP) — South Korean President Yoon Suk Yeol said Wednesday his government has no plans to pursue its own nuclear deterrent in the face of growing North Korean nuclear weapons capabilities, even as the North fired two suspected cruise missiles toward the sea in the latest display of an expanding arsenal. Yoon’s […]
1 day ago
A buoy sits high and dry on cracked earth previously under the waters of Lake Mead at the Lake Mead...
Associated Press

EXPLAINER: Winners, losers in water cuts for Western states

WASHINGTON (AP) — People in Arizona and Nevada won’t face bans on watering their lawns or washing their cars despite water shortages on the Colorado River. But officials said Tuesday there will still be less water available next year from the river that serves 40 million people in the West and Mexico. Observers say a […]
1 day ago
FILE - Former New York Mayor Rudy Giuliani, who was a lawyer for former President Donald Trump, spe...
Associated Press

Rudy Giuliani set to testify in Georgia election probe

ATLANTA (AP) — Rudy Giuliani is scheduled to appear in an Atlanta courthouse to testify before a special grand jury that is investigating attempts by former President Donald Trump and others to overturn his 2020 election defeat in Georgia. It’s unclear how much the former New York mayor and attorney for Trump will be willing […]
1 day ago

Sponsored Articles

...
Mayo Clinic Orthopedics and Sports Medicine

Why your student-athlete’s physical should be conducted by a sports medicine specialist

Dr. Anastasi from Mayo Clinic Orthopedics and Sports Medicine in Tempe answers some of the most common questions.
...
Dr. Richard Carmona

Great news: Children under 5 can now get COVID-19 vaccine

After more than two years of battle with an invisible killer, we can now vaccinate the youngest among us against COVID-19. This is great news.
...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Vaccines are safe if you are pregnant or breastfeeding

Are you pregnant? Do you have a friend or loved one who’s expecting?
Oregon’s new charity law takes tax break away