May 29, 2003

Members of Congress Don't Understand What Good Grant Making Takes

By Mark R. Kramer

Legislation recently introduced in the House of Representatives would bar private foundations from counting administrative expenses, such as salaries and rent, toward the minimum 5 percent of assets they must distribute annually. The result would be at least $1-billion more in annual grants, surely a good thing for charities in these lean times. For those concerned with the effectiveness of the nonprofit world, however, the long-term harm of the proposal would far outweigh its short-term

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