Legislation pushed by Oregon’s attorney general to punish nonprofit groups that spend most of their money on administration and fund raising appears likely to die in the state legislature, The Oregonian writes.
Attorney General John Kroger proposes stripping tax breaks from organizations that spend less than 30 percent of their revenue on their charitable missions. (Read more about Mr. Kroger’s background and efforts to fight charity fraud in this article from the latest issue of The Chronicle.)
With backing from the Nonprofit Association of Oregon, the measure sailed through the Oregon Senate, but it faces stiff opposition from the co-chair of the House committee considering the measure.
Rep. Vicki Berger said she does not want to hold a hearing on the legislation–a move that would effectively kill the bill–because it could “send a message about fund raising that is negative.”
Some nonprofit officials have also criticized the bill, saying that relying primarily on tax documents to determine spending can create a distorted picture of a charity’s effectiveness.






