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Regulating Fund Raising: Join the Debate

April 25, 2008, 1:32 pm

The debate over how best to ensure charities are spending the right amount on fund raising expenses compared with their spending on charitable efforts is growing more intense.

In recent days, a number of proposals have been floated:

  • A top official at the Internal Revenue Service Thursday it will figure out how to use its authority to crack down on charities that are inefficient in their spending on fund raising and other expenses.
  • Members of the House are considering asking charities that send direct-mail appeals to post data about how much money from a solicitation will end up benefiting a charitable cause.
  • A key member of the Senate has proposed that the Federal Trade Commission start regulating charities to determine if their fund-raising appeals are fraudulent — especially if too little money raised goes to the cause.
  • An executive at a prominent direct-mail company, has drafted a legislative proposal to overhaul the way nonprofit groups disclose information about their fund-raising activities.

We want to hear what you think of all these efforts. Let us know your thoughts by clicking on the comment link.

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