Senator Seeks New Regulations for Charities

April 24, 2008

Senator Seeks New Regulations for Charities

A key senator wants to give the Federal Trade Commission the power to regulate nonprofit organizations including penalizing charities that say in their fund-raising appeals they are raising money for a particular cause but devote very little of it to that purpose.

The effort by Sen. Byron L. Dorgan, a North Dakota Democrat, is the first stab at putting the brakes on nonprofit organizations that spend a very low percentage of the money they raise on their charitable missions.

Recent House hearings found that several groups that help veterans of the Iraq and Afghanistan conflicts spend most of their donations on fund-raising expenses or salaries rather than veterans and their families.

A provision on the regulation of nonprofit groups was included in legislation to extend the Federal Trade Commission bill, S. 2831, that is being considered by the Interstate Commerce, Trade and Tourism Subcommittee, which Senator Dorgan chairs.

The provision’s impact goes beyond fund raising. It directs the Federal Trade Commission to protect consumers from “unfair and deceptive” practices by charities in the same way that it regulates such practices by businesses, says Justin Kitsch, Senator Dorgan’s communications director. Federal Trade Commission officials said in a hearing on the bill that the provision would enable them to challenge price-fixing or other anticompetitive practices by nonprofit hospitals, for example.

Anthony Conway, executive director of the Alliance of Nonprofit Mailers, says he thinks the provision is unnecessary. “There’s already plenty of oversight and regulatory-body scrutiny of nonprofits,” he says. “I don’t think adding another layer of oversight is needed, and I’m not sure it would be beneficial.”

— Elizabeth Schwinn

Comments

The HSUS is one of the biggest offenders, and I would hope this law passes and they are put under scrutiny. With the Michael Vic case, they asked for money to take care of his dogs. They didn’t have custody or anything to do with his dogs! It was a ploy to make more money. When called on it, they changed the website. Anyone that thinks that the huge amounts of money collected for the New Orleans animals after the hurricane went to the animals, needs to do some research to get the facts. The Louisiana Attorney General is investigating.

— Mary Apr 25, 01:08 PM #
I would have to agree with the above comment. And, I would add to that, the PETA oorganization. They scam people into donating money to save animals. And, that money is used primarily for lobbying to pass unconstitutional legislation against animal ownership and promoting a Vegan lifestyle. Many people give to these two VERY wealthy groups, thinking that thei money is going to save some poor abandoned animal. Very SAD. Ranks right up there with faith healers and snake oil salesmen!!!!!!

— M L Stumpff Apr 26, 11:41 PM #
i agree with both these comments. people donate alot of money to both peta and hsus thinking they are HELPING animals. neither has a rescue facility, they simply put them down and sometimes just dump the carcasses like in n.c. peta has also been associated with activities against research facilities, dog shows etc that should be considered as acts of terrorism. they bilk unsuspecting pet owners on false pretenses and should be shut down!! at the VERY least, they should not keep the HUGE tax shelter they have to support their fraudulant activities!

— Debbie Vaught Apr 27, 08:14 AM #
I agree the abuse of monies donated to, in particular, HSUS & PETA should be investigated and the abuse stopped. If indeed there are laws on the books already that would stop this abuse, then let’s get those laws enforced!!

— glenna briggs Apr 27, 07:37 PM #

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Senator Seeks New Regulations for Charities

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