Tuesday, June 18, 2013

Oregon Sets 30% Program Spending Benchmark for Charities - NPQ - Nonprofit Quarterly

Oregon Sets 30% Program Spending Benchmark for Charities - NPQ - Nonprofit Quarterly: NPQ has had a number of stories on overhead lately, including our blockbuster today where three prominent organizations are calling for an end to the overuse of overhead as a measure of grantworthiness but what about when nearly no money of what is raised goes to program? Oregon has now enacted the nation’s toughest law on spending by nonprofits. The law will pull eligibility for the state charitable tax deduction for donations from charities that do not spend at least 30 percent of their donations “to support their mission.” Charities that fall short of the 30 percent threshold are required to disclose that information or face a penalty of up to $25,000.

Given recent debates within the n

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