Demand California pass a law that takes away tax exempt status from charities that spend less than 50% of donations on actual programs

California

Social Issues

Problem

These organizations have found the business model of using a nonprofit as a cover for what's basically a telemarketing for-profit firm.

Comments

Solution

California should pass the same law as Oregon, but with a 65% minimum of contributions that are spent on actual programs as opposed to being spent on fundraisers or management. This law would not restrict a charity's ability to do fundraising, only donors to those charities can no longer claim a state tax deduction and charities will lose their local property tax exemptions.

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Facts

Oregon is the first state to pass a law taking away the ability of donors to claim a state tax deduction to those charities that spend less than 30% of donations on actual programs. The Oregon law also takes away those charities local property tax exemptions. The Better Business Bureau Standards for Charity Accountability require that charities spend at least 65% of its total expenses on program activities and spend NO more than 35% of related contributions on fund raising: http://www.bbb.org/us/standards-for-charity-accountability/

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United Way of the Bay Area paid a total of 60% of contributions to Grants and Programs in 2011, meaning 40% (6.3 million) went to Fundraising and Management & General ! -- T.J. Posted At: 2013-07-08 21:09:32 UTC

Action

Stop donating to charities that do not meet the Better Business Bureau standards for Charity Accountability. http://www.bbb.org/us/standards-for-charity-accountability/ Stop donating to the United Way as part of payment deductions. Let your employer know that the United Way program contributions are unacceptable. The United Way of the Bay Area spent 62% of expenses on programs and grants in 2012. While 38% went to Fundraising and Management expenses. http://www.uwba.org/wp/wp-content/uploads/2010/04/11-12-UWBA-Annual-Report.pdf

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Stop donating to charities that do not meet the BBB standards for Charity Accountability http://www.bbb.org/us/standards-for-charity-accountability/ This is a better action that stopping donations to all charities which hurts those charities that are highly efficient. -- T.J. Posted At: 2013-07-09 17:46:34 UTC

Posted by T.J.

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