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NAO Supports Oregon House Bill 2060
On February 14, NAO testified to the Oregon House Committee on Consumer Protection and Government Efficiency in support of House Bill (HB) 2060, which mandates that a charity must devote at least 30% of expenses to charitable programs. NAO believes that a “minimum floor” of 30% will easily identify those under-performing charities that, year-after-year, devote only a fraction of donated funds to their program mission. These organizations are anomalies, draining away charitable donations from effective charities providing essential services to our communities. HB 2060 requires that charities which run afoul of the law notify donors that contributions will not be deductible for state tax purposes. NAO views HB 2060 as an important step in distinguishing between the vast majority of high-performing nonprofits and those that are clearly not, particularly at this time of debate at the federal level around removing or capping the charitable giving incentive. NAO is mindful that setting a blanket threshold has some risks. There may be legitimate reasons why a worthwhile charity could fall below even the 30% expenditure minimum. We believe that HB 2060 recognizes authentic reasons for under-performance and creates appropriate exceptions. These considered exceptions, as well as the 30% threshold, are critical to attacking the problem identified without imposing undue hardships on legitimate charities. NAO estimates that HB 2060, if passed and enacted, would not cause any undo harm or reporting burden to the vast majority of nonprofits operating in Oregon, but will go a long way to upholding the integrity of our sector.
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