Oregon charities are about to be in store for a new change this summer. That's because the Oregon State Senate is close to passing a new law that would punish charities that don’t spend 30 percent of their expenses on programming for three years. If they don't comply to these new rules, they would lose certain state tax deductibility. Nonprofits that fall below the 30% mark would still be able to solicit donations, but they would have to disclose those contributions are not deductible.
Like any law, there will be exceptions to the new rule. For example, charities that earn less than $200,000 in annual revenue would be exempt, as well as those raising money for capital campaigns.
The bill appears to have the support of many nonprofit organizations in Oregon, including The Nonprofit Association of Oregon which has recently came out in favor of the bill. However the DMA Nonprofit Federation has made it clear that they will oppose it.