While the Better Business Bureau recommends donors avoid any charity spending less than 65 percent of their money on their charitable mission, a small but persistent group of charities continue to spend most of their money on fundraising and administration. A groundbreaking new law passed in Oregon in 2013, one aimed at protecting donors from charities that spend too little on their charitable programs and services. House Bill 2060 eliminates the state income tax deduction for donors who give money to charities that fail to spend at least 30 percent of their donations on their charitable mission. For charities that spend more than 70 percent of donations on management and fundraising, Oregonians who donate to them cannot not take state income-tax deductions on those gifts.
The Nonprofit Association of Oregon has compiled a list of Frequently Asked Questions for nonprofit organizations regarding the new law and The Oregon Attorney General's office compiles an annual list of the 20 Worst Charities that are registered to do business in Oregon. To find out how much of your donation will go to a charity’s actual purpose, search the Oregon Department of Justice's database of registered charities.
Multnomah County Library subscribes to Guidestar, a database available at the Central Library that provides information on programs and finances of charities and nonprofits. Need help finding information on your favorite charity? Librarians are happy to help!