August 8, 2011
Summer State Update: Mass. & Oregon Reject Restrictions on Charities; NY Opens Inquiries into Same
Despite the summer heat and continuing fiscal crisises, some state officials still found time to consider additional regulation of charities. Here are updates on some of the most significant developments:
Massachusetts: We previously blogged about proposed legislation in Massachusetts that would have prohibited charities compensating directors without Attorney General approval. The Chronicle of Philanthropy reported last month that legislature in that state rejected the proposal, although its state Senate sponsor vowed to continue to pursue it in the future.
Oregon: We also previously blogged about proposed legislation in Oregon that would have given the Attorney General in that state authority to disqualify certain charities from receiving (Oregon) tax deductible contributions based on their level of program expenditures. The same Chronicle of Philanthropy article also reported that this legislation failed, although the Attorney General stated he planned to pursue this measure in the future.
New York: Attorney General Eric T. Schneiderman announced the creation of a "Leadership Committee for Nonprofit Revitalization" to develop a serious of recommendations "to reduce the regulatory burdens and costs on nonprofits while strengthening nonprofit accountability." More recently, Governor Andrew M. Cuomo announced a statewide review of executive compensation paid by taxpayer supported nonprofits, possibly triggered by news reports focusing on high compensation at nonprofits that provide Medicaid-financed services according to a NY Times article on the review.
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