State officials and nonprofit leaders believe Oregon is the first state in the nation to take this approach.
The Statesman-Journal reports House Bill 2060 will eliminate state and local tax subsidies for charities that spend more than 70 percent of donations on management and fundraising over a three-year period.
The Oregon Department of Justice has already identified the top 20 worst charities.
They include the Michigan-based Law Enforcement Education Program, which spent less than 3 percent of its money on programs over the past three years. Another loser is the California-based Shiloh International Ministries, which spent just over 3 percent on programs.