Oregon's groundbreaking new charity law takes tax break away

SALEM, Ore. (AP) Oregon's new charity law will punish those nonprofits that spend too little of their dollars on their missions.

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.