Proposed regulation would harm charities and the people they help

Proposed regulation would harm charities and the people they help
2011-08-10 / Editorial

Sometimes the best of intentions produce consequences that prove to be disastrous. That is what is happening at this moment at the New Jersey Division of Consumer Affairs (DCA). A regulation (PPR-2011-0001) is under consideration that would require charitable organizations to inform donors in writing that they could designate their gifts. This regulation is being opposed by every Jewish federation in New Jersey and by all 20 United Way organizations in the state. As well it should be.

While contributors can already designate their gifts to fund the programs of their choice, the Jewish Federation and other charities need unrestricted funds to meet the most immediate needs. Funds must be available to meet the pressing needs at any given moment. As Ruth Cole, president of the New Jersey State Association of Jewish Federations, put it: “With mandatory designation, individuals would overwhelmingly give their gift to the most popular issue of the day and would not necessarily provide funds for feeding hungry seniors or other safety net concerns.”

The proposed regulation would also have the effect of adding a layer of bureaucracy to organizations trying to get every available dollar to those in need. The last thing that charities, struggling during an economic downturn with increased needs and reduced resources, should have is more administrative costs thrust upon them by government.

http://www.jewishvoicesnj.org/news/2011-08-10/Editorial/Proposed_regulation_would_harm_charities_and_the_p.html

designate their gifts. Not they have to. And what's the layer of bureaucracy needed to "inform" donors?

Sounds like charities want to keep their donors in ignorance of what they COULD do with their money. Am I missing something here?

Just not sure if there would be additional costs associated - and not clear if they would have to track (and later prove) that the money went exactly where the donor wanted it.

out of which the bigwigs get paid their cushy salaries.