SALEM -- Oregon is cracking down on bogus charities.
A new law puts an end to tax deductions for donors to non-profits that fail to spend at least 30 percent on their charitable mission.
It's a law to discourage these rogue non-profits from doing business in Oregon.
Oregon is the first state to pass legislation to help put a stop to charities that pull at your heartstrings while at the same time pulling at your purse strings.
There are some 18,000 registered non-profits in Oregon and many doing good, worthwhile and needed work. But there are a few, many out-of-state so called charities where most of the money goes to pay professional fundraisers with very little, in some cases as low as 2.7 percent that actually goes to the charity’s mission.
As part of the new law, those charities must tell donors their generosity is not eligible for a tax deduction.
“We have a new enforcement mechanism by virtue of this new law and we can bring an action against them for $25,000 per violation,” said Oregon Attorney General Ellen Rosenblum.
Rosenblum said to be on the lookout for charities that use veterans, police, and children in their pitch.
Also, there are more of these less than honorable charities that come out of the woodwork in times of natural disasters.
The law goes in to effect in January. For more information about how to check up on a charity that asks for you money visit the Better Business Bureau’s donation tips page and the Nonprofit Association of Oregon.