Elizabeth McGuigan in RealClear Policy: Red Tape Strangles Charities

In an op-ed recently published at RealClear Policy entitled “Red Tape Strangles Charities,” Philanthropy Roundtable Vice President of Policy and Government Affairs Elizabeth McGuigan and Senior Fellow and Director of the Center for Medical Economics and Innovation at Pacific Research Institute Wayne Winegarden discusses the Roundtable’s new study, The 50-State Index of Charity Regulations, that highlights how excessive state-level regulations negatively impact charities in those states.

Below are excerpts from the op-ed:

“A recent Gallup poll shows Americans see the government as the top problem facing the nation. For the most vulnerable Americans this may be especially true as new research shows that excessive government burden is having a negative impact on the organizations that struggling individuals and families rely on: charities.

“For the first time, a new study published by Philanthropy Roundtable ranks all 50 states on the compliance costs charities face and found that more charity regulations may mean fewer charities in a state. We noted which states impose sales taxes on charities, which states require expensive accounting audits every year, how much it costs to start a new charity and what other red tape is wrapped around charities that support the most vulnerable in our communities.

“The five states with the friendliest regulatory environment toward charitable organizations are Montana, Wyoming, Nebraska, Delaware and Idaho. The five states with the most burdensome regulatory environment toward charitable organizations are Connecticut, Mississippi, New Jersey, Florida and Pennsylvania.”

“Why does this issue of overregulation matter? The vast majority of charities are small. Nearly 90% of these groups spend less than $500,000 a year advancing their altruistic missions and goals. And every dollar a charity must spend to meet regulatory obligations is a dollar that cannot go to help those in need. This means fewer resources for your local food bank or homeless shelter, fewer students helped by after-school programs, and instead, more money for lawyers and accountants.”

Please continue reading “Red Tape Strangles Charities” in RealClear Policy.