DATELINE: July 26, 2011, Chicago
Jack Siegel submitted comments today to the New Jersey Division of Consumer Affairs Charities Registration Unit on a proposal designed to encourage those contributing funds to charity to restrict them to particular programs. Although the Division has shown some willingness to cut back the rule, as written, the rule would preclude a charity from using any funds earmarked for specific programs to cover fundraising and administrative expenses. As Jack points out in his comment, the proposal is counterproductive. Regulators should not be showing a preference for restricted gifts over unrestricted ones, nor should regulators make it difficult for charities to recover legitimate administrative or fundraising expenses.
For a copy of Jack's comment letter, click here.