Editorial: Hold charities accountable

Monday, Dec. 17, 2007 | 7:08 a.m.

A House committee heard testimony Thursday from a nonprofit watchdog group that said eight veterans' charities spent less than a third of the money they raised on helping wounded veterans.

The House Oversight and Government Reform Committee is investigating the assertions detailed in a report by the American Institute of Philanthropy - which cites such incidents as a charity paying its founder salary and benefits amounting to more than $425,000 last year.

Federal tax laws regulate what percentage of a charity's money can be spent on lobbying and other political activity, but federal law doesn't regulate how much a charity can spend on items such as fundraising and overhead.

Rep. John Sarbanes, D-Md., a member of the oversight committee, told The Washington Post that veterans' charities should be held accountable and that "some of the practices being described are simply outrageous."

Veterans' charities weren't the only groups whose practices were called into question last week. The New York Times reported that accountability is lacking in "embedded donations," in which a part of an item's purchase price is supposed to go to charity. There often is no way of knowing how much is raised for charity or where exactly the money goes from these purchases.

During the holidays, people often feel more compelled to give to groups that help those who are less fortunate. We would never want to deter charitable giving, but donors should carefully research the causes and groups they support and find organizations that have proven accountability.