Iowa AG seeks charity fundraising tracking system

DES MOINES (AP) - Thousands of Iowa charities would have to disclose how much of the money they raise actually benefits their cause under legislation the attorney general is drafting.

Advocates say creating an online financial disclosure system would prevent Iowans from being duped into donating to organizations that spend as little as 1 percent of what they raise on a charitable purpose. Iowa is one of just 10 states with no state registry for charities.

Bob Brammer, a spokesman for the attorney general's office, said the measure would create a minimal burden on charitable organizations. “In the end it will help increase true charitable giving in the state by highlighting our many well-run charities, while shedding light on questionable organizations that use up almost all the charitable donations for their own costs and profits,” he said.

But the measure could face a Statehouse backlash because of opposition from some charities that would have to pay an annual registration fee. Many non-profits already disclose financial information in tax filings open to the public. Some say they would resist paying a new, revenue-based fee - under $100 annually, for most - to finance the new system.

“It's not appropriate,” said Kyle Carlson, an attorney and lobbyist for Planned Parenthood of the Heartland. “People don't write a check to charities like Planned Parenthood to have us turn it over to the attorney general's office for bureaucratic work.”

There are 25,349 in-state non-profits operating in Iowa. Another 823 out-of-state groups are registered, according to the secretary of state. The attorney general's office estimates that 3,000 to 6,000 charities with headquarters in and out of the state would have to participate under the draft bill.

The state already requires some disclosure of financial information by professional fundraisers, but not charities they serve. A Des Moines Register investigation published in January 2009 found less than a quarter of the money collected by those fundraisers typically goes to the charities.