Opinion: Charity Cons Shouldn’t Lead to Harsh Regulations

Because of the low level of oversight and regulation of nonprofit groups, criminals can use them to steal millions of dollars — but that doesn’t mean nonprofit groups should have strict government regulation, writes Richard C. Morais in Forbes magazine.

Mr. Morais cites several examples of con artists committing fraud through foundations or charities to rip off donors.

“America’s private kindness is subsidized by the state, in the form of tax write-offs, and there is a danger that Congress will one day become filled with Enron-like disgust and enact Sarbanes-Oxley-type legislation for nonprofits in a toxic clean-up,” he writes. “That’s a tragedy worth heading off with better practices. Excessive regulation could effectively kill the innovation and positive energy currently rippling through the charity industry.”