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Bill > A1552


NJ A1552

NJ A1552
Increases percent of public employees' charitable contributions that may be spent on administrative costs.


summary

Introduced
01/14/2020
In Committee
01/14/2020
Crossed Over
Passed
Dead
01/11/2022

Introduced Session

2020-2021 Regular Session

Bill Summary

This bill would increase the percent of public employees' charitable contributions that organizations may use on administrative expenses from 10 percent to 15 percent. The New Jersey Employees Charitable Campaign is the only approved charitable payroll deduction solicitation of State and local employees. Each year, thousands of State employees support their local communities by making tax-deductible charitable contributions directly through a payroll deduction. These contributions go toward qualifying community institutions like environmental organizations, senior citizen support groups, and afterschool tutoring, among many others. When the Legislature initially passed the "Public Employee Charitable Fund-Raising Act" in 1985, the amount that a charitable organization could use toward administrative costs was capped at 10 percent, which ensures that overhead does not outpace actual charitable spending. In raising the cap on administrative costs to 15 percent, the vast majority of donations would still go directly toward the underlying projects while permitting charities in New Jersey to use more funds to grow their organizations and support their broader missions.

AI Summary

This bill would increase the percent of public employees' charitable contributions that organizations may use on administrative expenses from 10 percent to 15 percent. The New Jersey Employees Charitable Campaign is the only approved charitable payroll deduction solicitation of State and local employees, and the funds raised go towards various community institutions. By raising the cap on administrative costs, the vast majority of donations would still go directly toward the underlying projects while permitting charities in New Jersey to use more funds to grow their organizations and support their broader missions.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

Introduced, Referred to Assembly State and Local Government Committee (on 01/14/2020)

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