By Elizabeth McGuigan & Wayne Winegarden
A recent Gallup poll shows Americans see the government as the top problem facing the nation. For the most vulnerable Americans this may be especially true as new research shows that excessive government burden is having a negative impact on the organizations that struggling individuals and families rely on: charities.
For the first time, a new study published by Philanthropy Roundtable ranks all 50 states on the compliance costs charities face and found that more charity regulations may mean fewer charities in a state. We noted which states impose sales taxes on charities, which states require expensive accounting audits every year, how much it costs to start a new charity and what other red tape is wrapped around charities that support the most vulnerable in our communities.
The five states with the friendliest regulatory environment toward charitable organizations are Montana, Wyoming, Nebraska, Delaware and Idaho. The five states with the most burdensome regulatory environment toward charitable organizations are Connecticut, Mississippi, New Jersey, Florida and Pennsylvania.