N.J. Drops Proposal to Require Charities to Tell Donors They Can Earmark Money

New Jersey regulators have decided not to pursue a proposal to require charities to tell donors they can earmark their contributions for specific programs, an idea that had drawn strong criticism from nonprofit leaders.

The draft proposal, issued in June by the Division of Consumer Affairs, would have required charities with at least $250,000 in annual contributions to provide forms allowing donors to specify how their gifts should be spent — and to tell them that any undesignated money could pay for administrative and fundraising costs.