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Page 1 of 19 Financial Reform Act Protects Non Profits from Government Oversight
President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act, which will create an independent Consumer Financial Protection Bureau housed within the Federal Reserve to prevent improper financial practices. The law will also give the Federal Reserve Bank the authority to regulate interchange fees on debit cards by ensuring that fees charged for debit card transactions are reasonable, which may impact charitable organizations receiving online donations.
However, the final bill includes language that protects nonprofits from burdensome oversight by the proposed new agency. As recorded in the bill, the bureau does not have the authority to supervise or regulate “any activities related to the solicitation or making of voluntary contributions to tax-exempt organizations.”
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