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Charity | Hurricanes derail Congress from dealing blows to nonprofits | Joel Belz

Charitable organizations of all kinds and all sizes—including hundreds of evangelical Christian groups—are breathing a sigh of relief. A dreaded piece of federal legislation that would have made life harder for nonprofits seems to have been derailed.

Along the way, many conservative groups have found themselves battling a long-time friend—Sen. Charles Grassley (R-Iowa), primary sponsor of the unpopular legislation. Only the force and fury of two giant hurricanes, Katrina and Rita, could slow down the powerful senator.

Mr. Grassley, who chairs the Senate Finance Committee, insists his efforts will help charities by requiring them to raise standards and increase trust among donors. Ugly scandals—first in big nonprofits like the United Way and the Nature Conservancy, and then at the Getty Foundation and at American University—prompted the senator to focus on policing the huge charitable community.