California Drug Bill Could Hike Accounting Costs for Charities

When Hurricane Dorian battered the Bahamas last month, Americares Foundation dispatched teams of doctors and nurses as well as shipments of life-sustaining drugs for asthma, diabetes, and hypertension.

A large portion of such drugs Americares distributes to needy areas are donated by pharmaceutical companies, according to donation details on the Stamford-Conn.-based charity’s balance sheet.

That pivotal drug donation network, however, could become more complicated and costly for charities under recently passed legislation in California. The bill awaiting action by Gov. Gavin Newsom (D), A.B. 1181, aims to prevent groups from inflating their balance sheets by forcing them to ...