MEMO OF SUPPORT
A1141-A (Paulin) / S4817-A (Krueger)
May 25, 2021
TITLE OF BILL
An act to amend the executive law, in relation to prohibiting the disclosure of certain information required on financial disclosure reports of certain not-for-profit organizations.
SUMMARY OF PROVISIONS
Section 1 amends subdivision 8 of section 172 of the executive law to prohibit the disclosure of financial disclosure forms filed by 501(c)(3) charities that include donors’ names, telephone numbers, addresses and amounts contributed by donors. Such information could only be disclosed by court order or used for investigations and litigation. Section 2 amends subvision 9 of section 172-b of the executive law to remove the requirement that 501(c)(3) charities file annual financial statements with the New York Department of State. Section 3 states that the act takes effect immediately.
STATEMENT OF SUPPORT
Part UU of A9505-B of last year’s budget included language requiring all 501(c)(3) and 501(c)(4) organizations in NY State to file financial disclosures with the Department of State (DOS). 501(c)(4) organizations may engage in political campaign activities and lobbying that c(3) groups may not. However, the law passed via the budget requires 501(c)(3) charities to file the same disclosures as 501(c)(4) groups with DOS.
501(c)(3) charities are already required to file financial disclosure reports with the Attorney General’s Charities Bureau, making the DOS filing requirement duplicative. Passing this bill would spare 501(c)(3) charities, many of which have limited resources, from having to dedicate staff time to fulfilling redundant and illogical bureaucratic requirements.
Reinvent Albany supports this bill and urges its immediate passage in the legislature.
Click here to view the memo as a PDF.