§ 172-E — Disclosure of certain donations by charitable non-profit entities

New York § 172-E

• Jurisdiction: New York
• Law EXC: Executive
• Art. 7-A: Solicitation and Collection of Funds For Charitable Purposes

Text

§ 172-e. Disclosure of certain donations by charitable non-profit\nentities. 1. Definitions. For the purposes of this section:\n (a) "Covered entity" shall mean any corporation or entity that is\nqualified as an exempt organization or entity by the United States\nDepartment of the Treasury under I.R.C. 501(c)(3) that is required to\nreport to the department of law pursuant to this section.\n (b) "In-kind donation" shall mean donations of staff, staff time,\npersonnel or any other human resources, offices or office supplies,\nexcept that an in-kind donation shall not include an in-kind donation\nmade by a person or entity in the course of an activity that is\nsubstantially related to accomplishing the covered entity's tax exempt\npurposes where the in-kind donator is offering or providing goods or\nservices for substantially less than fair market value to individuals,\ncorporations or groups, and those goods or services are actually\npurchased or consumed by wholly unaffiliated individuals, corporations\nor groups for no charge or substantially less than fair market value,\nand may include, but is not limited to, pro bono legal services and\nother forms of technical assistance.\n (c) "Donation" shall mean any contribution, including a gift, loan,\nin-kind donation, advance or deposit of money or anything of value.\n (d) "Recipient entity" shall mean any corporation or entity that is\nqualified as an exempt organization or entity by the United States\nDepartment of the Treasury under I.R.C. 501(c)(4) that is required to\nfile a source of funding report with the commission on ethics and\nlobbying in government pursuant to sections one-h and one-j of the\nlegislative law.\n (e) "Reporting period" shall mean the six month period within a\ncalendar year starting January first and ending June thirtieth or the\nsix month period within a calendar year starting July first and ending\nDecember thirty-first.\n 2. Funding disclosure reports to be filed by covered entities. (a) Any\ncovered entity that makes an in-kind donation in excess of ten thousand\ndollars to a recipient entity during a relevant reporting period shall\nfile a funding disclosure report with the department of state. The\nfunding disclosure report shall include:\n (i) the name and address of the covered entity that made the in-kind\ndonation;\n (ii) the name and address of the recipient entity that received or\nbenefitted from the in-kind donation;\n (iii) the names of any persons who exert operational or managerial\ncontrol over the covered entity. The disclosures required by this\nparagraph shall include the name of at least one natural person;\n (iv) the date such donation was made by the covered entity; and\n (v) a description of the in-kind donation, including the charitable\npurpose advanced by such donation, if any, and any restrictions on the\nuse of such donation by the recipient entity.\n (b) The covered entity shall file a funding disclosure report with the\ndepartment of state within thirty days of the close of a reporting\nperiod.\n 3. Public disclosure of funding disclosure reports. The department of\nstate shall promulgate any regulations necessary to implement these\nrequirements and shall publish such reports on the department's website\nwhen authorized pursuant to subdivision two of this section; provided\nhowever that the secretary of state, or his or her designee, may\ndetermine that disclosure of all or a portion of the in-kind donations\nto the covered entity and financial assistance provided by any covered\nentity to one or more recipient entities, shall not be made public if,\nbased upon a review of the relevant facts presented by the covered\nentity, such disclosure may cause harm, threats, harassment, or\nreprisals to the source of the donation or to individuals or property\naffiliated with the source of the donation. The covered entity may\nappeal the secretary's determination and such appeal shall be heard by a\njudicial hearing officer who is independent and not affiliated with or\nemployed by the department of state. The total amount of in-kind\ndonations to the covered entity and financial assistance provided by any\ncovered entity to one or more recipient entities that are the subject of\nsuch appeal shall not be made public pending final judgment on appeal.\n 4. If a covered entity's or recipient entity's annual report filed\npursuant to section one hundred seventy-two-b of this article does not\ninclude a completed Internal Revenue Service Form 990 schedule B and\nthat covered entity makes, or that recipient entity receives, qualifying\ndonations pursuant to subdivision two of this section, that entity shall\nin addition to filing a disclosure with the department of law, also file\nwith the department of state a complete Internal Revenue Service Form\n990 Schedule B, regardless of whether such form is submitted or required\nto be submitted to the Internal Revenue Service.\n