Prohibits the disclosure of the names, addresses and telephone numbers of contributors and the amounts contributed that are reported on financial disclosure reports of certain not-for-profit organizations.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A11154
SPONSOR: Rules (Paulin)
 
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
 
PURPOSE OR GENERAL IDEA OF BILL:
To ensure that constitutionally protected personal and private data such
as names, addresses and telephone numbers of those who choose to
contribute to 501(c)3's Not For Profits are protected from unnecessary
disclosure.
 
SUMMARY OF PROVISIONS:
This legislation ensures that when certain sensitive data concerning
501(c)3 Not For Profits is reported to the Office of the Attorney Gener-
al and the Department of State it shall be used solely for the purpose
of enforcing existing laws-but constitutionally protected personal and
private data such as names, addresses and telephone numbers of individ-
ual contributors shall not be part of the public record and shall remain
private and not be subject to disclosure.
 
JUSTIFICATION:
Most 501(c)(3) not-for-profit organizations are required to file their
federal tax filing with the New York Attorney General's Charities
Bureau, annually. However, as of January 1, 2021, those organizations
will have to file identical documents with the Department of State in
addition to the Charities Bureau.
This new filing requirement will make New York the only state that
requires 501(c)(3) organizations to file IRS Form 990 Schedule B infor-
mation with a state agency without also requiring that agency keep the
information confidential.- If identifiable information is not redacted
from public record, it is likely that potential donors who want to
contribute to nonpolitical 501(c)(3) organizations but prefer to main-
tain their anonymity will be discouraged from donating altogether.
The additional requirement for 501(c) (3) organizations to file with the
Department of State in addition to the Charities Bureau is both redun-
dant and burdensome for non for profits. Therefore, this bill would
remove the added filing requirement with the Department of State. Addi-
tionally, this bill would protect the privacy of donors by prohibiting
the publication of financial disclosure records that include the names,
addresses, or telephone numbers of donors and the amounts donated by
them.
 
PRIOR LEGISLATIVE HISTORY:
New bill
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
11154
IN ASSEMBLY
December 4, 2020
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Paulin,
Magnarelli, McDonough, Giglio) -- read once and referred to the
Committee on Governmental Operations
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
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 8 of section 172 of the executive law, as
2 amended by chapter 43 of the laws of 2002, is amended to read as
3 follows:
4 8. Forms, financial reports, professional fund raisers' contracts, and
5 other documents required to be filed pursuant to this article become
6 public records of the attorney general, except that where such records
7 include the names, addresses or telephone numbers of contributors and
8 amounts contributed by them, such information shall not be a public
9 record and shall not be subject to disclosure pursuant to article six of
10 the public officers law, and the attorney general shall keep such infor-
11 mation confidential and use it solely for the purpose of enforcing the
12 not-for-profit corporation and religious corporation laws, the
13 provisions of this article, article eight of the estates, powers and
14 trusts law, and the attorney general's other charitable trust oversight
15 responsibilities.
16 § 2. Subdivision 9 of section 172-b of the executive law, as added by
17 section 1 of Part UU of chapter 55 of the laws of 2020, is amended to
18 read as follows:
19 9. Any registered charitable organization [that is required to file an
20 annual financial report pursuant to subdivision one or two of this
21 section, or] that is required to file a funding disclosure report pursu-
22 ant to section one hundred seventy-two-e of this article, and/or a
23 financial disclosure report pursuant to section one hundred
24 seventy-two-f of this article for a reporting period during the applica-
25 ble fiscal year shall also be required to file such annual financial
26 report, including all required forms and attachments, with the depart-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD17526-01-0
A. 11154 2
1 ment of state. Where such records include the names, addresses or tele-
2 phone numbers of contributors and amounts contributed by them, such
3 information shall not be a public record and shall not be subject to
4 disclosure pursuant to article six of the public officers law, and the
5 department of state shall use such information solely for the purposes
6 of enforcing sections one hundred seventy-two-e and one hundred seven-
7 ty-two-f of this article and shall keep the information confidential
8 except as provided in sections one hundred seventy-two-e and one hundred
9 seventy-two-f of this article.
10 § 3. This act shall take effect immediately; provided that section two
11 of this act shall take effect on the same date and in the same manner as
12 section 1 of part UU of chapter 55 of the laws of 2020, takes effect.