N.Y. Executive Law § 172-e: Disclosure of certain donations by charitable non-profit entities

§ 172-e. Disclosure of certain donations by charitable non-profit

entities. 1. Definitions. For the purposes of this section:

(a) "Covered entity" shall mean any corporation or entity that is

qualified as an exempt organization or entity by the United States

Department of the Treasury under I.R.C. 501(c)(3) that is required to

report to the department of law pursuant to this section.

(b) "In-kind donation" shall mean donations of staff, staff time,

personnel or any other human resources, offices or office supplies,

except that an in-kind donation shall not include an in-kind donation

made by a person or entity in the course of an activity that is

substantially related to accomplishing the covered entity's tax exempt

purposes where the in-kind donator is offering or providing goods or

services for substantially less than fair market value to individuals,

corporations or groups, and those goods or services are actually

purchased or consumed by wholly unaffiliated individuals, corporations

or groups for no charge or substantially less than fair market value,

and may include, but is not limited to, pro bono legal services and

other forms of technical assistance.

(c) "Donation" shall mean any contribution, including a gift, loan,

in-kind donation, advance or deposit of money or anything of value.

(d) "Recipient entity" shall mean any corporation or entity that is

qualified as an exempt organization or entity by the United States

Department of the Treasury under I.R.C. 501(c)(4) that is required to

file a source of funding report with the commission on ethics and

lobbying in government pursuant to sections one-h and one-j of the

legislative law.

(e) "Reporting period" shall mean the six month period within a

calendar year starting January first and ending June thirtieth or the

six month period within a calendar year starting July first and ending

December thirty-first.

2. Funding disclosure reports to be filed by covered entities. (a) Any

covered entity that makes an in-kind donation in excess of ten thousand

dollars to a recipient entity during a relevant reporting period shall

file a funding disclosure report with the department of state. The

funding disclosure report shall include:

(i) the name and address of the covered entity that made the in-kind

donation;

(ii) the name and address of the recipient entity that received or

benefitted from the in-kind donation;

(iii) the names of any persons who exert operational or managerial

control over the covered entity. The disclosures required by this

paragraph shall include the name of at least one natural person;

(iv) the date such donation was made by the covered entity; and

(v) a description of the in-kind donation, including the charitable

purpose advanced by such donation, if any, and any restrictions on the

use of such donation by the recipient entity.

(b) The covered entity shall file a funding disclosure report with the

department of state within thirty days of the close of a reporting

period.

3. Public disclosure of funding disclosure reports. The department of

state shall promulgate any regulations necessary to implement these

requirements and shall publish such reports on the department's website

when authorized pursuant to subdivision two of this section; provided

however that the secretary of state, or his or her designee, may

determine that disclosure of all or a portion of the in-kind donations

to the covered entity and financial assistance provided by any covered

entity to one or more recipient entities, shall not be made public if,

based upon a review of the relevant facts presented by the covered

entity, such disclosure may cause harm, threats, harassment, or

reprisals to the source of the donation or to individuals or property

affiliated with the source of the donation. The covered entity may

appeal the secretary's determination and such appeal shall be heard by a

judicial hearing officer who is independent and not affiliated with or

employed by the department of state. The total amount of in-kind

donations to the covered entity and financial assistance provided by any

covered entity to one or more recipient entities that are the subject of

such appeal shall not be made public pending final judgment on appeal.

4. If a covered entity's or recipient entity's annual report filed

pursuant to section one hundred seventy-two-b of this article does not

include a completed Internal Revenue Service Form 990 schedule B and

that covered entity makes, or that recipient entity receives, qualifying

donations pursuant to subdivision two of this section, that entity shall

in addition to filing a disclosure with the department of law, also file

with the department of state a complete Internal Revenue Service Form

990 Schedule B, regardless of whether such form is submitted or required

to be submitted to the Internal Revenue Service.