The Disclosure Digest: April 8, 2019
Explore the laws governing nonprofit donor disclosure with Ballotpedia. Each weekly edition of The Disclosure Digest will highlight noteworthy legislation, pending litigation, and major activities by advocacy groups.
Nonprofit organizations do not distribute surplus revenues as profits or dividends to shareholders. Instead, nonprofits use revenues for self-preservation or expansion. Tax-exempt nonprofits are regulated under Section 501 of the Internal Revenue Code. States may subject nonprofits to additional regulations beyond those imposed by the federal government. Under federal law, nonprofits are generally not required to disclose to the public information about their donors. State laws, however, may require such disclosure. Some say expanded donor disclosure provisions minimize the potential for fraud and establish public accountability. Meanwhile, others say that disclosing information about donors violates privacy rights and can inhibit charitable activity.
This week, we shine a spotlight on New Mexico, which last week enacted a law establishing new donor disclosure requirements for entities making independent political expenditures.
State spotlight: New Mexico enacts new donor disclosure requirements for independent expenditures
On April 4, 2019, New Mexico Governor Michelle Lujan Grisham (D) signed SB3, enacting a series of changes to the state's campaign finance laws. In particular, SB 3 establishes new donor disclosure requirements for entities making independent political expenditures.
- What does the bill do? As enacted, SB3 requires any entity meeting the following spending thresholds to file a disclosure report with the secretary of state:
- Entities whose independent expenditures exceed $1,000 for district-level elections or $3,000 for statewide elections during an election cycle must report to the secretary of state within three days of meeting these thresholds.
- Entities whose independent expenditures exceed $3,000 and are made within seven days of an election must report to the secretary of state within 24 hours of making the expenditures.
- Contents of the disclosures:
- Name and address of the entity making the expenditure
- Name and address of the entity to whom the expenditure was made and the amount, date, and purpose of the expenditure
- Names and addresses of contributors under the following conditions:
- If a group's independent expenditures total $3,000 or less in district-level elections or $9,000 or less in statewide contests, it must disclose all contributors who gave more than $200 total to the group in that election cycle.
- For groups whose independent expenditures exceed these thresholds, the following disclosure requirements apply:
- Groups making expenditures from funds designated solely for independent expenditures: names, addresses, and amounts of all contributions exceeding $200 total per election cycle
- Groups making expenditures from funds not designated solely for independent expenditures: names, addresses, and amounts of all contributions exceeding $5,000 total per election cycle
- Contributors who requested in writing that their donations not be used for political expenditures are exempt from disclosure requirements.
- Legal context: An independent expenditure is money spent on political advertising in support of, or in opposition to, a particular candidate for office. Groups separate from candidate and political party committees may make independent expenditures, but they cannot coordinate those expenditures with candidate or political party committees. Nonprofit groups organized under Section 501(c)(4) of the Internal Revenue Code, corporations, and labor unions are among the entities authorized under federal law to make independent expenditures.
What we're reading
- Casper Star-Tribune, "Wyoming’s campaign finance reforms leave several holes for dark money influence," April 5, 2019
- The Iowa Standard, "Donor privacy bill dies in Iowa House," April 4, 2019
- The Daily Signal, "Donors to Charities Can’t Be Exposed Under New Mississippi Law," April 3, 2019
The big picture
Number of relevant bills by state: We're currently tracking 73 pieces of legislation dealing with donor disclosure. On the map below, a darker shade of green indicates a greater number of relevant bills. Click here for a complete list of all the bills we're tracking.
Number of relevant bills by current legislative status
Number of relevant bills by partisan status of sponsor(s)
Recent legislative actions
Below is a complete list of legislative actions taken on relevant bills in the past week. Bills are listed in alphabetical order, first by state then by bill number. Know of any legislation we're missing? Please email us so we can include it on our tracking list.
- Connecticut HB07329: This bill would expand disclosure requirements for entities making independent expenditures.
- Filed with Legislative Commissioners' Office April 2.
- Connecticut SB00269: This bill would narrow the definition of a contribution as it applies to state legislative candidates.
- Filed with Legislative Commissioners' Office April 2.
- Idaho S1113: This bill would expand existing disclosure requirements to local elections and campaigns.
- Enacted April 2.
- Iowa HF697: This bill would prohibit public agencies from requiring 501(c) entities to furnish them with personal information about donors.
- Referred to Judiciary Committee April 4.
- Montana SB134: This bill would revise the definitions of contributions, expenditures, and independent expenditures as they apply to electioneering communications.
- Conference committee appointed April 5.
- New Mexico SB3: This bill would expand disclosure requirements for groups making independent expenditures for political purposes.
- Enacted April 4.
- Virginia HB1719: This bill would extend the provisions of the state's Campaign Finance Disclosure Act to candidates for local office who accept contributions or make expenditures in excess of $25,000.
- Enacted April 3.
- Washington HB1379: This bill would amend a state law requiring entities producing political advertisements publicly disclose their top five donors.
- Passed to Senate Rules Committee for second reading April 2.
See also
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