The Disclosure Digest: March 18, 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 a New Jersey bill that would, if enacted, expand donor disclosure requirements for 501(c)(4) and 527 groups.
State spotlight: New Jersey considers expanded donor disclosure requirements for 501(c)(4) and 527 groups
The New Jersey State Assembly Appropriations Committee is expected to consider S1500 during a hearing scheduled for March 18. The bill would require 501(c)(4)s, super PACs, and other entities to disclose donors who contribute $10,000 or more.
- S1500 would define an independent expenditure committee as any person or group of persons organized under sections 501(c)(4) or 527 of the Internal Revenue Code spending $3,000 or more annually to influence or provide political information about any of the following:
- "the outcome of any election or the nomination, election, or defeat of any person to any state or local elective public office"
- "the passage or defeat of any public question, legislation, or regulation"
- Independent expenditure committees would be required to disclose all expenditures exceeding $3,000. In addition, these committees would be required to disclose the identities of donors contributing $10,000 or more.
- The bill would apply retroactively to Jan. 31, 2018.
- What comes next? The New Jersey Senate unanimously approved the bill Feb. 21. The Assembly must pass the bill, and the governor must sign it, before it becomes law.
- What are the responses?
- Sen. Troy Singleton (D), the bill's primary sponsor, said, "Bringing greater transparency through more disclosure will help empower voters. They deserve more information about the interests working to influence the legislative, regulatory and political processes so they can make informed decisions. Full disclosure will improve the process of government and enhance public confidence."
- In an op-ed for The Star-Ledger, David Keating, president of the Institute for Free Speech, and Amol Sinha, executive director of the New Jersey ACLU, wrote: "The way to counter corruption and check the influence of entrenched power is not to pry open the donor files of organizations, but to increase participation in democracy – including by protecting the identities of people involved with advocacy organizations. Rather than discourage giving to nonprofits, the state should consider making it easier for New Jerseyans to support the causes of their choice."
What we're reading
- Center for Responsive Politics, "Shining a light on recent transparency reforms — did they work?" March 15, 2019
- Arizona Republic, "9 out of 10 Tempe voters approved a 'dark-money' ban, but is it illegal? Attorney General to investigate," March 15, 2019
- ABC Fox Montana, "New Jersey joins Gov. Bullock’s dark money lawsuit against IRS," March 14, 2019
The big picture
Number of relevant bills by state: We're currently tracking 68 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.
- Government Administration and Elections Committee hearing March 13.
- Georgia SB213: This bill would adjust contribution thresholds triggering disclosure requirements
- House Governmental Affairs Election Subcommittee hearing March 13. Senate approved the bill March 7.
- Idaho S1183: This bill would alter the definitions of and disclosure requirements for electioneering communications and independent expenditures.
- Referred to State Affairs Committee March 12.
- Maryland SB1020: This bill would alter disclosure requirements for out-of-state political committees.
- Education, Health, and Environmental Affairs Committee hearing March 14.
- Michigan HB4341: This bill would require mailings referencing a candidate, election, or ballot question and funded by a separate segregated fund created by a connected organization include a disclaimer identifying the fund.
- Referred to Elections and Ethics Committee March 13.
- Mississippi HB1205: This bill would prohibit public agencies from requiring or releasing certain personal information from entities organized under Section 501(c) of the Internal Revenue Code.
- Senate returned bill to House for concurrence March 15.
- Missouri HB913: This bill would establish disclosure requirements for the funding of inaugural activities.
- General Laws Committee hearing March 13.
- Nebraska LB210: This bill would revise reporting requirements for independent expenditures and establish disclosure requirements for electioneering communications.
- Government, Military, and Veterans Affairs Committee hearing March 13.
- New Jersey S1500: This bill would require disclosure of donors to 501(c)(4)s, super PACs, and other similar entities who contribute $10,000 or more.
- Assembly Appropriations Committee hearing March 18.
- North Dakota HB1037: This bill would re-enact previously rescinded disclosure requirements for contributions made to ballot measure campaigns.
- Sent to governor March 15.
- Rhode Island H5495: This bill would extend disclosure requirements to nonprofit entities providing transportation or other amenities to candidates for office.
- Judiciary Committee hearing March 13.
- Utah HB0319: This bill would establish disclosure requirements for entities spending money on ballot proposition advertisements.
- Senate approved the bill March 14. House approved Feb. 28.
See also
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