The Disclosure Digest: March 25, 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 Mississippi bill that would bar public agencies in the state from requiring 501(c) nonprofits to disclose donor information.
State spotlight: Mississippi legislature passes bill barring public agencies from requiring 501(c) groups to disclose donor information
On March 19, the Mississippi House of Representatives voted 73-45 to approve HB1205, a bill that would bar public agencies from requiring any entities organized under section 501(c) of the Internal Revenue Code to disclose to the public information about their donors. The Mississippi Senate voted 32-18 to approve the measure on March 13. The House vote split along party lines, with Republicans voting in favor of the bill and Democrats voting against. In the Senate, the split was similar, with all but one Democrat voting against the bill and Republicans voting in favor of it.
- What comes next? Having cleared both chambers of the state legislature, the bill is awaiting action from Governor Phil Bryant (R).
- What are the responses?
- Dr. Jameson Taylor, vice president for policy of the Mississippi Center for Public Policy, said the following in support of the bill: "The people of Mississippi support donor privacy because we realize, perhaps more than most, how necessary it is to protect the right of everyone, regardless of race, creed or political affiliation, to support the causes they individually believe in without fear of discrimination and retaliation."
- The editorial board of The Dispatch wrote the following in opposition to the bill: "Our position is simple: Voters have a right to know who is funding our candidates' campaigns. If a candidate is getting money from Planned Parenthood or Americans for Prosperity, that says something about that candidate's positions. It also informs us if a candidate is beholden to interests outside the state or if his campaign is funded by his fellow Mississippians.
- Federal legal context: Section 501(c) of the Internal Revenue Code outlines 29 types of tax-exempt nonprofit organizations. Included among these are 501(c)(3) groups, which are charitable, religious, and educational organizations, and 501(c)(4) groups, which are social welfare organizations. 501(c)(3) groups cannot engage in any political activity on behalf of, or in opposition to, any candidate for elective office. By contrast, 501(c)(4) groups can participate in political activities in support of, or in opposition to, candidates for office, although 501(c)(4) entities cannot make direct donations to candidates or their committees.
What we're reading
- Institute for Free Speech, "A Survey of Campaign Finance and Lobbying Laws in the 50 States, District of Columbia, New York City, and Seattle," March 19, 2019
- East Oregonian, "Legislature weighs campaign finance reform bills," March 18, 2019
- The Meridian Star, "Bill Crawford: Bryant should veto dark money bill," March 24, 2019
- Mississippi Center for Public Policy, "Voters Support Donor Privacy Bill On Governor’s Desk," March 25, 2019
The big picture
Number of relevant bills by state: We're currently tracking 71 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.
- Colorado SB068: This bill would expand the definition of an electioneering communication for the purposes of campaign finance disclosure.
- Passed the legislature and sent to the governor March 22.
- Connecticut SB00642: This bill would define electioneering communications created on social media platforms as contributions under the state's campaign finance laws. It would also require social media companies to report to the State Elections Enforcement Commission any electioneering communications they did not create but published.
- Government Administration and Elections Committee hearing March 25.
- Idaho S1113: This bill would expand existing disclosure requirements to local elections and campaigns.
- Amended version filed for second reading in the House.
- 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.
- Enrolled and sent to the governor March 22.
- Montana SB134: This bill would revise the definitions of contributions, expenditures, and independent expenditures as they apply to electioneering communications.
- House State Administration Committee hearing March 21.
- New Hampshire SB105: This bill would establish disclosure requirements for certain contributions made to inaugural committees.
- Introduced in the House and referred to Election Law Committee March 21.
- New Hampshire SB156: This bill would require political contributions from limited liability companies be allocated to individual members in order to determine whether individuals have exceeded contribution limits.
- Reported favorably by Election Law and Municipal Affairs Committee March 20.
- North Dakota HB1037: This bill would reenact previously rescinded disclosure requirements for contributions made to ballot measure campaigns.
- Signed into law March 20.
- Utah HB0131: This bill would require political issues committees to disclose certain contributions within three days of receipt.
- Signed into law March 22.
- Utah HB0319: This bill would establish disclosure requirements for entities spending money on ballot proposition advertisements.
- Signed into law March 22.
- Washington HB1375: This bill would extend the state's campaign contribution regulations to candidates for port districts.
- Referred to Senate Rules Committee for second reading March 21.
- Washington HB1379: This bill would amend a state law requiring entities producing political advertisements publicly disclose their top five donors.
- Senate State Government, Tribal Relations, and Elections Committee hearing March 20.
- West Virginia SB622: This bill would make general revisions to the state's campaign finance disclosure laws.
- Sent to the governor March 22.
See also
| |||||||
