The Disclosure Digest: November 2020
Explore the legislation, litigation, and advocacy surrounding nonprofit donor disclosure with The Disclosure Digest, a Ballotpedia newsletter.
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 to the public information about donors violates privacy rights and can inhibit charitable activity.
Alaska approves ballot measure establishing new donor disclosure requirements
On Nov. 3, voters in Alaska approved Ballot Measure 2, the "Alaska Top-Four Ranked-Choice Voting and Campaign Finance Laws Initiative." Unofficial returns show the measure passed 50.55% to 49.45%.
About Ballot Measure 2
Ballot Measure 2 modifies Section 15.13.040 of the Alaska Statutes, which establishes campaign finance reporting requirements for non-group entities, which state law defines as nonprofit groups that seek to influence the outcomes of elections. The modified statute will require non-group entities to disclose for all contributions exceeding $2,000 in total per year "the true source of such contributions and all intermediaries, if any, who transferred such funds."
Alaska is one of 33 states that require groups making independent expenditures to disclose identifying donor information in campaign finance reports.
Ballot Measure 2 also provides for top-four primary elections for state executive, state legislative, and congressional offices. It also establishes ranked-choice voting in general elections for state and federal offices, including the presidency.
What were the arguments for and against?
Alaskans for Better Elections led the campaign in support of Ballot Measure 2. Former Rep. Jason Grenn (I-22) was the campaign's chairman. Bruce Botelho (D), the former mayor of Juneau, and Bonnie Jack (R) were campaign co-chairs. The campaign's website said:
| “ | [Ballot Measure 2] requires additional campaign finance reporting for groups and individuals who raise and spend unlimited amounts of 'dark money' in Alaska’s campaigns. Under the proposed reforms, these groups would have to disclose the true sources behind those donations in real-time. Politicians would no longer be able to receive unlimited secret money from wealthy special interests who wish to hide their identities and motives. Candidates can still accept donations, but they’ll have to tell voters where the funds came from so voters can judge for themselves where the candidates loyalties lie.[1] | ” |
Defend Alaska Elections opposed the measure. John Sturgeon was the group's chair. In an op-ed for Must Read Alaska, the group said:
| “ | The truth is that Kathryn Murdoch [a supporter of the measure] and her highly paid consultants in Alaska could care less about dark money. How could they when every paycheck they cash is funded entirely by dark money? … Not only does Murdoch not care about stopping dark money, she is openly lying to us. All throughout the campaign you’ve heard her shills claim that they disclose their donors on their website. This is false. The campaign’s website simply lists publicly available campaign finance reports that provide no details whatsoever on the 'true source' of donations behind Ballot Measure 2.[1] | ” |
What we've been reading
- National Review, "Stunning Findings on Campaign-Finance Law," Nov. 21, 2020
- The Fulcrum, "New Mexico warning: Modest sunshine still leaves campaign cash in shadow," Nov. 18, 2020
- Center for Responsive Politics, "‘Dark money’ groups find new ways to hide donors in 2020 election," Oct. 30, 2020
The big picture
Number of relevant bills by state: We're currently tracking 53 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 activity
- Ohio SB349: This bill would require any entity making political expenditures to report identifying information about those who make donations explicitly for political purposes and those whose donations are directed toward the entity's general fund (if the general fund is used to make political expenditures).
- Bipartisan sponsorship.
- Senate Government Oversight and Reform Committee hearing scheduled Nov. 18.
See also
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