Provides for the waiver of annual fees for professional fundraisers who complete a course of instruction in the law of ethics in fundraising

1 Co-sponsor

• Michael H. Ranzenhofer

BILL NUMBER:S2156A

Title of bill

An act to amend the executive law and the estates, powers and trusts law, in relation to providing for the issuance of a certificate of ethics course completion to professional fundraisers and charitable organizations who complete a course of instruction in the law and ethics of fundraising; and providing for the repeal of certain provisions upon expiration thereof

Purpose

This bill establishes a five-year pilot program that will provide for a onetime annual registration fee waiver for professional fundraisers who complete a course of instruction in the law and ethics of fundraising, for charitable organizations whose professional fundraiser or in-house fundraising supervisor complete a course of instruction in the law and ethics of fundraising, and for charitable organizations that have a key employee who has completed a course in the law and ethics of charitable fundraising or the law and ethics of not-for-profit governance.

Summary of provisions

Section one amends the Executive Law to add a new section 178 that provides for a onetime waiver of a registration fee waiver for professional fundraisers who complete a course of instruction in the law and ethics of fundraising for the year following the year in which they completed the course. Section one also provides for an annual fee waiver for organizations whose in-house fundraising supervisors or key employees take an ethics course. In the case of "key employees", an acceptable course would be either the law and ethics of fundraising or the law and ethics of corporate governance. The bill section limits a person or organization to one fee waiver during any three calendar year period.

Section one also provides that the education department, in consultation with the attorney general, shall determine whether a course is acceptable. It also provides that universities and colleges statewide, and professional trade associations would be permitted to offer any such course through classroom training or by distance learning.

Section two provides for waivers of a charitable organization's Estates, Powers and Trusts Law annual fee in the same manner as the waiver of the organization's Executive Law annual fee as provided for in section one.

Section three requires the Department of Education to develop rules that would ensure proper attendance by students of acceptable courses and proper attendance recording procedures by organizations offering such courses.

Section four provides that the attorney general shall issue a report to the governor and the Legislature within six years that describes participation in the pilot program, analyzes of the efficacy of the act in promoting ethics in charitable fundraising or governance, describes acceptable ethics curricula, assesses the availability of, and satisfaction with, acceptable courses, and makes a recommendations

with respect to developing legislation mandating the completion of such courses.

Justification

There are approximately 1.8 million charitable organizations in existence today that raise between $225 and $255 billion per year. Unfortunately, many ethical problems exposed in Corporate America are now spilling over into the non-profit sector. Recent scandals point out that there is need for transparency and maximum accountability in the profession.

This bill will provide valuable insight into how to best promote adherence to ethical standards within charitable organizations and amongst fundraising professionals. It does so specifically by offering a financial incentive to study ethics in charitable fundraising and governance.

Legislative history

This is a new bill.

Fiscal implications

Minimal.

Effective date

This act shall take effect on April 1, 2015 and sections one through three shall be deemed repealed on March 31, 2021.