Relates to solicitation used by or on behalf of any charitable organization; requires a statement setting forth percentage of administrative expenses

4 Co-sponsors

• David Carlucci
• John A. DeFrancisco
• Kathleen A. Marchione
• Jack M. Martins

BILL NUMBER:S3797

Title of bill

An act to amend the executive law, in relation to solicitation used by or on behalf of any charitable organization

Summary of provisions

SECTION 1 amends subdivisions 2 and 3 of section 174-b of the Executive Law to provide:

(1)that any solicitation by or on behalf of any charitable organization shall include a statement setting forth the percentage of such charitable organizations funds allocated to administrative expenses during the past two fiscal years. Administrative expenses are defined for the purposes of this subdivision as any direct contribution that does not go directly to the public or individual persons a charitable organization serves or assists.

(2) That any solicitation made by a professional fundraiser or professional solicitor by any means on behalf of a charitable organization required to be registered pursuant to Article 7-A of the Executive Law shall include a statement of the percentage of funds raised by the professional fundraiser of professional solicitor that was forwarded to the charitable organizations on behalf it solicited during the past two fiscal years.

(3) That the Attorney General may prosecute an action for violation of these subdivision and provides for fines.

SECTION 2 provides that this act shall take effect on the ninetieth day after it shall have become law and shall apply for all solicitation used by or on behalf of any charitable organization on or after such effective date.

Purpose and justification

New Yorkers collectively receive millions of solicitations for donations to charities each year. Although the State, through one of its websites, provides information as to how much of each donated dollar is actually used to directly benefit the needy, this is not useful when a person is being solicited over the phone and an immediate response is being requested, or for those who do not have access to the internet. There have been articles written over the years discussing how little some professional fundraisers actually give to the charities for whom they solicit, and Attorney General Schneiderman recently issued a report that shows that some charities and professional fundraisers use virtually all the funds they raise for their own overhead and benefit.

This bill would require that fundraisers disclose in their solicitation, whether in writing, by electronic mail or by phone, the percentage of funds that they have actually passed on to the objects of their charity over the past two years. With this information, New Yorkers can make a better informed decision as to whether they should donate in response to the solicitation they are receiving.

Existing law

Article 7-A of the Executive Law regulates the charitable solicitation in the State.

Prior legislative history

New bill

Fiscal implications

None.

Effective date

This act shall take effect on the ninetieth day after it shall become Law and shall apply for all solicitation used by or on behalf of any charitable organization on or after such effective date.