What's happening
This bill updates requirements for charitable solicitations, mandating new disclosures including information on how to access financial reports and contact the attorney general's office.
Why it matters
Empowers donors and the public with easier access to financial data. by making it mandatory for charities to disclose the website and phone number of the NY Attorney General’s office, allowing individuals to verify an organization’s legitimacy and review financial reports before donating.
Increases transparency around fundraising practices. by requiring clear identification of professional fundraisers and solicitors (including whether they’re paid), which helps potential donors understand who is benefiting from their contributions and reduces the risk of misleading appeals.
Clarifies how donations—specifically endowment gifts—may be spent. by obligating institutions to inform donors about the rules under which endowment funds can be used, which can prevent misunderstandings and ensure donors’ intentions are respected.
Strengthens consumer protection and regulatory oversight. by standardizing the information that must be provided in all charitable solicitations, making it easier for the Attorney General’s office to monitor compliance and for the public to hold organizations accountable.
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Who cares
Headline styles
Require More Charity Transparency
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 61
No co-sponsors yet.
History
- Substituted by A2688B
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1099
- Print number 3780b
- Amend and recommit to finance
- Referred to finance
- Print number 3780a
- Amend and recommit to finance
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Charity Solicitations Must Disclose Info
Signed by Governor · Sponsor Phil Steck
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3780--B
2017-2018 Regular Sessions
IN SENATE
January 27, 2017
Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Finance in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the executive law, in relation to solicitation used by or on behalf of any charitable organization
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivisions 1, 2 and 3 of section 174-b of the executive law, subdivisions 1 and 3 as amended by chapter 43 of the laws of 2002 and subdivision 2 as amended by chapter 490 of the laws of 2010, are amended to read as follows:
1. Any solicitation, by any means, including but not limited to oral solicitation, by or on behalf of a registered charitable organization which is required to file financial reports pursuant to this article and has filed all such reports, shall include therein a statement that upon request, a person may obtain from the organization or from the charities registry on the attorney [general] general's website, a copy of the last financial report filed by the organization with the attorney general. Such statement shall specify the address of the organization and the address of the attorney general, to which such request should be addressed and in the case of a written solicitation, must be placed conspicuously in the material with print no smaller than ten point bold face type or, alternatively, no smaller than the size print used for the most number of words in the statements. Provided, however, such statement need not be made where the space for a printed advertisement or promotional time in any media has been donated or made available to the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07678-05-8
S. 3780--B 2
charitable organization at no cost and such space or time does not reasonably permit inclusion of such statement.
2. Any solicitation used by or on behalf of any charitable organization shall [provide] include:
(a) a clear description of the programs and activities for which it has requested and has expended or will expend contributions or shall include therein a statement that, upon request, a person may obtain from the organization such a description; and
(b) a statement identifying the website and telephone number of the New York state office of the attorney general where an individual can receive information on charitable organizations.
(c) If the solicitation is by an institution subject to article five-A of the not-for-profit corporation law, and is for an endowment fund, the solicitation must include a statement that, unless otherwise restricted by the gift instrument pursuant to paragraph (b) of section five hundred fifty-three of the not-for-profit corporation law, the institution may expend so much of an endowment fund as it deems prudent after considering the factors set forth in paragraph (a) of section five hundred fifty-three of the not-for-profit corporation law.
3. In addition to any other disclosure required by law, any solicitation by any means by a professional fund raiser or professional solicitor on behalf of a charitable organization required to be registered pursuant to this article shall clearly and unambiguously disclose:
(a) the name of the professional fund raiser as on file with the attorney general and that the solicitation is being conducted by a professional fund raiser;
(b) the name of the individual professional solicitor as on file with the attorney general and that the individual is receiving compensation for conducting the solicitation; and
(c) a statement identifying the website and telephone number of the office of the attorney general where an individual can receive information on charitable organizations.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law and shall apply to all solicitation used by or on behalf of any charitable organization on and after such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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 1, 2 and 3 of section 174-b of the Exec- utive Law to provide:
1. Updates subdivision 1 to specifically identify the charities registry on the Attorney General's website.
2. Adds new language to subdivision 2 and 3 to provide, in addition to existing requirements in these subdivisions that any solicitation by or on behalf of any charitable organization shall include a statement iden- tifying the website and telephone number of the New York State Office of the Attorney General where an individual can receive information on charitable organizations; and that any solicitation made by a profes- sional fundraiser or professional solicitor by any means on behalf of a charitable organization required to be registered pursuant to Article 7A of the Executive Law shall include a statement identifying the website and telephone number of the New York State Office of the Attorney Gener- al where an individual can receive information on charitable organiza- tions.
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, many, and perhaps most, New Yorkers are not aware that they can find this information. There have been arti- cles 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 advise potential donors of the existence of the Attorney General's website, and also provide a tele- phone number for the Charities Bureau of the Attorney General's Office if they do not have access to the internet. With this information, New Yorkers have a better opportunity to make an 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
2013-14 - S.3797 - FINANCE 2015-16 - S.3385/A.7213 - RULES/FINANCE/Gov't Ups
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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.