What's happening
This bill requires employees and fundraisers of charitable organizations in New York to complete attorney general-approved training in fundraising law and ethics.
Why it matters
Strengthens accountability in fundraising. By mandating training in the law and ethics of fundraising, the bill aims to reduce incidents of fraud, misrepresentation, and unethical solicitation, increasing public trust in charitable organizations and professional fundraisers.
Standardizes ethical practices across the sector. The training must cover prohibited activities (like false statements and illegal contracting), ensuring a consistent level of knowledge and ethical standards among those responsible for fundraising and supervision, regardless of the organization’s size or type.
Expands oversight and enforcement. The attorney general will actively monitor compliance with these training requirements, increasing regulatory oversight and potentially leading to greater enforcement actions against organizations or individuals who do not comply.
Encourages ongoing professional development. The requirement to complete training within twelve months of registration and repeat it every five years promotes continuous education, helping staff and fundraisers stay updated on evolving legal and ethical expectations in charitable fundraising.
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Who cares
Headline styles
Train Charity Fundraisers
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Referred 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.
Train Charity Fundraisers on Ethics
In Assembly Committee · Governmental Operations · Sponsor Sandy Galef
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3213
2019-2020 Regular Sessions
IN SENATE
February 4, 2019
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
AN ACT to amend the executive law, in relation to requiring certain employees of charitable organizations to complete a course of instruction in the law and ethics of fundraising
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 171-a of the executive law is amended by adding a new subdivision 13 to read as follows:
13. "Acceptable course." Any classroom training or distance learning course of instruction approved by the attorney general, in relation to the law and ethics of fundraising and philanthropy in a manner that shall include, but not be limited to, prohibited activities pursuant to section one hundred seventy-two of this article, such as false statements, fraudulent or illegal acts, false advertising, false solicitation, and illegal contracting. Universities and colleges statewide, and professional trade associations that establish professional standards and provide training and resources for individuals engaging in professional fundraising, may offer an acceptable course and shall provide documentation of completion to those who complete the course.
§ 2. Section 172 of the executive law is amended by adding a new subdivision 4-a to read as follows:
4-a. Any charitable organization, including any charitable organization required to be registered pursuant to article eight of the estates, powers and trusts law, required to register pursuant to this section, and seventy-five percent of whose employees are responsible for the hiring, training, or supervision of employees engaged in the fundraising activities of the organization, group association, partnership or corporation, shall require any individual or individuals under which it intends to solicit contributions named in accordance with paragraph (a) of subdivision one of this section to complete an acceptable course of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06124-01-9
S. 3213 2
instruction in the law and ethics of fundraising approved by the attorney general within twelve months of completing such registration and at least once in any five-year period of registration thereafter. Such individuals shall provide documentation of such completion at the request of the attorney general. The attorney general shall monitor compliance with such mandated training and reporting on an ongoing basis.
§ 3. Section 173 of the executive law is amended by adding a new subdivision 1-a to read as follows:
1-a. Any professional fundraiser or fundraising counsel required to register pursuant to this section, including an organization, group, association, partnership, corporation, or any combination thereof required to register pursuant to this section, and seventy-five percent of whose employees are responsible for the hiring, training, or supervision of employees engaged in the fundraising activities of the organization, group association, partnership or corporation, shall require any individual or individuals under which it intends to solicit contributions to complete an acceptable course of instruction in the law and ethics of fundraising approved by the attorney general within twelve months of completing such registration and at least once in any fiveyear period of registration thereafter. Such individuals or entities shall verify on their re-registration form that they have completed such course and shall provide documentation of such completion at the request of the attorney general. The attorney general shall monitor compliance with such mandated training and reporting on an ongoing basis.
§ 4. Section 173-b of the executive law is amended by adding a new subdivision 1-a to read as follows:
1-a. Any professional fundraiser, professional solicitor, or fundraising counsel which is an organization, group, association, partnership, corporation, or any combination thereof required to register pursuant to this section, and seventy-five percent of whose employees are responsible for the hiring, training, or supervision of employees engaged in the fundraising activities of the organization, group association, partnership or corporation, shall require any individual or individuals under which it intends to solicit contributions to complete an acceptable course of instruction in the law and ethics of fundraising approved by the attorney general within twelve months of completing such registration and at least once in any five-year period of registration thereafter. The attorney general shall monitor compliance with such mandated training and reporting on an ongoing basis.
§ 5. This act shall take effect on the one hundred twentieth day after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before 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 requiring certain employees of charitable organizations to complete a course of instruc- tion in the law and ethics of fundraising
Purpose
This legislation requires an ethics course requirement for professional fundraisers.
Summary of specific provisions
This legislation amends the Executive Law, which requires ethics train- ing for professional fundraisers, professional solicitors, and fundrais- ing counsel required to register under Article 7-A of the Executive Law and Section 8 of the Estates, Powers, and Trusts Law.
Impacted parties will be required to complete training in the law and ethics of fundraising within twelve months of completing registration and at least once in any five-year period of registration thereafter.
The law and ethics course of instruction must be approved by the attor- ney general, in a manner which addresses the prohibited activities noted in Section 172 of the Executive Law, such as false statements, fraudu- lent or illegal acts, false advertising, false solicitation, and illegal contracting.
Universities and colleges statewide and professional trade associations that provide such training to individuals engaging in professional fundraising may offer such course through classroom training or distance learning per New York State Education Department regulations.
The attorney general shall monitor compliance with such mandated train- ing and reporting on an ongoing basis.
Justification
The proposed legislation models The New York State Lobbying Act 1-d(h), which requires the Joint Commission on Public Ethics to "provide an online ethics training course for individuals registered as lobbyists" and such registered individuals are required to "complete such training course at least once in any three-year period during which he or she is registered as a lobbyist" in alignment with state efforts to restore public trust.
Public concern regarding lack of transparency and impropriety surround- ing non-profits and charitable foundations are foundational issues upon which fundraising ethics legislation has been proposed for enactment. According to the Urban Institute, National Center for Charitable Statis- tics, New York ranked only behind California in total charitable' contributions in 2013, with more than $17.2 billion in reported donations. New Yorkers have consistently supported causes which are broad in both range and scope, answering needs in education, health, the arts, housing, the environment and other areas locally, nationally, and globally. Furthermore, the New York Bureau of Labor Statistics reported in 2012 that not-for-profit jobs make up over 18 percent of New York's private sector employment, with more than 1.25 million worked on nonpro- fit payrolls paid more than $57 billion in wages.
In light of recent New York State investigations and settlements related to unethical and illegal fundraising activity, the proposed fundraising legislation mandating ethics training for registered professional fundraisers, professional solicitors, fundraising counsel, and organiza- tions and charities of a similar nature aligns with New York's desire to restore public trust, as stories of abusing charities have emerged, while also enhancing governance and oversight of nonprofits.
Legislative history
Senate Bill 6232 of 2017-18.
Fiscal implications
Minimal.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.