NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8828
SPONSOR: D'Urso TITLE OF BILL:
An act to amend the executive law, in relation to statements by chari-
Requires charities to report the percentage of their spending that goes
directly to their stated purpose on all solicitations.
SUMMARY OF PROVISIONS:
Section 1. amends subdivision 2 of section 174-b of the executive law to
require all charities to state what percentage of their proceeds are
applied directly to the charity's stated mission.
Section 2 is the enacting clause.
When individuals and organizations give to charities, it is fair to say
that they usually expect their money will be put toward the cause stat-
ed. Of course, every charity has overhead costs that take up some
portion of their funds, but unusually high proportions of spending dedi-
cated to non-charitable purposes can be a ready indicator of mismanage-
ment or even fraud. Requiring transparent disclosure of this information
will benefit donors, philanthropists and charities alike.
This act shall take effect immediately after it shall have become law.
STATE OF NEW YORK
2019-2020 Regular Sessions
November 25, 2019
Introduced by M. of A. D'URSO -- read once and referred to the Committee
on Governmental Operations
AN ACT to amend the executive law, in relation to statements by chari-
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 2 of section 174-b of the executive law, as
2 amended by chapter 373 of the laws of 2018, is amended to read as
4 2. Any solicitation used by or on behalf of any charitable organiza-
5 tion shall include:
6 (a) a clear description of the programs and activities for which it
7 has requested and has expended or will expend contributions or shall
8 include therein a statement that, upon request, a person may obtain from
9 the organization such a description; [and]
10 (b) a statement identifying the website and telephone number of the
11 New York state office of the attorney general where an individual can
12 receive information on charitable organizations; and
13 (c) a statement clearly stating what percentage of the charity's
14 proceeds are applied directly to such charity's stated mission.
15 [(c)] (d) If the solicitation is by an institution subject to article
16 five-A of the not-for-profit corporation law, and is for an endowment
17 fund, the solicitation must include a statement that, unless otherwise
18 restricted by the gift instrument pursuant to paragraph (b) of section
19 five hundred fifty-three of the not-for-profit corporation law, the
20 institution may expend so much of an endowment fund as it deems prudent
21 after considering the factors set forth in paragraph (a) of section five
22 hundred fifty-three of the not-for-profit corporation law.
23 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 is old law to be omitted.