senate Bill S3797

2013-2014 Legislative Session

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

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to finance
Jun 21, 2013 recommitted to rules
Jun 11, 2013 ordered to third reading cal.1261
committee discharged and committed to rules
Feb 15, 2013 referred to finance

Votes

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Jun 11, 2013 - Rules committee Vote

S3797
23
0
committee
23
Aye
0
Nay
2
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Co-Sponsors

S3797 - Bill Details

Current Committee:
Senate Finance
Law Section:
Executive Law
Laws Affected:
Amd ยง174-b, Exec L

S3797 - Bill Texts

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Relates to solicitation used by or on behalf of any charitable organization; requires a statement setting forth the percentage of funds raised by the professional fund raiser or professional solicitor that was forwarded to the charitable organizations on behalf of which it solicited during the past two fiscal years; requires a statement setting forth the percentage of such charitable organization's funds allocated to administrative expenses during the past two fiscal years of the organization; determines fines.

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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.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3797

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 15, 2013
                               ___________

Introduced  by Sens. RANZENHOFER, DeFRANCISCO, MARTINS -- 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 solicitation used by
  or on behalf of any charitable organization

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivisions 2 and 3 of section 174-b of the executive law,
subdivision 2 as amended by chapter 490 of the laws of 2010, subdivision
3  as  amended  by chapter 43 of the laws of 2002, are amended and a new
subdivision 6 is added to read as follows:
  2. Any solicitation used by or on behalf of any  charitable  organiza-
tion 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 SETTING FORTH THE PERCENTAGE OF SUCH CHARITABLE ORGAN-
IZATION'S FUNDS ALLOCATED TO ADMINISTRATIVE EXPENSES DURING THE PAST TWO
FISCAL  YEARS  OF  THE  ORGANIZATION.  FOR PURPOSES OF THIS SUBDIVISION,
"ADMINISTRATIVE EXPENSE" SHALL MEAN ANY DIRECT CONTRIBUTION  OR  PORTION
THEREOF  THAT DOES NOT GO DIRECTLY TO THE PUBLIC OR INDIVIDUAL PERSONS A
CHARITABLE ORGANIZATION SERVES OR ASSISTS.
  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  consider-
ing  the  factors  set  forth  in  paragraph (a) of section five hundred
fifty-three of the not-for-profit corporation law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08686-02-3

S. 3797                             2

  3. In addition to any other disclosure required by law, any  solicita-
tion  by any means by a professional fund raiser or professional solici-
tor 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  SETTING FORTH THE PERCENTAGE OF FUNDS RAISED BY THE
PROFESSIONAL FUND RAISER OR PROFESSIONAL SOLICITOR THAT WAS FORWARDED TO
THE CHARITABLE ORGANIZATIONS ON BEHALF OF WHICH IT SOLICITED DURING  THE
PAST TWO FISCAL YEARS.
  6.  AN  ACTION  FOR  A  VIOLATION  OF SUBDIVISION TWO OR THREE OF THIS
SECTION MAY BE PROSECUTED BY THE ATTORNEY GENERAL, OR HIS OR HER DEPUTY,
IN THE NAME OF THE PEOPLE OF THE STATE, AND  IN  ANY  SUCH  ACTION,  THE
ATTORNEY GENERAL OR HIS OR HER DEPUTY, SHALL EXERCISE ALL THE POWERS AND
PERFORM  ALL  DUTIES  WHICH  THE  DISTRICT  ATTORNEY  WOULD OTHERWISE BE
AUTHORIZED TO EXERCISE OR TO PERFORM THEREIN  PURSUANT  TO  SECTION  ONE
HUNDRED  SEVENTY-FIVE  OF  THIS  ARTICLE.  ANY  CHARITABLE ORGANIZATION,
PROFESSIONAL FUND RAISER  OR  PROFESSIONAL  SOLICITOR  FOUND  TO  BE  IN
VIOLATION OF SUBDIVISION TWO OR THREE OF THIS SECTION SHALL BE FINED ONE
THOUSAND  DOLLARS FOR THE FIRST VIOLATION AND SUCH ORGANIZATION'S REGIS-
TRATION PURSUANT TO SECTION ONE HUNDRED SEVENTY-TWO, ONE HUNDRED  SEVEN-
TY-THREE OR ONE HUNDRED SEVENTY-THREE-B OF THIS ARTICLE, MAY BE REVOKED.
ANY  CHARITABLE  ORGANIZATION,  PROFESSIONAL FUND RAISER OR PROFESSIONAL
SOLICITOR FOUND TO HAVE BEEN IN VIOLATION OF SUBDIVISION TWO OR THREE OF
THIS SECTION IN THREE OR MORE SEPARATE OCCURRENCES, SHALL BE  FINED  TEN
THOUSAND  DOLLARS  AND  SUCH  ORGANIZATION'S  REGISTRATION  PURSUANT  TO
SECTION ONE  HUNDRED  SEVENTY-TWO,  ONE  HUNDRED  SEVENTY-THREE  OR  ONE
HUNDRED  SEVENTY-THREE-B  OF THIS ARTICLE SHALL BE REVOKED. THE CONSUMER
PROTECTION DIVISION SHALL, WHENEVER POSSIBLE, ASSIST THE ATTORNEY GENER-
AL IN ANY INVESTIGATION OF A CHARITABLE ORGANIZATION  PURSUANT  TO  THIS
SUBDIVISION.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become law and shall apply to all solicitation used by or on behalf
of any charitable organization on and after such effective date.

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