Stroock Special Bulletin
"Problems for Not-for-Profits? New Disclosure Regulations for Political Advocacy Proposed"
Last month the New York State Attorney General released Proposed Regulations that require nonprofit groups registered with the state, including those exempt under Internal Revenue Code §§ 501(c)(4) ("social welfare" organizations) and 501(c)(6) ("trade associations"), to disclose donors and expenditures relating to state and local campaigns. As we saw during the 2012 presidential election, these groups have become a common and powerful vehicle for influencing elections. Absent state or local requirements, however, their funding and spending are not disclosed to election regulators. Given the public outcry relating to anonymous campaign spending, the Proposed Regulations intend to address this problem head-on.