The Independent View: NY Nonprofits' Campaign Spending New Rules for Disclosure

Thanks to Laura Lorenzetti's article in Crain's insider for this post.

New York state nonprofits will be required to reveal their political spending as a result of regulations announced Wednesday by state Attorney General Eric Schneiderman. The rules are a response to the Supreme Court's Citizens United ruling, which led to a surge in campaign advertising by tax-exempt organizations.

The regulations, which the attorney general unveiled at a breakfast event in Manhattan, allow for closer scrutiny of such nonprofits, but will not force them to reveal individual donors. Nonprofits registered with the state will be required to report annually the percentage of their expenditures that go to election campaigns, and any group that spends over $10,000 annually must file an itemized account of expenses and contributions. All disclosures will be made public online.

The rules will take effect for some political spending for the 2013 elections and for all of it next year, the attorney general said.

The new regulations do not appear to be targeted at lobbying groups like the Committee To Save New York, which has taken in millions in private donations to help advance Gov. Andrew Cuomo's legislative initiatives, but rather shadowy super PACs that engage in politicking like those financed by the conservative Koch brothers and liberal billionaire George Soros.

The first-term attorney general said the new regulations are a first step toward campaign finance reform and advocated for immediate action before Albany's legislative session ends later this month, citing recent scandals as an impetus for action. In the last seven years, 32 state elected officials have been convicted or charged with corruption or otherwise accused of wrongdoing, according to the Brennan Center for Justice, an advocacy organization.

Mr. Schneiderman called for a small-donor matching program similar to the one implemented in New York City during the Koch administration. For campaign donations by city residents up to $175 to candidates for city office, the city matches the funds 6-to-1. The system has resulted in greater participation by small donors, according to a study by the Brennan Center.

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