Financial Reports to Be Filed by Certain Charitable Organizations
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Overview

Certain charitable organizations are required to file financial reports with the New York Department of State under Article 7-A of the Executive Law. Executive Law Sections 172-b, 172-e and 172-f provide the filing requirements for Annual Financial Reports, Funding Disclosure Reports and Financial Disclosure Reports respectively. Online filing for all financial reports is now available.

All reports are to be filed online on the Department of State’s website. Filers will need a NY.Gov account to file a report through the Department’s Charitable Organization Financial Reporting System. A new NY.Gov account may be created at the following website: https://my.ny.gov.

Please review our frequently answered questions for more information and the text of the proposed regulations below.

Statutory Provisions

Annual Financial Reports

Any charitable organization registered with the Office of Attorney General that is required to file an Annual Financial Report with the Office of the Attorney General under subdivision one or two of Executive Law Section 172-b, or that is required to file a Funding Disclosure Report and/or a Financial Disclosure Report with the Department of State for a reporting period during the applicable fiscal year is also required to file such Annual Financial Report, including all required forms and attachments, with the Department of State.

The Annual Financial Report must be filed with the Department of State on or before the fifteenth day of the fifth calendar month after the close of the charitable organization’s fiscal year. (Executive Law Section 172-b).

The fee for filing an Annual Financial Report is $25.

Funding Disclosure Reports

Any covered entity that makes an in-kind donation in excess of $10,000 to a recipient entity during a relevant reporting period to file a Funding Disclosure Report with the Department of State. The Funding Disclosure Report must be filed with the Department of State within 30 days of the close of a reporting period. (Executive Law Section 172-e).

The fee for filing a Funding Disclosure Report is $25.

Financial Disclosure Reports

Any covered entity that makes expenditures for covered communications in an aggregate amount or fair market value exceeding $10,000 in a calendar year is required to file a Financial Disclosure Report with the Department of State. The Financial Disclosure Report must be filed with the Department of State within 30 days of the close of the reporting period. (Executive Law Section 172-f).

The fee for filing a Financial Disclosure Report is $25.

To File Online

Frequently Asked Questions

Please review our frequently answered questions (FAQs)

Rules and Regulations

The following proposed regulations are published in the February 3, 2021 issue of the New York State Register:

Proposed Regulations
19 NYCRR, Chapter IV, Part 146
Charitable Organization Filings

 

Sec.
146.1 Definitions
146.2 Applicability; filing of reports
146.3 Annual Financial Report
146.4 Funding Disclosure Report
146.5 Financial Disclosure Report
146.6 Manner of filing; fees
146.7 Additional Information or Documentation
146.8 Examination of Reports
146.9 Administrative Hearings
146.10 Publication of Reports

 

146.1 Definitions

For purposes of this Part, the following terms have the following meanings:

(a) “Charitable” means, pursuant to Article 7-A of the Executive Law (Article 7-A), all purposes deemed charitable under applicable federal law, philanthropic, patriotic, eleemosynary or for law enforcement support and any other purpose included in the definition of charitable organizations in Article 7-A, and any purpose included in Not-for-Profit Corporation Law Section 102(a)(3-b).

(b) “Charitable organization” means an organization that is organized and/or operated for charitable purposes, whether or not exempt from federal income taxation, that is required to register with the Attorney General pursuant to Article 7-A of the Executive Law.

(1) The term charitable organization includes any domestic or foreign corporation, unincorporated association or other legal entity, that is organized and/or operated for charitable purposes, including without limitation:

(i) any corporation formed and/or operated for charitable purposes as defined in NPCL section 102(a)(3-b);

(ii) organizations exempt from federal income taxation pursuant to United States Internal Revenue Code (the Code) section 501(c)(3), including wholly charitable trusts; and

(iv) organizations exempt from federal income taxation pursuant to another code section that are organized and/or operated for charitable purposes.

(c) “Charitable purpose” means the statement of the charitable organization’s mission, all charitable categories identified in a filing entity’s application for recognition of exemption as a 501(c) entity, any narrative description of the filing entity’s activities provided with such application, and any supporting details to the narrative description provided with such application that is filed with the Department of State pursuant to this Part.

(d) “Filing entity” means a qualifying 501(c)(3) entity or qualifying 501(c)(4) entity required to file an annual financial report, funding disclosure report, or financial disclosure report pursuant to Article 7-A of the Executive Law.

(e) “Qualifying 501(c)(3) entity” means any corporation or entity that is qualified as an exempt organization or entity by the United States Department of the Treasury under I.R.C. 501(c)(3) that is required to report to the Department of State pursuant to section 172-e of the Executive Law.

(f) “Qualifying 501(c)(4) entity” means any corporation or entity that is qualified as an exempt organization or entity by the United States Department of the Treasury under I.R.C. 501(c)(4) that is required to file a source of funding report with the Joint Commission on Public Ethics pursuant to sections one-h and one-j of the Legislative Law.

(g) “Disclosure-related harm” means harm, threats, harassment, or reprisals to the source of a donation or to individuals or property affiliated with the source of a donation that may stem from public disclosure of all or a portion of in-kind donations made to a qualifying 501(c)(3) entity and financial assistance provided by any qualifying 501(c)(3) entity to one or more qualifying 501(c)(4) entities.

(h) “Notice of Intent to Publish” means a document or electronic notice provided by the Secretary to a filing entity of the Secretary’s intent to publish any report filed with the Department of State pursuant to Article 7-A of the Executive Law, where a filing entity has provided a statement of fact relating to disclosure-related harm and where the Secretary has determined that the facts provided in such statement fail to demonstrate that publication of any report may cause disclosure-related harm.

(i) “Secretary” means the Secretary of State of the State of New York.

(j) “SAPA” means the State Administrative Procedure Act of the State of New York.
 

146.2 Applicability; filing of reports

(a) To whom this part applies. This part applies to charitable organizations as defined in section 146.1 of this Part. The following sections of this Part contain the requirements applicable to charitable organizations duty to file reports with the Department of State.

(b) Filing of reports. Charitable organizations must submit their financial reports to the NYS Department of State, Division of Corporations, State Records and Uniform Commercial Code in such manner as prescribed by the Secretary of State.
 

146.3 Annual Financial Report

(a) If an Annual Financial Report delivered to the Department of State for filing complies as to form with the requirements of law and the filing fee required by law for such report has been paid, the report shall be filed by the Department of State.

(b) A filing entity shall submit to the Department of State, along with the entity’s Annual Financial Report, a statement of the filing entity’s mission that is consistent with what was or would be provided to the Internal Revenue Service of the United Stated Department of the Treasury with a filing entity’s application for recognition of exemption as a 501(c) organization, all charitable categories identified in such application, any narrative description of the filing entity’s activities provided with such application, and any supporting details to the narrative description provided with such application.
 

146.4 Funding Disclosure Report

(a) A qualifying 501(c)(3) entity shall file, along with the entity’s Funding Disclosure Report, as required by section 172-e of the Executive Law, a statement of the qualifying 501(c)(3) entity’s mission that is consistent with what was or would be provided to the Internal Revenue Service of the United Stated Department of the Treasury with a qualifying 501(c)(3) entity’s application for recognition of exemption as a 501(c)(3), all charitable categories identified in such application, any narrative description of the qualifying 501(c)(3) entity’s activities provided with such application, and any supporting details to the narrative description provided with such application.

(b) If the qualifying 501(c)(3) entity filing a funding disclosure report has reason to believe that public disclosure will cause disclosure-related harm, the qualifying 501(c)(3) entity may submit to the Department of State a statement of relevant facts supporting such assertion. Such statement of relevant facts shall indicate whether disclosure-related harm would stem from public disclosure of all of the in-kind donations to the qualifying 501(c)(3) entity and financial assistance provided by any the qualifying 501(c)(3) entity to one or more the qualifying 501(c)(4) entities, or only to a portion thereof. A statement of relevant facts shall not be subject to publication or public disclosure. The qualifying 501(c)(3) entity providing such statement of relevant fact shall also provide the Department of State with an email address or other manner of receiving electronic notification acceptable to the Department of State that will serve as the means of communicating a notice of intent to publish, as provided in section 146.9 of this Part. It is the responsibility of the filing entity to provide the Department of State with any change to said email address or other approved point of contact.

(c) Certification. Each funding disclosure report shall be signed by an officer, director or duly authorized person and include the name, address, and capacity in which such person signs such report.

(d) If a Funding Disclosure Report delivered to the Department of State for filing complies as to form with the requirements of law and the filing fee required by law for such report has been paid, the report shall be filed by the Department of State.
 

146.5 Financial Disclosure Report

(a) A qualifying 501(c)(4) entity shall file, along with the entity’s Financial Disclosure Report, as required by section 172-f of the Executive Law, a statement of the qualifying 501(c)(4) entity’s mission that is consistent with what was or would be provided to the Internal Revenue Service of the United Stated Department of the Treasury with a qualifying 501(c)(4) entity’s application for recognition of exemption as a 501(c)(3), all charitable categories identified in such application, any narrative description of the qualifying 501(c)(4) entity’s activities provided with such application, and any supporting details to the narrative description provided with such application.

(b) If the qualifying 501(c)(4) entity filing a Financial Disclosure Report has reason to believe that public disclosure will cause disclosure-related harm, the qualifying 501(c)(4) entity may submit to the Department of State with the qualifying 501(c)(4)’s report a statement of relevant facts supporting such assertion. Such statement of relevant facts shall indicate whether disclosure-related harm would stem from public disclosure of all of the in-kind donations to the qualifying 501(c)(3) entity and financial assistance provided by any the qualifying 501(c)(3) entity to one or more the qualifying 501(c)(4) entities, or only to a portion thereof. A statement of relevant facts shall not be subject to publication or public disclosure. The qualifying 501(c)(4) entity providing such statement of relevant fact shall also provide the Department of State with an email address or other manner of receiving electronic notification acceptable to the Department of State that will serve as the means of communicating a notice of intent to publish, as provided in section 146.9 of this Part. It is the responsibility of the filing entity to provide the Department of State with any change to said email address or other approved point of contact.

(c) Certification. Each Financial Disclosure Report shall be signed by an officer, director or duly authorized person and include the name, address, and capacity in which such person signs such report.

(d) If a Funding Disclosure Report delivered to the Department of State for filing complies as to form with the requirements of law and the filing fee required by law for such report has been paid, the report shall be filed by the Department of State.
 

146.6 Manner of filing; fees

(a) All submissions may be filed electronically.

(b) Identification of Filings. Identifying information, including the organization or entity name and, if applicable, the registration number assigned by the Attorney General, must be placed on all correspondence and other documents, including payments, submitted to the Department of State.

(c) Fees. Charitable organizations are required to pay the filing fee required by law for each report or document delivered to the Department of State for filing under Executive Law Article 7-A.
 

146.7 Additional Information or Documentation

In addition to any documents a qualifying 501(c)(3) entity or qualifying 501(c)(4) entity must file with the Department of State as part of or with any report required by Article 7-A of the Executive Law, the Department of State may require a charitable organization to submit any information or documentation relevant to the Secretary of State’s review of such reports as required by section 93-a of the Executive Law.
 

146.8 Examination of Reports

(a) Notice of Intent to Publish. Should the Secretary of State determine that public disclosure of all or any part of a report required to be filed with the Department of State pursuant to Article 7-A of the Executive Law will not cause disclosure-related harm, and where the filing entity filed a statement of relevant facts asserting that public disclosure of all or part of the subject report may cause disclosure-related harm, the Secretary of State shall notify the filing entity of the intent to publicly disclose all or part of the report in the manner provided in section 146.4 or 146.5 of this Part.

(b) Appeal. If the filing entity wishes to administratively appeal the Secretary’s determination, the filing entity shall notify the Secretary of State within 30 days of the Secretary’s transmission of Notice of Intent to Publish. Failure to provide timely notice of intent to appeal shall be deemed consent by the filing entity to publication of the subject report.
 

146.9 Administrative Hearings

(a) Administrative hearings shall be conducted in conformity with SAPA Article 3 and the provisions of this section. No provision of Part 400 of Title 19 of the New York Codes, Rules and Regulations shall be applicable to hearings conducted pursuant to this Part.

(b) Commencing an administrative hearing. A filing entity that has filed a timely notification of intent to administratively appeal a Notice of Intent to Publish shall be provided with notice of hearing not less than 21 days before commencement of an administrative hearing. The notice of hearing shall be served by certified mail, return receipt requested, and shall contain the following information:

(1) a statement of the time, place, and nature of the hearing;
(2) a statement of the legal authority and jurisdiction under which the hearing is to be held;
(3) a reference to the particular sections of the statutes and rules involved, where possible;
(4) a short and plain statement of matters asserted; and
(5) a statement that interpreter services shall be made available to deaf persons, at no charge.

(c) The filing entity may opt-in to the hearing being conducted remotely by electronic means.

(d) Disclosure. There shall be limited discovery in administrative proceedings conducted pursuant to this Part. Upon demand and at least seven days prior to the hearing either party is entitled to the following:

(1) Any record that would be disclosable under the Freedom of Information Law (New York Public Officers Law – Access to Records);
(2) Records relied upon by the Department of State in issuing its Notice of Intent to Publish provided that nothing contained herein shall require of production of deliberative communications between the Department of State, Department of Taxation and Finance or the Department of Law;
(3) Identification of witnesses intended to be called at hearing; and
(4) Disclosure of the evidence that the other party intends to introduce at the hearing, including documentary evidence, provided, however, the provisions of this subdivision shall not be deemed to require the disclosure of information or material otherwise protected by law from disclosure, including information and material protected because of privilege or confidentiality.

(e) Appearances.

(1) A filing entity shall participate in any administrative hearing through one or more officers of the filing entity or an attorney representing the entity. Any representative of a party who is other than an attorney licensed to practice in New York State shall disclose such person’s authority to make legal decisions that bind the party. All persons appearing before the Administrative Law Judge shall conform to the standards of conduct required of attorneys appearing before the courts of the State of New York. Any person signing any papers submitted in or entering an appearance in any proceeding shall be considered to have agreed to conform to those standards. A failure to conform to those standards shall be grounds for exclusion from that and any later proceeding. Nothing in this paragraph authorizes a non-lawyer to engage in the practice of law.
(2) Any person appearing on behalf of a party in a representative capacity may be required by the Administrative Law Judge to show and state on the record the person’s authority to act in such capacity and to file a notice of appearance with the Administrative Law Judge.
(3) If there is a change or withdrawal of a party’s attorney or authorized representative, the party shall provide notice of the change or withdrawal to the Administrative Law Judge and the attorneys or authorized representatives of all other parties, or, if a party appears without an attorney or authorized representative, to the party within ten (10) days of the change or withdrawal.

(f) Conduct of administrative hearing.

(1) The filing entity shall have the burden of proving, by the preponderance of the evidence, that publication of the report at issue may cause disclosure-related harm. The filing entity shall present evidence in support of the statement of relevant facts that was provided with the funding or financial disclosure report at issue.

(2) Order of events. The Administrative Law Judge has discretion to determine and adjust the order of events and presentation of evidence. In general, the order of events at a hearing shall be as follows:

(i) Formal opening. The Administrative Law Judge shall convene the hearing by opening the record, identifying applications involved, if any, and making appropriate procedural announcements.
(ii) Opening statements. Prior to the commencement of the adjudicatory sessions, each party may, at its option, offer a brief opening statement of position on the application.
(iii) Admission of evidence. The filing entity shall present its direct case. Cross-examination shall be conducted by parties in a sequence in which the parties will present their direct cases. The Secretary may then present evidence supporting the underlying determination.
(iv) Close of record. Closing statements of position will be dealt with in the same manner as opening statements. At the concluding session of the hearing, the Administrative Law Judge shall determine whether to allow the submission of written post-hearing briefs. The hearing record shall be officially closed upon the receipt of the stenographic record by the ALJ, the receipt of additional technical data or other material agreed at the hearing to be made available after the hearing, or the submission of briefs and reply briefs, conclusions of law, memoranda, and exceptions, if any, whichever occurs last. The parties may opt-in to electronic notification.
(v) Where the Administrative Law Judge permits the filing of briefs, the Administrative Law Judge shall determine page limits for briefs and the schedule for filing. Simultaneous filing may be required, and reply briefs may be permitted by the Administrative Law Judge. A party shall give specific reference to the portions of the record, whether transcript or otherwise, relied upon in support of the respective statements of fact made throughout the brief. Briefs shall be considered only as argument and shall not refer to or contain any evidentiary material outside of the administrative record.

(3) In proceedings pursuant to this Part, the Administrative Law Judge has power to:

(i) Rule upon all motions and requests, including those that decide the ultimate merits of the case;
(ii) Set the time and place of the hearing, recesses and adjournments;
(iii) Administer oaths and affirmations;
(iv) Issue subpoenas upon request of a party not represented by counsel admitted to practice in New York State. Subpoenas issued by the ALJ are regulated by the Civil Practice Law and Rules;
(v) Upon the request of a party, quash and modify subpoenas except that in the case of a non-party witness the ALJ may quash or modify a subpoena regardless of whether or not a party has so requested;
(vi) Summon and examine witnesses;
(vii) Preclude irrelevant, immaterial or unduly repetitious, tangential or speculative evidence, argument, examination or cross-examination;
(viii) Limit the number of witnesses;
(ix) Take any measures necessary for maintaining order and the efficient conduct of the proceeding; and
(x) Issue orders limiting the length of cross-examination, the form, length and content of motions and briefs and similar matter.

(4) Evidence. The strict rules of evidence do not apply with respect to administrative adjudicatory proceedings. The evidence shall be confined to whether publication of all or part of any subject report may cause disclosure-related harm.
(5) Ruling on administrative hearing. Upon issuance of a final ruling by the Administrative Law Judge as to whether publication of all or part of any subject report may cause disclosure-related harm, the administrative hearing process shall conclude.

(i) The Administrative Law Judge’s ruling shall be in writing and shall describe the issues, recite the relevant facts, the pertinent provisions of law and regulations, make appropriate findings, determine the issues, state reasons for the determination and, when appropriate, direct specific action.
(ii) A copy of such decision shall be mailed, by certified and regular mail, to all parties or a party’s attorney or other designated hearing representative.
(iii) Where the Administrative Law Judge’s final ruling is adverse to the filing entity, the filing entity may seek judicial review in accordance with the provisions of article 78 of the Civil Practice Law and Rules.

 

146.10 Publication of Reports

(a) Whenever a filing entity fails to provide the Department of State with a statement of relevant facts pursuant to paragraph (b) of section 146.4 or 146.5 of this Part, upon expiration of the time for a filing entity to provide the Secretary with notice of intent to appeal a Notice of Intent to Publish any report filed with the Department of State, or whenever the Secretary makes a determination under section 93-a of the Executive Law, the Secretary may publish any report filed with the Department of State pursuant to Article 7-A of the Executive Law, and the mission statement provided by the filing entity, on its website. Such publishing shall not include the names and addresses of individual donors to filing entities nor shall such publishing include a filing entity's Internal Revenue Service Form 990 Schedule B.

(b) Pursuant to section 93-a of the Executive Law, only a report or part of any report filed with the Department of State that was published pursuant to paragraph (a) of this section shall be made publicly available or disclosed when requested under Article 6 of the Public Officers Law. No information provided in a statement of relevant facts pursuant to paragraph (b) of section 146.4 or 146.5 of this Part shall be subject to public disclosure when requested under Article 6 of the Public Officers Law.

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