Testimony of Public Advocate Bill de Blasio on Regulation of Nonprofit Political Activity

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    Testimony of Bill de Blasio

    Public Advocate for the City of New York

    New York State Office of the Attorney GeneralPublic Hearing on Political Disclosure Regulations for Nonprofits

    January 15, 2013

    Good Afternoon. I would like to thank the Attorney General for holding this important

    public hearing today. This is an issue that I care about deeply and have worked on closely.

    As Public Advocate for the City of New York, I serve as ombudsman for more than eight

    million residents in the five boroughs. My office holds government, private corporations

    and nonprofits accountable to the law and helps to protect New Yorkers against fraud and

    deception.

    In my role as the Citys head watchdog, I have been deeply concerned by the rise of new

    shadowy nonprofit organizations that emerged in response to the Supreme Courts 2010

    ruling on Citizens United v. Federal Election Commission.

    In recent years, the nonprofit sector has struggled at the hand of a challenging economy.

    There are 60,000 fewer public charities and private foundations today, compared to January

    2010. However, for one segment of nonprofits 501(c)4 advocacy organizations and501(c)6 trade associations the last three years have been a boon for business. In fact, the

    number of organizations registered under section 501(c)4 and 501(c)6 of the IRS Code have

    increased 10% since January 2010, thanks to Citizens United.1

    1 National Center for Charitable Statistics (NCCS) at the Urban Institute. Online at http://nccs.urban.org/.

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    involvement in elections or their support for particular candidates. 6 However, the 60 Plus

    Association has a dirty little secret. The organization spent more than $10 million on the last

    two federal elections including more than $800,000 in attack ads targeting a dozen New

    York candidates.

    It is appalling to think that one of my elderly neighbors could be tricked into giving money

    to an organization under false pretense and these donations could wind up funding the dirty

    campaign ads that they so deeply loathe. What may be equally deceptive is that these attack

    ads often have zero direct relevance to senior issues. One such television ad that was

    broadcast in upstate New York this last fall, for example, showed stacks of money painted

    with the Chinese flagwhile explaining that Congressman Dan Maffei should be fired forhis failure to stop billions in government borrowing from China.7

    It is past time to shine a public spotlight on political committees that masquerade as tax-

    exempt nonprofits. We know that the vast majority of social welfare groups, such as

    volunteer fire departments, Rotary clubs, veterans organizations, and community groups

    provide great benefit to our society. These sham nonprofits do not.

    Lets not allow a few bad apples undermine public trust and spoil the great work being done

    at charities and civic groups across New York. To quote U.S. Supreme Court Justice Louis

    Brandeis, I believe strongly that sunlight is the best disinfectantand thats exactly what we

    need here. The Attorney Generals proposed regulations are essential to protecting New

    Yorkers and bringing much needed transparency to our elections.

    I applaud this work and urge you to quickly move forward on these reforms. Thank you.

    6 60 Plus Association Inc. website. Online at http://60plus.org/

    7Dan Maffei Very Good, Television advertisement by the 60 plus Association on YouTube. Online athttp://www.youtube.com/watch?v=v1khzHucQXQ&feature=share&list=UUcX-wx627-WaOL50cd_HlOQ