Nonprofits must
disclose contracts
By GREGORY J. VOLPE,
thnt.com Online, October 24, 2007
TRENTON -- In a split vote
that disagrees with advice from the Office of the Attorney General, the state
Election Law Enforcement Commission once again ruled that nonprofit
organizations must comply with the state's pay-to-play disclosure rules.
ELEC voted 2-1 Tuesday to force nonprofits to disclose government-held contracts
and donations by certain officials. In March, the commission ruled that
nonprofits must be held to the same reporting requirements as for-profit
businesses, but it has since pushed back the deadline for nonprofits as the
attorney general conducted a review.
The opinion found the law "can properly be construed to exclude nonprofit
entities," swaying one commissioner, but not all three, on ELEC, which ordered
nonprofits to submit their reports by Nov. 30.
"The interpretation that I read from the attorney general's office was very far
from being definitive," commission chairwoman Jerry Fitzgerald English said.
"It uses the terms 'can, could.' It is not a definitive 'it is.' "
Vice chairman Peter J. Tober said the Legislature could have been clearer if it
intended an exemption for nonprofits.
"If the Legislature intended to limit its definition, it could have very easily
included the words "for profit,"' Tober said. "It did not."
Dissenting was Commissioner Albert Burstein, who said he believed lawmakers
meant to exclude charities and urged clarification.
"I would have a recommendation to the Legislature to go back to the drawing
board and give us their view, in legislative form, as to what was intended,"
Burstein said.
Linda M. Czipo, executive director of the Center for Non-Profits, has argued
that most nonprofits are forbidden from making contributions as an entity and
says forcing board members to disclose contributions will make it appear as if
there were political connections when there are none.
"I think that we would like to see whether other remediation is possible,
whether it's through the Legislature or something else," Czipo said
gvolpe@app.com
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