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James V. Lacy

Forced disclosure of donors to advocacy nonprofits proposed by House Democrats

Democratic leaders have proposed a lobbying reform measure that, if enacted, will require disclosure of names and addresses of donors of $500 to nonprofits that actively advocate for Federal legilsation.  Such donors have never been subject to public disclosure before and advocacy groups fear a "chilling affect" on grass roots advocacy activity will occur if the Democrats succeed with their bill.

According to a report in The Hill,  “This is written in a very vague manner such that it is unclear what their intent is and could be construed to require all 501(c) organizations to disclose anyone who gives more than $500 in a quarter,” said Cleta Mitchell, a lawyer with Foley Lardner who represents some conservative membership organizations, including the NRA and Americans for Tax Reform, who would be affected by the measure.  Mitchell said that a lifetime membership to the NRA costs about $700. She said the Democratic leadership’s bill could be interpreted as requiring the NRA to disclose the names of anyone who purchases a lifetime membership in the group.

The Hill also reports a House Democratic aide familiar with the bill’s language said Mitchell’s interpretation of the section was accurate.  The proposed regulations affecting nonprofit groups raises alarm because of key differences between the newly drafted rules and a corresponding section in the lobbying reform bill Democratic leaders introduced last.

According to reports, the section in last year’s bill requiring coalitions and associations to disclose their membership included a blanket exemption for 501(c) groups. In other words, advocacy groups, such as the Sierra Club and the NRA, unions and trade associations were exempted from required disclosure of their membership.  The House Judiciary Committee marks up the bill today. If lawmakers fail to soften the proposed regulations, expect the NRA, the National Right to Life Committee and other membership organizations to mobilize a final bill.

Will Democratic legislators in California respond with their own disclosure bill affecting donors to nonprofits and advocacy groups that lobby in Sacramento?