Article Provides a Simple ‘Work Around’ of the ‘Source of Funding’ Reporting Requirements

In today’s Times Union, Chris Bragg offers a simple, yet effective means of avoiding the 2011 state law that was intended to require certain entities that lobby to disclose the source of their funding by requiring issue-oriented lobbying groups that spend more than $50,000 in a year on lobbying to disclose the source of their donations in excess of $5,000.

(Read my original 2011 blog post explaining the source of funding reporting mandate, which JCOPE has called historic.)

To simplify how such schemes are structured:

A deep-pocketed but publicity-shy donor hires a law firm. The law firm, effectively serves as a “pass through” entity by donation to a non-profit organization, which becomes the “face” of the donor’s lobbying/advocacy effort, hiring lobbyists and consultants to advance the donor’s interests. The non-profit is required, under state law, to report the source of its funding – the law firm — but not the original donor.

Click on the graphic on the right for a larger version of the flow chart.