Financial Disclosures

NYS Election Law requires all political committees and candidates to, at a minimum, file campaign financial disclosure statements twice each year.  These are the January and July Periodic Reports.  Additionally, those committees and/or candidates who participate in an election must file pre-election and post-election reports.  This applies to primary, special, and general elections.  Political Action Committees (PACs), Independent Expenditure Committees (IECs), and party committees are assumed to participate in every election unless they notify the New York State Board of Elections (NYSBOE) that they are not participating in a specific election.  Therefore, they are required to file all pre-election and post-election reports unless the form Non-Participation in Election(s) by Registered PACs, Party and Constituted Committees, or Independent Expenditure Committee (CF-20) is submitted to the NYSBOE.  This form is not retroactive and must be filed no later than 32 days prior to the primary and/or general election to which it applies. 

The due dates for all campaign financial disclosure statements are posted annually on the NYSBOE Filing Calendar.  Current and prior year Filing Calendars can be viewed on the NYSBOE website.   

The failure to file a required report, including filing it late and/or not including all information required by NYS Election Law, subjects the committee, the treasurer, and the candidate, as applicable, to civil penalties.  The maximum penalty for each report is $1,000.  There is an additional penalty of up to $10,000 for failing to timely file three or more reports in an election cycle.  The New York State Board of Elections Division of Election Law Enforcement Chief Enforcement Counsel (CEC) may seek these penalties in a formal civil enforcement proceeding.  The CEC may enter into a settlement agreement with the committee, treasurer, and/or candidate before or after the commencement of a formal proceeding. 

A formal enforcement proceeding, based on missing, incomplete, or untimely filing of campaign finance disclosure statements, begins after the CEC officially makes a request to the New York State Board of Elections that a Hearing Officer be assigned to the matter.  The respondents will then be served with a Notice of Hearing, the complaint, and supporting documentation.  Respondents have 20 days after being served to submit an answer and/or to request a hearing.  If no hearing is requested, a Hearing Officer will decide the matter based on any documents that the CEC and the respondents submitted.

The NYS Election Law and New York State Board of Elections Rules and Regulations establish limitations on the dollar amount of funds or value of goods that can be donated to candidates and political committees. There are two commonly used phrases when discussing these limitations: Contribution Limit(s) and Receipt Limit(s). A Contribution Limit is the amount that a contributor is legally allowed to donate. A Receipt Limit is the amount that a specific candidate or political committee is legally allowed to accept from a contributor. Most of the time, these figures will be the same. However, there are specific instances where a Contribution Limit is not the same as the Receipt Limit of the committee.

The most common examples of the Contribution Limit and Receipt Limit being different involve situations when certain entities donate to political committees. For example, corporations have a Contribution Limit of $5,000. If a corporation wants to contribute to a political committee whose Receipt Limit is $1,000, the corporation can only give $1,000, even though the corporation’s Contribution Limit is $5,000. Conversely, if a corporation wants to donate to a committee whose Receipt Limit is $10,000, the corporation is limited to its Contribution Limit of $5,000.

Individual Contributors

Individuals wishing to contribute to a political committee must abide by certain limitations, depending on the type of political committee the recipient committee is registered as.

Contributions made to candidates or single authorized candidate committees are limited to the Receipt Limit of the office that the candidate is seeking. Receipt Limits for state offices are on the New York State Board of Elections (NYSBOE) website. Receipt Limits for local offices can be obtained from the county board of elections for the jurisdiction where the election is taking place. To find a local board of elections, visit the County Boards information page on the NYSBOE’s website.

• Candidate and Spouse - Contributions or expenditures made by the candidate and/or their spouse in support of the campaign are not limited. However, all transactions must be reported on the applicable campaign finance disclosure statement. See NYS Election Law §§14-100(9)(3) and 14-114(8).
• Checks from Joint Bank Accounts - If a contribution is received from a joint account, the contributor is presumed to be the signatory on the check. Any deviation from this needs to be documented. One check may be written from a joint account for the maximum limit for both parties on the account. However, each individual’s contribution must be reported separately in the campaign financial disclosure statements using the same check number.

Professional Limited Liability Companies/Limited Liability Companies (PLLC/LLCs)

Effective January 31, 2019, new legislation was passed that significantly changed the amount PLLC/LLCs were allowed to contribute to political committees. See NYS Election Law § 14-120(3). The new legislation limits PLLC/LLC contributors to an aggregate $5,000 annual Contribution Limit. Additionally, any PLLC/LLC that makes a political contribution is required to submit a Statement of Identity for Limited Liability Companies (LLCs) Including Professional Limited Liability Companies (PLLCs) form, referred to as an SOI form, to the New York State Board of Elections by December 31 of the year in which the contribution was made.

The new legislation also requires committees that receive contributions from PLC/LLCs to attribute the contribution proportionately to the owners/members of the PLLC/LLC based upon that owner/members’ ownership interest.

• In other words, if a PLLC/LLC contributes $900 to a political committee and there are three owners with equal shares (33%), the breakdown would look like this:
  • Owner 1 - $300.00
  • Owner 2 - $300.00
  • Owner 3 - $300.00
• If the owners’ shares were 60%, 25%, and 15%, the breakdown would look like this:
  • Owner 1 - $540.00
  • Owner 2 - $225.00
  • Owner 3 - $135.00
• The amount of a contribution from a PLLC/LLC attributed to the owner/member is included in determining the owner/member’s individual Contribution Limit. 
  • Using the above example, if the political committee the PLLC/LLC contributed to is a single candidate committee with a $540 Receipt Limit, Owner 1 would have reached the maximum contribution allowed and would be unable to give the committee any further contributions. Owner 2 would be able to contribute an additional $315. Owner 3 would be able to contribute an additional $405.

Corporations

Corporations are limited to an annual aggregate Contribution Limit of $5,000. See NYS Election Law § 14-116(2). Corporations must also abide by the Receipt Limit of the committee they are contributing to. If a single candidate committee has a $1,000 Receipt Limit, a corporation can only give $1,000 to that committee. On the other hand, if the Receipt Limit of the committee is greater than $5,000, a corporation can only give up the $5,000 annual maximum Contribution Limit.

There is no attribution requirement for corporations, and each separate legal corporation has its own annual Contribution Limit. So, if multiple corporations are owned by the same individual(s), each corporation can contribute the maximum allowed. These contributions are NOT included in determining the individual contribution limit of the owner(s).

• For example, if three corporations are all owned by the same single shareholder, they can each contribute $1,000 to a committee that has a $1,000 Receipt Limit. The individual owner can also give $1,000 to that committee, which goes towards that person's individual Contribution Limit.

Partnerships

Contributions from partnerships are reported in the partnership’s name until the aggregate amount contributed exceeds $2,500. After this aggregate limit, the committee must attribute the amount of the contribution(s) to each partner whose share of the contribution exceeds $99. See NYS Election Law § 14-120(2).

• The amount of a contribution from a partnership attributed to a partner is included in determining that partner’s individual Contribution Limit.

Filing obligations do not stop if a candidate decides to stop running for office or loses the election. In order to end filing obligations, the committee treasurer or the candidate needs to formally request termination with the New York State Board of Elections (NYSBOE) using the Termination or Resignation Request Form/No-Activity Report Form (CF-18). For more information about terminating a committee, please see the section Terminating a Committee below or the Resignation/Termination page on the NYSBOE website.

To request the termination of a political committee, the treasurer or candidate needs to submit a Termination or Resignation Request Form/No-Activity Report Form (CF-18) to the New York State Board of Elections (NYSBOE). After receipt of the CF-18, the NYSBOE Compliance Unit will review the committee records to determine that all required criteria have been met and that the committee is, therefore, eligible for termination. To successfully terminate a political committee, the following criteria must be met:

• All required campaign financial disclosure statements must be filed
• The outstanding balance shown in the NYSBOE’s Electronic Filing System must be $0.00.
• There can be no outstanding loans or liabilities.
• If there were any loans or forgiven liabilities, all applicable evidence of indebtedness and forgiveness must be filed with NYSBOE.

Submitting the CF-18 does NOT mean that the committee has been terminated. Until you receive confirmation from NYSBOE that the termination request was successful, and all filing obligations have been terminated, the committee is still considered to be active and is legally obligated to file campaign financial disclosure statements. If the NYSBOE Compliance Unit’s review determines that the committee is eligible for termination, a successful Committee Termination Letter will be sent. It is at this point that filing obligations for the committee cease.

In the event that a termination request is denied, you will receive information regarding what needs to be rectified for the committee to qualify for termination. After the issues identified have been addressed, another CF-18 must be filed with NYSBOE. Please note that there is a statutory requirement that all political committee records be maintained for five years. See NYS Election Law § 14-188(1)

For more information about terminating a committee, please see the Resignation/Termination page on the NYSBOE website.

One of the requirements to successfully terminate a committee is that the outstanding balance showing in the New York State Board of Elections Electronic Filing System be $0.00. If there are funds remaining, there are multiple permissible ways to disperse those remaining committee funds:

• Remaining funds can be transferred, if eligible
• Funds can be contributed to a political committee/candidate subject to Receipt Limits and giving restrictions
• Refund to all contributors on a pro-rated basis
• Turn funds over to the New York State General Fund
• Funds can be contributed to a charity recognized by the IRS but not to a charity where the committee treasurer, candidate, committee member, or a member of their families controls the charity or has decision-making powers therein.

Treasurer Resignation

As with terminating a committee, a formal process must be used when a treasurer wishes to resign. Sometimes treasurers do not follow this process, and although they believe they are "‘no longer the treasurer," the New York State Board of Elections (NYSBOE) still has them listed as the active treasurer or the treasurer of record. As a result, this treasurer may be contacted by the NYSBOE Division of Election Law Enforcement (DELE) regarding enforcement matters. Such matters include missing campaign finance disclosure statements, deficient campaign finance disclosure statements, and complaints that have been received.

To request resignation as treasurer, the treasurer needs to submit a Termination or Resignation Request Form/No-Activity Report Form (CF-18) to the New York State Board of Elections (NYSBOE). After receipt of the CF-18, the NYSBOE Compliance Unit will review the committee records to determine that all required criteria have been met and that the treasurer is, therefore, eligible for resignation. To successfully resign as treasurer, the following criteria must be met:

• All required campaign finance disclosure statements have been filed
• No negative balances are reflected on any campaign finance disclosure statements in the NYSBOE Electronic Filing System
• Attach a letter of resignation
• Inform committee/candidate, as applicable.

Submitting the CF-18 does NOT mean that the treasurer has officially resigned. Until you receive confirmation from NYSBOE that the resignation request was successful, the treasurer is still considered to be the active treasurer/treasurer of record and is legally obligated to file campaign financial disclosure statements. If the Compliance Unit’s review determines that the treasurer is eligible for resignation, a successful Treasurer Resignation Letter will be sent. It is at this point that the treasurer’s legal obligation to file campaign finance disclosure statements for the committee ceases.

In the event that a termination request is denied, you will receive information regarding what needs to be rectified for the treasurer to qualify for resignation. After the issues identified have been addressed, another CF-18 must be filed with NYSBOE. Please note that there is a statutory requirement that all political committee records be maintained for five years. See NYS Election Law § 14-188(1)

• For more information about resigning as treasurer, please see the Resignation/Termination page on the NYSBOE website.

Removal of a Treasurer

Sometimes a committee’s treasurer may need to be removed as the active treasurer/treasurer of record. This could be for several reasons, including the death of the treasurer, the treasurer being non-responsive to the candidate or other committee members, the refusal to fulfill legal requirements as treasurer, etc. A candidate has the option of designating a committee of no less than three persons who shall be authorized to appoint and remove the treasurer of any authorized committee of the candidate. The designation or revocation of the committee shall be evidenced in a writing filed with the New York State Board of Elections (NYSBOE) by the candidate authorizing the committee. The candidate may revoke such designation at any time. Contact NYSBOE at 1-800-458-3453 or 518-474-8200 or [email protected] for further guidance. See NYS Election Law § 14-104(1).