ELEC Pay to Play Filing Tips

Online report deadline extended to January 15, 2008

(updated 11/29/07)

Under regulations adopted March 2007 by the Election Law Enforcement Commission (ELEC), non-profits that received $50,000 or more in government contracts in 2006 are required to complete an online filing to disclose the "reportable" individual political contributions made by their CEO, board members, officers, and respective spouses. ELEC's filing deadline for non-profit filers has been extended from November 30, 2007, to January 15, 2008. This is the third (and likely the last) filing extension granted by ELEC to non-profits. (see this article for more information)

As the Center has reported previously, although 501(c)(3) organizations are themselves prohibited from donating to political campaigns or otherwise promoting or opposing candidates for public office, the New Jersey Department of Treasury, the New Jersey Department of Community Affairs and the New Jersey Election Law Enforcement Commission have issued guidelines that state that parts of the new laws do, in fact, apply to non-profits, including charities.

The Center for Non-Profits has developed a sample form that non-profits can modify for their use to request the needed information from their board members, officers and respective spouses. Non-profits can request a copy by sending an e-mail with to center@njnonprofits.org with "Pay to Play Sample Forms" in the subject line. Be sure to include your organization's name in your request.

The Center has argued vigorously against including non-profits in the disclosure requirement, and will continue to seek changes to remedy what we see as a significant flaw in the pay-to-play regulations. In the meantime, ELEC is unlikely to grant another filing extension, and we are recommending that non-profits gather the necessary information now in preparation for the online ELEC filing.

For additional background on the pay-to-play issue, visit the Center's web site at www.njnonprofits.org/Advocacy.html . If you have questions, contact Linda Czipo at the Center.

Some Tips for the ELEC Pay-to-Play Filing

• ELEC's filing deadline for non-profits has been extended from November 30, 2007, to January 15, 2008. This is the second (and likely the last) filing extension granted by ELEC to non-profits.
• The ELEC filing can only be done online. To access the ELEC forms and filing instructions, visit the ELEC Web site at https://wwwnet1.state.nj.us/lpd/elec/ptp/p2p.html .
• The ELEC pay to play filing requirement only applies to organizations that received $50,000 or more in government contract payments during the previous calendar year. Contracts that must be counted toward this total include State (including some federal pass-throughs), county, local, legislative, school or fire districts.
• The ELEC disclosure covers political contributions made by "principals, partners, officers, or directors" and their respective spouses. Individuals who would be covered include board members, the chief executive, vice presidents "with senior management responsibility" and any other staff who are corporate officers.
• The disclosure requirement is generally NOT intended to apply to the various other staff members whose title may include the word "director" (e.g., director of development, program director, etc.), unless they also have another role (officer, board member) within the organization. Additionally, advisory board members, emeritus members, and others with purely honorary designations are not intended to be covered if there is no voting or formal decision-making authority with the organization. Check with ELEC if you have any questions about whether a particular individual should be included.
• If a board member or covered staff member served in that capacity for only a portion of the reporting period, only the contributions made during their period of service to the organization need be disclosed. For example, if a board member resigned in May of 2006 but made contributions in October, the October contributions are not subject to disclosure to ELEC. Similarly, an individual who joined a board in 2007 but who was not on the organization's board in 2006 would not have to be included in the November 30 filing, which only covers calendar year 2006.
• Although the organization will need to collect documentation from all board members, officers and spouses, when the organization completes the ELEC filing online, it will only need to submit information for those individuals who actually made reportable campaign contributions during the reporting period.
• "Reportable contributions" are those in excess of $300.00 in the aggregate per election made to or received by a candidate committee, joint candidates committee, or political committee; or $300 in the aggregate per calendar year made to or received by a political party committee, legislative leadership committee, or continuing political committee. Contributions made to federal candidates or campaigns (e.g., United States President, United States Senator, U. S. House of Representatives/Congress) are NOT covered by the ELEC pay to play disclosure requirement.
• The threshold for reportable contributions is $300 per person per household. Note that the primary election and general election are considered two separate elections for ELEC reporting purposes.

NJ Government Pay to Play Web Sites

NJ Department of Community Affairs - County and Local Pay to Play Information: http://www.nj.gov/dca/lgs/p2p/

NJ Department of Treasury - State Pay to Play Information: http://www.state.nj.us/treasury/purchase/execorder134.htm

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