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A 7164

Prohibits charitable organizations from using charitable donations for confidentiality agreements or closed settlement agreements

2025 Regular Session Introduced by Rodneyse Bichotte Hermelyn

Prohibits charities from using donated funds for confidentiality agreements or closed settlements, boosting transparency and preventing donor dollars from hiding settlements.

REFERRED TO GOVERNMENTAL OPERATIONS
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Bill Summary · A 7164

Summary of Assembly Bill A 7164 (2025)

Overview

  • Bill Number: A 7164
  • Title: Prohibits charitable organizations from using charitable donations for confidentiality agreements or closed settlement agreements
  • Sponsor: Rodneyse Bichotte Hermelyn (primary)
  • Introduced: March 21, 2025
  • Status: Referred to the Assembly Committee on Governmental Operations (2025-03-21)
  • Related/Companion Legislation: S 4132 (companion; multiple prior-session related bills listed), several prior-session Senate bills (e.g., S 1819, S 829, S 1236, S 1343, S 1805, S 3464, S 4617, S 5019, S 4132)

Purpose and Intent

  • The bill aims to restrict how charitable organizations may use donations. Specifically, it prohibits using charitable contributions to fund confidentiality agreements or closed settlement agreements. The intent appears to be to increase transparency and reduce the use of donor funds to hide settlements or otherwise keep matters confidential.

Key Provisions (as inferred from the title and summary)

  • Charitable organizations receiving donations may be barred from allocating or using those funds to enter into or sustain confidentiality agreements (NDAs) or closed settlements.
  • The measure would ensure that donated funds are not used to suppress disclosure of information or to conceal settlements related to charitable activities, misconduct, or other matters requiring openness.
  • The exact definitions (e.g., what constitutes a confidentiality agreement, what kinds of settlements are covered, and any exemptions) and enforcement mechanisms would be detailed in the bill’s full text.

Affected Parties

  • Charitable organizations operating within the jurisdiction of the bill (likely New York, given the Assembly numbering and sponsor).
  • Donors and recipient entities who rely on charitable gifts may be affected by restrictions on how funds can be used.
  • Potentially, individuals involved in settlements or confidential settlements related to charity operations could see increased transparency requirements.

Procedural and Timeline Aspects

  • Introduced and immediately referred to the Assembly Committee on Governmental Operations on March 21, 2025.
  • The bill has a companion in the Senate (S 4132) and several related bills from prior sessions, indicating ongoing interest in reforming confidentiality and settlement practices in the charitable sector.
  • No further action details (hearings, amendments, votes) are provided in the available information.

Potential Impact and Implications

  • Promotes transparency in how charitable donations are used, potentially reducing secrecy around settlements connected to charitable activities.
  • Could lead to changes in grantmaking policies, donor communications, and how charities structure settlements or confidentiality clauses.
  • May require charities to revise internal policies, financial controls, and reporting to ensure compliance with the prohibition.
  • Enforcement provisions and penalties, if any, would be specified in the bill text and would shape practical impact.

Next Steps for Readers

  • Monitor for committee hearings and amendments in the Governmental Operations committee.
  • Review the full bill text once available to understand definitions, exemptions, and enforcement details.
  • Consider the companion Senate bill (S 4132) for alignment and potential passage in the other chamber.

Compiled from official sources — confirm details with the bill’s official record.

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