The New York State Assembly approved unanimously yesterday a bill which would require every charitable organization in the state to account in its fund-raising literature for how its funds were used.
The measure was sponsored by William Passannante, a Manhattan Democrat, Similar proposals have been introduced in previous legislative sessions but have been blocked by the concerted opposition of charitable organizations. The Assembly approved a similar measure last year but it died in the State Senate. Prospects for Senate passage this year are regarded as improved.
The bill would require that fund-raising material indicate how much money was raised by the group in the prior year and how much was actually spent for the purpose for which it was sought. Present New York state law contains few provisions to penalize charities which spend most of their money on various administrative costs, including salaries. Small charities and religious and educational charitable groups do not have to register and file reports with the New York State Department of Social Welfare.
Mr. Passannante has sponsored another bill, jointly with State Senator William E. Adams, which would require the Social Welfare Department to make public the names and financial data of every charity which spends less than 50 percent of the money it raises on charitable purposes. Sen. Adams is chairman of the Senate Committee on Social Services, which is expected to take up the Assembly-approved Passannante bill soon.
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