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Orem council asks staff to study whether local rules can increase 501(c)(4) disclosure
Summary
After weeks of public concern about a new local 501(c)(4) called Stronger Community and a related PAC, Orem City Council asked staff to research what municipalities can legally require on donor disclosure and whether examples from New York and Connecticut could be adapted locally.
Orem City Councilmembers discussed whether the city can require greater disclosure from 501(c)(4) organizations after residents raised concerns about a local group tied to recent campaign activity.
Councilmembers and staff spent more than an hour reviewing how 501(c)(4) “social welfare” organizations differ from 501(c)(3) charities, the limits on political activity under federal tax rules, and which filings are publicly available. Staff explained that 501(c)(4) entities are not generally required by federal law to disclose donors; they do file a Form 990 with the IRS and may have to file certain reports with the Federal Election Commission if they make political expenditures. Two states — New York and Connecticut — have enacted additional disclosure rules for some categories of organizations, and council members asked staff to examine those laws and any legal risks to a municipal ordinance.
Councilmember Tom McDonald and others said the city’s goal is narrow: give voters better information about who is funding local election-related activity. Several councilmembers and residents described a prior election in which in‑kind contributions tied to a group were not publicly visible until after the vote, producing confusion. Council members repeatedly framed the request as a transparency question, not an accusation of wrongdoing, and asked the city attorney and staff to prepare a report on options and likely legal limits. The council did not adopt an ordinance at the meeting; instead the council asked staff to return with research on (a) what New York and Connecticut require, (b) what Utah law allows, and (c) whether a municipal rule is feasible and defensible.
The discussion included questions about which filings to consult: IRS Form 990 (filed annually), any FEC forms tied to large or late expenditures, and timing of public availability. Staff cautioned that reporting obligations for 501(c)(4) groups are triggered when political expenditures reach specified thresholds, and that deadlines and the specific public filings can vary. Several councilmembers urged a prompt report back so the council would have options before the next major campaign cycle.
What the council directed staff to do: identify the specific disclosure models used in New York and Connecticut, summarize federal filing requirements (including Form 990 and possible FEC filings), outline Utah state law, and explain legal risks and practical consequences if Orem drafted a local disclosure ordinance.
The council did not take a formal vote on an ordinance at this meeting. Staff said they would return with a legal memo and policy options for the council’s consideration.
