In an effort to restrict the potential for quid-pro-quo corruption, companies or individuals who are doing, or seeking to do, business with New York City are barred by city law from donating more than $400 to city candidates running in any election cycle.
Larger campaign contributions can be made to independent expenditure committees — essentially New York's version of super PACs — which allow well-heeled political donors to give unlimited amounts of money to the candidate of their choice.
According to The City, former Democrat Gov. Andrew Cuomo has received nearly $2.7 million in donations for this year's race from those on the "doing business" list through Fix the City, an independent expenditure committee that is aggressively supporting his bid for New York City mayor.
In its analysis, the outlet found that 24 entities currently on the "doing business" list wrote checks to Fix the City, ranging from $5,000 to $1 million. Most of the contributions were reportedly in the $150,000 to $250,000 range.
On the corporation side, donors include DoorDash, which gave $1 million; Lyft, which gave $25,000; Charter Communications, which gave $125,000; and major real estate developers, the Durst Organization, which gave $100,000, and Two Trees Management, which gave $250,000.
According to the New York City Campaign Finance Board, these entities are barred from giving donations of any amount to political campaigns.
Of the individuals who contributed, each of them would have been restricted to making a $400 donation if they gave directly to Cuomo's campaign. The City reported that three of the individual donors donated $400 to Cuomo directly before writing larger checks to Fix the City.
Campaigns are reportedly not permitted to direct their donors to give to the independent spending committees that support their candidate, and The City did not find any evidence that Cuomo's campaign violated that prohibition.
But Cuomo's campaign and Fix the City were accused of improper coordination last month when the city Campaign Finance Board withheld nearly $1.3 million in matching public funds over a Fix the City ad promoting Cuomo's candidacy that was almost identical to language used on the official campaign website.
There are a number of things campaigns and independent expenditure committees are allowed to discuss, including the logistics of a candidate's appearance at a nonfundraising event, the candidate's endorsement process and obtaining or republishing a candidate's promotional materials.
However, independent organizations like Fix the City cannot coordinate their activities with a candidate or a campaign.
Cuomo campaign spokesman Rich Azzopardi told The City that the campaign has "no insight into what Fix the City does" and directed the outlet to "refer questions to them."
Angelo Genova, counsel for Fix the City, told The City that the independent expenditure committee "complies with all relevant Campaign Finance Board rules and encourages and expects our donors and vendors to strictly comply with the no coordination and other rules of the CFB."
"From its inception, Fix the City has retained counsel and fiscal professionals to ensure compliance on a daily basis," Genova added.
Fix the City's website states that "there are no contribution limits, and those 'doing business' with New York City are not prohibited from contributing." It also advises would-be donors that "individuals, corporations, LLCs, LPs, and other entities are permitted to contribute."
Nicole Weatherholtz ✉
Nicole Weatherholtz, a Newsmax general assignment reporter covers news, politics, and culture. She is a National Newspaper Association award-winning journalist.