You asked for a summary of An Act Strengthening the Solicitation of Charitable Funds Act, SB 510.

SUMMARY

The bill (1) increases the registration fees for charitable organizations from $ 20 to $ 250 and for their paid solicitors from $ 120 to $ 1,000; (2) requires the Department of Consumer Protection (DCP) to publish advertisements about the contracts and pay of paid solicitors and fund-raising counsels before the start of each solicitation campaign; (3) increases reporting requirements for charities; (4) requires a fund-raising counsel's contract to state the amount of his compensation, (5) authorizes the consumer protection commissioner to adopt regulations to enforce, as well as carry out, the provisions of the Solicitation of Charitable Funds Act; and (6) authorizes the consumer protection commissioner to establish a commission to carry out and enforce the provisions of the Solicitation of Charitable Funds Act.

FUND-RAISING CAMPAIGN NOTICES

The bill requires DCP, immediately before the start of a charitable fund-raising campaign, to publish a notice of a contract between a charity and a paid solicitor or fund-raising counsel. The law defines a "paid solicitor" as an organization or person, other than an employee, paid to solicit charitable contributions. It defines "fund-raising counsel" as someone who is paid to manage or consult in relation to a charitable solicitation campaign, but who does not himself solicit funds.

The law requires paid solicitors and fund-raising counsels to file with DCP copies of their contracts with charities before the start of fund-raising campaigns. The bill requires DCP to run advertisements advising of a contract's terms, including the percentage of the raised funds to be kept by the solicitor or counsel. It must be placed in a newspaper having substantial circulation in the area where the campaign will take place. Publication costs must be paid by the solicitor or counsel as a fee when the contract is filed.

REPORTING REQUIREMENTS

All registered charities must report annually on their finances to DCP. The bill requires the report to include an itemized list of all funds raised through fund-raising counsels, paid solicitors, or both and the percentage of these funds kept by or paid to the solicitors and counsels. It specifies that the information in the annual report must be available to the public.

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