Sec. 21a-190c. Annual financial reports. Fiscal records. (a) Every charitable
organization required to register pursuant to section 21a-190b shall annually file with
the department a report for its most recently completed fiscal year, which report shall
include a financial statement and such other information as the commissioner may require. Such charitable organization shall file such report not more than five months
following the close of its fiscal year, which report shall be accompanied by a fee of
twenty-five dollars and shall be signed by two authorized officers of the organization,
one of whom shall be the chief fiscal officer of the organization. Such officers shall
certify that such report is true and correct to the best of their knowledge. The commissioner shall prescribe the form of the report and may prescribe standards for its completion. The commissioner may accept, under such conditions as said commissioner may
prescribe, a copy or duplicate original of financial statements, reports or returns filed
by the charitable organization with the Internal Revenue Service or another state having
requirements similar to the provisions of sections 21a-190a to 21a-190l, inclusive.
(b) A charitable organization with gross revenue in excess of two hundred thousand
dollars in the year covered by the report shall include with its financial statement an
audit report of a certified public accountant. For purposes of this section, gross revenue
shall not include grants or fees from government agencies or the revenue derived from
funds held in trust for the benefit of the organization.
(c) The commissioner may, upon written request and for good cause shown, grant
an extension of time, not to exceed three months, for the filing of such report.
(d) An additional late filing fee of twenty-five dollars shall accompany any report
which is not filed in a timely manner.
(e) Every charitable organization required to file an annual report and every charitable organization subject to the provisions of subdivision (6) of section 21a-190d shall
keep true fiscal records which shall be available to the department for inspection upon
request. Such organization shall retain such records for no less than three years after
the end of the fiscal year to which they relate.
(P.A. 86-369, S. 3; P.A. 00-217, S. 1; P.A. 01-195, S. 90, 181.)
History: P.A. 00-217 amended Subsec. (b) by replacing "one hundred thousand dollars" with "two hundred thousand
dollars" and excluding from gross revenue "the revenue derived from funds held in trust for the benefit of the organization";
P.A. 01-195 made a technical change in Subsec. (a) for the purposes of gender neutrality, effective July 11, 2001.
Cited. 219 C. 384, 387.
Sec. 21a-190d. Charitable organizations exempted from registration and financial disclosure requirements. The following charitable organizations shall not be
subject to the provisions of sections 21a-190b and 21a-190c, provided each such organization shall submit such information as the department may require to substantiate an
exemption under this section:
(1) Any duly organized religious corporation, institution or society;
(2) Any parent-teacher association or educational institution, the curricula of which
in whole or in part are registered or approved by any state or the United States either
directly or by acceptance of accreditation by an accrediting body;
(3) Any nonprofit hospital licensed in accordance with the provisions of section
19a-630 or any similar provision of the laws of any other state;
(4) Any governmental unit or instrumentality of any state or the United States;
(5) Any person who solicits solely for the benefit of organizations described in
subdivisions (1) to (4), inclusive, of this section; and
(6) Any charitable organization which normally receives less than fifty thousand
dollars in contributions annually, provided such organization does not compensate any
person primarily to conduct solicitations.
(P.A. 86-369, S. 4; P.A. 00-217, S. 2.)
History: P.A. 00-217 amended Subdiv. (6) by changing "twenty-five thousand dollars" to "fifty thousand dollars".
Sec. 21a-190e. Fund-raising counsel. Filing of contracts. Registration of fund-raising counsel. Fees. Bond. Accounting for funds received. (a) Each contract between a charitable organization and a fund-raising counsel shall be in writing and shall
be filed by the fund-raising counsel with the department at least fifteen days prior to
the performance by the fund-raising counsel of any material services pursuant to such
contract. The contract shall contain such information as will enable the department
to identify the services the fund-raising counsel is to provide and the manner of his
compensation.
(b) A fund-raising counsel who at any time has custody or control of contributions
from a solicitation shall register with the department. Applications for registration or
renewal of a registration as a fund-raising counsel shall be in writing, under oath, in the
form prescribed by the department and shall be accompanied by a fee in the amount of
one hundred twenty dollars. Each application shall contain such information as the
department shall require. Each registration shall be valid for one year and may be renewed for additional one-year periods. An applicant for registration or for a renewal of
registration as a fund-raising counsel shall, at the time of making such application, file
with and have approved by the department a bond, in which the applicant shall be the
principal obligor in the sum of twenty thousand dollars, with one or more responsible
sureties whose liability in the aggregate as such sureties shall be no less than such sum.
The fund-raising counsel shall maintain the bond in effect as long as the registration is
in effect. The bond shall run to the state and to any person who may have a cause of
action against the principal obligor of the bond for any liabilities resulting from the
obligor's conduct of any activities subject to sections 21a-190a to 21a-190l, inclusive,
or arising out of a violation of said sections or any regulation adopted pursuant to said
sections. Any such fund-raising counsel shall account to the charitable organization
with which he has contracted for all income received and expenses paid no later than
ninety days after a solicitation campaign has been completed, and in the case of a solicitation campaign lasting more than one year, on the anniversary of the commencement of
such campaign. Such accounting shall be in writing, shall be retained by the charitable
organization for three years and shall be available to the department upon request.
(P.A. 86-369, S. 5; P.A. 89-251, S. 153, 203; P.A. 94-36, S. 29, 42.)
History: P.A. 89-251 increased the registration fee from one hundred dollars to one hundred twenty dollars; P.A. 94-36 amended Subsec. (b) to eliminate the language requiring "application and payment of fee" from the registration renewal
process, effective January 1, 1995.
See Sec. 21a-10(b) re staggered schedule for registration renewals.
Sec. 21a-190f. Paid solicitors. Registration. Fees. Bond. Filing of contracts.
Solicitation notice. Contract requirements. Disclosures at point of solicitation. Prohibited practices. Records. Deposit of funds. (a) No person shall act as a paid solicitor
unless he has first registered with the department. Applications for registration and for
the renewal of a registration shall be in writing, under oath, in the form prescribed by
the department and shall be accompanied by a fee in the amount of one hundred twenty
dollars. The application shall contain such information as the department shall require.
Each registration shall be valid for one year and may be renewed for additional one-year periods.
(b) An applicant for registration or for a renewal of registration as a paid solicitor
shall, at the time of making such application, file with and have approved by the department a bond, in which the applicant shall be the principal obligor in the sum of twenty
thousand dollars, with one or more responsible sureties whose liability in the aggregate
as such sureties shall be no less than such sum. The paid solicitor shall maintain the
bond in effect as long as the registration is in effect. The bond shall run to the state and
to any person who may have a cause of action against the principal obligor of the bond
for any liabilities resulting from the obligor's conduct of any activities subject to sections
21a-190a to 21a-190l, inclusive, or arising out of a violation of said sections or any
regulation adopted pursuant to said sections.
(c) No less than twenty days prior to the commencement of each solicitation campaign, a paid solicitor shall file with the department a copy of the contract described in
subsection (d) of this section and shall file a completed solicitation notice on forms
prescribed by the department. A solicitation notice shall be in writing and under oath,
and shall include a description of the solicitation event or campaign, the location and
telephone number from which the solicitation is to be conducted, the names and residence addresses of all employees, agents or other persons however styled who are to
solicit during such campaign and the account number and location of all bank accounts
where receipts from such campaign are to be deposited. Copies of campaign solicitation
literature, including the text of any solicitation to be made orally, shall be attached to
the solicitation notice. The charitable organization on whose behalf the paid solicitor is
acting shall certify that the solicitation notice and accompanying material are true and
complete.
(d) A contract between a paid solicitor and a charitable organization shall be in
writing, shall clearly state the respective obligations of the paid solicitor and the charitable organization and shall state the minimum amount which the charitable organization
shall receive as a result of the solicitation campaign, which minimum amount shall be
stated as a percentage of the gross revenue. Such minimum amount shall not include
any amount which the charitable organization is to pay as expenses of the solicitation
campaign.
(e) A paid solicitor shall, prior to orally requesting a contribution, and at the same
time at which a written request for a contribution is made, clearly and conspicuously
disclose at the point of solicitation his name as on file with the department, the fact
that he is a paid solicitor and the percentage of the gross revenue which the charitable
organization shall receive as identified in subsection (d) of this section.
(f) A paid solicitor shall, in the case of a solicitation campaign conducted orally,
whether by telephone or otherwise, send a written confirmation to each person who has
pledged to contribute, no more than five days after such person has been solicited,
which confirmation shall include a clear and conspicuous disclosure of the information
required by subsection (e) of this section.
(g) A paid solicitor shall not represent that any part of the contributions received
will be given or donated to any charitable organization unless such organization has
consented in writing to the use of its name, prior to the solicitation. Such written consent
shall be signed by two authorized officers, directors or trustees of the charitable organization.
(h) No paid solicitor shall represent that tickets to an event are to be donated for
use by another, unless the paid solicitor has first obtained a commitment, in writing,
from a charitable organization stating that it will accept donated tickets and specifying
the number of tickets which it is willing to accept and provided no more contributions
for donated tickets shall be solicited than the number of ticket commitments received
from the charitable organization.
(i) A paid solicitor shall require any person he directly or indirectly employs, procures or engages to solicit to comply with the provisions of subsections (e) to (h), inclusive, of this section.
(j) A paid solicitor shall file a financial report for the campaign with the department
no more than ninety days after a solicitation campaign has been completed, and on the
anniversary of the commencement of any solicitation campaign which lasts more than
one year. The financial report shall include gross revenue and an itemization of all
expenditures incurred. The report shall be completed on a form prescribed by the department. An authorized official of the paid solicitor and two authorized officials of the
charitable organization shall sign such report and they shall certify, under oath, that
such report is true and complete to the best of their knowledge.
(k) A paid solicitor shall maintain during each solicitation campaign and for not
less than three years after the completion of each such campaign the following records,
which shall be available to the department for inspection upon request: (1) The name
and address of each contributor and the date and amount of the contribution, provided
the department shall not disclose this information except to the extent necessary for
investigative or law enforcement purposes; (2) the name and residence of each employee,
agent or other person involved in the solicitation; and (3) records of all income received
and expenses incurred in the course of the solicitation campaign.
(l) If a paid solicitor sells tickets to an event and represents that tickets will be
donated for use by another, the paid solicitor shall maintain, for not less than three years
after the completion of such event, the following records, which shall be available to
the department for inspection upon request: (1) The name and address of contributors
donating tickets and the number of tickets donated by each contributor; and (2) the name
and address of all organizations receiving donated tickets for use by others, including
the number of tickets received by each organization.
(m) All funds collected by the paid solicitor shall be deposited in a bank account.
The bank account shall be in the name of the charitable organization with whom the
paid solicitor has contracted and the charitable organization shall have sole or joint
control of the account.
(n) Any material change in any information filed with the department pursuant to
this section shall be reported in writing by the paid solicitor to the department not more
than seven days after such change occurs.
(o) No person may act as a paid solicitor if such person, any officer or director
thereof, any person with a controlling interest therein, or any person the paid solicitor
employs, engages or procures to solicit for compensation, has been convicted by a court
of any state or the United States of any felony, or of any misdemeanor involving dishonesty or arising from the conduct of a solicitation for a charitable organization or purpose.
Any denial, suspension or revocation of the registration of a paid solicitor based on a
violation of this subsection shall be made in accordance with the provisions of section
46a-80.
(P.A. 86-369, S. 6; P.A. 89-251, S. 154, 203; P.A. 94-36, S. 30, 42.)
History: P.A. 89-251 increased the registration fee from one hundred dollars to one hundred twenty dollars; P.A. 94-36 amended Subsec. (a) to eliminate the "application and payment of the fee" requirements from the registration renewal
procedure, effective January 1, 1995.
See Sec. 21a-10(b) re staggered schedule for registration renewals.
Sec. 21a-190g. Commercial coventurers. Filing of contracts. Terms. Accounting. Disclosures required in advertising. (a) Every charitable organization which
agrees to permit a charitable sales promotion to be conducted in its behalf, shall obtain
a written agreement from the commercial coventurer and file a copy of such agreement
with the department not less than ten days prior to the commencement of the charitable
sales promotion within this state. An authorized representative of the charitable organization and the commercial coventurer shall sign such agreement and the terms of such
agreement shall include the following: (1) The goods or services to be offered to the
public; (2) the geographic area where, and the starting and final date when, such offering
is to be made; (3) the manner in which the name of the charitable organization is to be
used, including any representation to be made to the public as to the amount or per
cent per unit of goods or services purchased or used that is to benefit the charitable
organization; (4) a provision for a final accounting on a per unit basis to be given by
the commercial coventurer to the charitable organization and the date when it is to be
made; and (5) the date when and the manner in which the benefit is to be conferred on
the charitable organization.
(b) A commercial coventurer shall keep the final accounting for each charitable
sales promotion for three years after the final accounting date and such accounting shall
be available to the department upon request.
(c) A commercial coventurer shall disclose in each advertisement for a charitable
sales promotion the amount per unit of goods or services purchased or used that is to
benefit the charitable organization or purpose. Such amount may be expressed as a dollar
amount or as a percentage of the value of the goods or services purchased or used.
(P.A. 86-369, S. 7.)
Sec. 21a-190h. Prohibited acts. It shall be a violation of sections 21a-190a to 21a-190l, inclusive, for: (1) Any person to misrepresent the purpose or beneficiary of a
solicitation; (2) any person to misrepresent the purpose or nature of a charitable organization; (3) any charitable organization to engage in any financial transaction which is not
related to the accomplishment of its charitable purpose, or which jeopardizes or interferes with the ability of the charitable organization to accomplish its charitable purpose;
(4) any charitable organization to expend an unreasonable amount of money for solicitation or management; (5) any person to use or exploit the fact of registration so as to lead
the public to believe that such registration constitutes an endorsement or approval by
the state; (6) any person to misrepresent that any other person sponsors or endorses a
solicitation; (7) any person to use the name of a charitable organization, or to display
any emblem, device or printed matter belonging to or associated with a charitable organization without the express written permission of the charitable organization; (8) any
charitable organization to use the name which is the same as or confusingly similar to
the name of another charitable organization unless the latter organization shall consent
in writing to its use; (9) any charitable organization to represent itself as being associated
with another charitable organization without the express written acknowledgment and
endorsement of such other charitable organization; (10) any person to make any false
or misleading statement on any document required by sections 21a-190a to 21a-190l,
inclusive; (11) any person to fail to comply with the requirements of sections 21a-190b to 21a-190g, inclusive; (12) any charitable organization to use the services of an
unregistered fund-raising counsel or paid solicitor; (13) any fund-raising counsel or paid
solicitor to perform any services on behalf of an unregistered charitable organization.
(P.A. 86-369, S. 8; P.A. 94-165.)
History: P.A. 94-165 inserted new Subdiv. (9) re actions of charitable organizations, renumbering remaining Subdivs.
as necessary.
Sec. 21a-190i. Investigations. Subpoenas. Court orders. (a) The department, on
its own motion or on complaint of any person, may conduct an investigation to determine
whether any person has violated or is about to violate any provision of sections 21a-190a to 21a-190l, inclusive.
(b) The commissioner or his authorized representative may subpoena documentary
material relating to any matter under investigation, issue subpoenas to any person involved in or who may have knowledge of any matter under investigation, administer an
oath or affirmation to any person and conduct hearings on any matter under investigation.
(c) If any person fails to obey any subpoena issued by the commissioner or his
authorized representative pursuant to this section, the commissioner may, after notice,
apply to the superior court for the judicial district of Hartford, which court, after a hearing
thereon, may issue an order requiring such person to obey such subpoena or any part
thereof, together with such other relief as may be appropriate. Any disobedience of any
order entered under this section by any court shall be punished as a contempt thereof.
(P.A. 86-369, S. 9; P.A. 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; P.A. 93-142, S. 4, 7, 8; P.A. 95-220, S. 4-6.)
History: P.A. 88-230 replaced "judicial district of Hartford-New Britain" with "judicial district of Hartford", effective
September 1, 1991; P.A. 90-98 changed the effective date of P.A. 88-230 from September 1, 1991, to September 1, 1993;
P.A. 93-142 changed the effective date of P.A. 88-230 from September 1, 1993, to September 1, 1996, effective June 14,
1993; P.A. 95-220 changed the effective date of P.A. 88-230 from September 1, 1996, to September 1, 1998, effective
July 1, 1995.
Sec. 21a-190j. Time limit for compliance. Section 21a-190j is repealed, effective
October 1, 2002.
(P.A. 86-369, S. 10; S.A. 02-12, S. 1.)
Sec. 21a-190k. Regulations. The commissioner may adopt regulations in accordance with the provisions of chapter 54 in order to carry out the provisions of sections
21a-190a to 21a-190l, inclusive.
(P.A. 86-369, S. 11.)
Sec. 21a-190l. Denial, suspension, revocation of registration. Court-ordered
relief. Penalties. (a) The commissioner may deny, suspend or revoke the registration
of any charitable organization, fund-raising counsel or paid solicitor which has violated
any provision of sections 21a-190a to 21a-190l, inclusive. The commissioner may accept
a written assurance of compliance when said commissioner determines that a violation
of said sections is not material and that the public interest would not be served by a
denial, suspension or revocation of such registration.
(b) The Attorney General, at the request of the commissioner, may apply to the
Superior Court for, and the court may grant, a temporary injunction or a permanent
injunction to restrain violations of sections 21a-190a to 21a-190l, inclusive, the appointment of a receiver, an order of restitution, an accounting and such other relief as may
be appropriate to ensure the due application of charitable funds. Proceedings thereon
shall be brought in the name of the state.
(c) Any person who knowingly violates any provision of sections 21a-190a to 21a-190l, inclusive, shall be fined not more than five thousand dollars or imprisoned not
more than one year, or both.
(d) In any action brought under subsection (b) of section 21a-190l, if the court
finds that a person has wilfully engaged in conduct prohibited by section 21a-190h, the
Attorney General, upon petition to the court, may recover, on behalf of the state, a civil
penalty of not more than two thousand five hundred dollars for each violation. For
purposes of this subsection, a wilful violation occurs when the party committing the
violation knew or should have known that such conduct was prohibited by section
21a-190h.
(P.A. 86-369, S. 12; P.A. 00-217, S. 3; P.A. 01-195, S. 91, 181.)
History: P.A. 00-217 amended Subsec. (c) by inserting "knowingly" and changing fine from one thousand to five
thousand dollars and added Subsec. (d) re civil penalty for wilful violation; P.A. 01-195 made a technical change in Subsec.
(a) for the purposes of gender neutrality, effective July 11, 2001.