charitable solicitors;
disclosure and responsibility
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Committee on Human Services |
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Committee on Commerce & Economic Development |
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Caucus and COW |
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Third Read |
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As Passed the House |
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Charitable
Organizations
· Allows a parent organization, before soliciting first contribution, to file a consolidated statement on behalf of its chapters, branches or affiliates to the Secretary and specifies that if a consolidated statement is not filed, then each chapter, branch or affiliate must file a separate statement.
· Stipulates that each federated fundraising independent member organization must independently file with the Secretary.
· Requires the Secretary to prescribe the registration statement form and allows for all or part of the statement to be submitted electronically.
· Specifies the registration statement shall include the following information of the charitable organization:
Ø Name, purpose, and name in which the organization intends to solicit contributions and how contributions will be used.
Ø Principal street address and telephone number of organization, chapter, branch, affiliate, or, if not located in Arizona, the same information for the financial records person.
Ø Names and street addresses of officers, members and employees.
Ø A statement of the organization’s experience, affiliation with other organizations, officers, unlawful practices and convictions, prescribed financial information, and any other information the Secretary may require.
· Requires the Secretary to inform the organization within 10 days of any errors, and after 30 days if errors are not remedied, the Secretary shall inform the organization of its failure to file. The organization has 30 more days to comply in order to continue soliciting. If compliance does not occur, the Secretary shall deny or revoke the registration of the organization.
· Requires a charitable organization to control fundraising activities, comply with registration statement, and contract only with registered fund raisers.
Contracted Fund Raisers
· Requires a contracted fund raiser to register with the Secretary prior to soliciting for an organization and specifies a registration is valid for one year and may be renewed.
· Specifies the contracted fund raiser registration application shall include the following information:
Ø Official name, address, telephone number, name in which applicant will operate.
Ø Name, address and telephone numbers of officers, board members, and shareholders and if any parent, spouse, child or sibling is affiliated with organization or vendor.
Ø Past unlawful practices and convictions.
Ø Name and address of each subsidiary or parent corporations.
Ø Fund raisers in other states and prescribed information and any other information the Secretary requires.
· Requires contracted fund raiser to submit with application $25 and an approved bond that specifies the fund raiser as the obligor of $25,000 with prescribed sureties.
· Stipulates the maintenance and use of the bond and requires the Secretary to notify applicant within 10 days of receipt of any deficiencies.
Contract Between Charitable Organizations and Contracted Fund
Raisers
· Requires a contracted fund raiser to have a written contract with a charitable organization prior to soliciting contributions and stipulates the following information shall be included in the contract:
Ø Statement of purpose, program, effective dates and respective obligations of both the fund raiser and organization.
Ø Statement of the percentage of prescribed proceeds remitted to the organization.
Ø
Statement of gross revenue percentage or estimate the
fund raiser will be compensated, and stipulates the disclosure of estimate
assumptions.
Solicitation Notice
· Requires fund raiser 15 days prior to soliciting to file with Secretary a solicitation notice.
· Stipulates the solicitation notice shall include the following:
Ø Copy of contract, description and methods of solicitation campaign, and beginning and end dates.
Ø Statement of percentage amount committed to organization.
Ø Location and telephone number from which soliciting will take place.
Ø Copy of printed advertisements.
Ø Information for each person supervising the solicitation campaign including name, address, telephone number, compensation arrangements, previous unlawful solicitation practices and convictions and incarcerations.
Ø Account numbers and locations where receipts from the campaign will be deposited.
Ø Description of charitable program and activities of campaign and organization.
· Requires the Secretary to examine each notice and notify of deficiencies within 10 days.
· Stipulates a contracted fund raiser is responsible for making sure that misrepresentation of where the funds will be donated, unless that organization has consented in writing to its name use, does not occur and that donated tickets are not solicited in excess of availability.
· Specifies that each collected contribution of the fund raiser must be solely in the name of the organization and states that within two days of contribution receipt the fund raiser shall deposit the money into an approved bank or financial institution. The account must be in the name of the organization and the organization shall have sole withdrawal privileges, unless consent is given.
Records of Contracted Fund Raisers
· Requires the fund raiser to file a campaign finance report, including gross revenue and expenses within 90 days of the campaign completion or on the anniversary date of start if lasting more than a year.
· Requires the fund raiser to maintain during and at least three years following a campaign the following records:
Ø Name and address of each person pledging to contribute [if known], the pledged and actual amount received and respective dates, and the address and phone number of each contributor.
Ø Name and address for each employee or person involved in the campaign, compensation paid to each and dates of payments.
Ø All contributions in custody of fund raiser at any time, incurred expenses of organization and fund raiser.
Ø Location and account numbers of all banks or financial institutions where funds were deposited.
Ø Dates and payment amounts by the fund raiser to the organization.
Ø Copy of script used in oral solicitations and copies of printed advertisements.
Ø Prescribed information for ticket sales.
· Stipulates that all records shall be available for inspection at the request of the Secretary.
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Requires any changes with the fund raiser registration
to be reported in writing within 60 days of the change in accordance with prescribed
adopted rules.
Disclosure Requirements of Contracted Fund Raiser
· Stipulates that before orally requesting a contribution or pledge, a fund raiser solicitor must state the percentage of monies the organization will receive and how much the donor may deduct on federal taxes and whether or not the fund raiser is a nonprofit corporation.
· Prescribes a written statement that must be provided to each person contributing or pledging monies.
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States that any one-sixth of any printed advertisement
soliciting tangible property shall disclose the percentage of liquidated value
that will be remitted to the organization.
Public Information
· Requires the Secretary to develop a plan to help the public recognize fraudulent solicitations and make informed contribution decisions.
· Stipulates the plan shall include the following information:
Ø Laws governing solicitations.
Ø Business practices of fund raisers.
Ø A system for reporting violations or filing complaints.
Ø Any other information the Secretary deems necessary.
Unlawful Practices
· Makes it unlawful and prescribes a Class 1 misdemeanor for the following:
Ø Knowingly using a name, symbol, emblem, device, service mark or similar likeness to such that is associated with another organization, unless that organization consents.
Ø Soliciting contributions on behalf of a non-registered organization.
Ø Falsely stating for whom the contributions are being solicited.
Ø Using any deceptive device when soliciting including making reference to this act unless inquired of by the donor.
Ø Failing to apply contributions consistent with the solicitation.
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45th Legislature
Second Regular Session 3 January 28, 2002
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