PRINTER'S NO. 2431
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1669
Session of
2017
INTRODUCED BY DeLUCA, SAMUELSON, PASHINSKI, V. BROWN, MILLARD,
CALTAGIRONE, ROEBUCK, KORTZ, GILLEN, READSHAW, WATSON, DALEY,
D. COSTA, RAVENSTAHL, CONKLIN, DEAN AND NEILSON,
SEPTEMBER 18, 2017
REFERRED TO COMMITTEE ON STATE GOVERNMENT, SEPTEMBER 18, 2017
AN ACT
Amending the act of December 19, 1990 (P.L.1200, No.202),
entitled "An act providing for the registration and
regulation of solicitations by charitable organizations,
professional fundraisers and other solicitors; imposing
additional powers on the Department of State and the Office
of Attorney General; prescribing civil and criminal
penalties; and making a repeal," further providing for
registration of charitable organizations and financial
reports and fees and failure to file, for limitation on
activities of charitable organizations and disclosure
requirements and for prohibited acts.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 5(e) and 13(a) of the act of December
19, 1990 (P.L.1200, No.202), known as the Solicitation of Funds
for Charitable Purposes Act, are amended to read:
Section 5. Registration of charitable organizations; financial
reports; fees; failure to file.
* * *
(e) Financial report.--
(1) With each registration statement filed under this
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section, a charitable organization must file a financial
report for the immediately preceding fiscal year, which shall
contain a balance sheet and statements of revenue, expenses
and changes in fund balances indicating the organization's
gross revenue, the amount of funds received from
solicitations or other fundraising activities and all
expenditures for supplies, equipment, goods, services,
programs, activities or other expenses, a detailed list of
all salaries and wages paid and expenses allowed to any
officer or employee if the organization is not required to
file an Internal Revenue Service Form 990 and the disposition
of the net proceeds received from solicited contributions or
other fundraising activities.
(2) No charitable organization shall solicit
contributions or have contributions solicited on the
charitable organization's behalf if the charitable
organization fails to expend in the current fiscal year at
least 65% of the charitable organization's gross revenue for
the immediately prior fiscal year on goods or services, as
defined in section 3 of the act of November 26, 1997
(P.L.508, No.55), known as the Institutions of Purely Public
Charity Act, until the department determines that the
charitable organization is expending the minimum required
amount on goods or services and notifies the charitable
organization that the charitable organization may resume
solicitation.
* * *
Section 13. Limitation on activities of charitable
organizations; disclosure requirements.
(a) Solicitation limitation.--
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(1) A charitable organization may only solicit
contributions for the charitable purpose expressed in
solicitation for contributions or the registration statement
of the charitable organization and may only apply
contributions in a manner substantially consistent with that
purpose.
(2) A charitable organization that fails to expend the
minimum required amount, as provided in section 5(e)(2), on
goods or services shall immediately cease all solicitation
and notify the department within 15 days.
* * *
Section 2. Section 15(a) of the act is amended by adding
paragraphs to read:
Section 15. Prohibited acts.
(a) General rule.--Regardless of a person's intent or the
lack of injury, the following acts and practices are prohibited
in the planning, conduct or execution of any solicitation or
charitable sales promotion:
* * *
(14) Failing to expend the minimum required amount, as
provided in section 5(e)(2), on goods or services.
(15) Failing to immediately cease all solicitation if
the charitable organization does not expend the minimum
required amount, as provided in section 5(e)(2), on goods or
services.
(16) Failing to notify the department within 15 days
that the charitable organization is no longer expending the
minimum required amount, as provided in section 5(e)(2), on
goods or services.
* * *
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Section 3. This act shall take effect in 60 days.
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