PRINTER'S NO. 754
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
794
Session of
2023
INTRODUCED BY ECKER, GREINER, KAUFFMAN, HAMM, STAMBAUGH, CIRESI,
KEEFER, MENTZER, MOUL, ZIMMERMAN AND MARCELL, APRIL 3, 2023
REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 3, 2023
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
definitions, for registration of charitable organizations,
financial reports, fees and failure to file, for registration
of professional solicitors, contract and disclosure
requirements, bonds, records and books and for administrative
enforcement and penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "fundraising costs,"
"professional solicitor" and "solicitation" in section 3 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 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
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* * *
"Fundraising costs." Those costs incurred in inducing others
to make contributions to a charitable organization for which the
contributors will receive no direct economic benefit.
Fundraising costs normally include, but are not limited to,
salaries, rent, acquiring and maintaining mailing lists,
printing, mailing and all direct and indirect costs of
soliciting, as well as the cost of unsolicited merchandise sent
to encourage contributions. Fundraising costs do not include the
direct cost of merchandise or goods sold or the direct cost of
fundraising dinners, bazaars, shows, circuses, banquets,
dinners, theater parties or any other form of benefit
performances. This term does not include costs or fundraising
activities associated with the use of a professional fundraising
counsel by a charitable organization that is a volunteer fire
company in this Commonwealth.
* * *
"Professional solicitor." Any person who is retained for
financial or other consideration by a charitable organization to
solicit in this Commonwealth contributions for charitable
purposes directly or in the form of payment for goods, services
or admission to fundraising events, whether such solicitation is
performed personally or through [his] the person's agents,
servants or employees or through agents, servants or employees
especially employed by or for a charitable organization who are
engaged in the solicitation of contributions, the sale of goods
or services or the production of fundraising events under the
direction of such person, or a person who plans, conducts,
manages, carries on, advises, consults, whether directly or
indirectly, in connection with the solicitation of
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contributions, sale of goods or services or the production of
fundraising events for or on behalf of any charitable
organization, but does not qualify as a professional fundraising
counsel within the meaning of this act. A person who is
otherwise a professional fundraising counsel shall be deemed a
professional solicitor if [his] the person's compensation is
related to the amount of contributions received. A bona fide
salaried officer or regular, nontemporary employee of a
charitable organization shall not be deemed to be a professional
solicitor provided that the individual is not employed or
engaged as professional fundraising counsel or as a professional
solicitor by any other person. A supplier or vendor that
independently contracts with a charitable organization or does
not agree to solicit contributions for charitable purposes on
behalf of the charitable organization shall not be deemed to be
a professional solicitor.
* * *
"Solicitation." Any direct or indirect request for a
contribution on the representation that such contribution will
be used in whole or in part for a charitable purpose, including,
but not limited to, any of the following:
(1) Any oral request that is made in person, by
telephone, radio or television or other advertising or
communication media.
(2) Any written or otherwise recorded or published
request that is mailed, sent, delivered, circulated,
distributed, posted in a public place or advertised or
communicated by press, telegraph, television or any other
media.
(3) Any sale of, offer or attempt to sell any
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advertisement, advertising space, sponsorship, book, card,
chance, coupon, device, food, magazine, merchandise,
newspaper, subscription, ticket or other service or tangible
good, thing or item of value.
(4) Any announcement requesting the public to attend an
appeal, assemblage, athletic or competitive event, carnival,
circus, concert, contest, dance, entertainment, exhibition,
exposition, game, lecture, meal, party, show, social
gathering or other performance or event of any kind.
Without the request for a contribution, an appeal based upon a
charitable purpose, the use of the name of the charitable
organization or the implication that some proceeds will be
donated to the charitable organization shall not be deemed a
solicitation.
Section 2. Sections 5(f), 9(l) and 17(b)(3) of the act are
amended to read:
Section 5. Registration of charitable organizations; financial
reports; fees; failure to file.
* * *
(f) Audit of certain financial reports.--[The] Except as
provided under section 9(l), the financial report of every
charitable organization which receives annual contributions of
$750,000 or more shall be audited by an independent certified
public accountant or public accountant. Every charitable
organization which receives annual contributions of at least
$250,000, but less than $750,000, shall be required to have a
review or audit of their financial statements performed by an
independent certified public accountant or public accountant.
Every charitable organization which receives annual
contributions of at least $100,000, but less than $250,000,
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shall be required to have a compilation, review or audit of
their financial statements performed by an independent certified
public accountant or public accountant. A compilation, audit or
review is optional for any charitable organization which
receives annual contributions of less than $100,000. Audits
shall be performed in accordance with generally accepted
auditing standards, including the Statements on Auditing
Standards of the American Institute of Certified Public
Accountants, whereas reviews shall be performed in accordance
with the Statements on Standards for Accounting and Review
Services of the American Institute of Certified Public
Accountants.
* * *
Section 9. Registration of professional solicitors; contract
and disclosure requirements; bonds; records;
books.
* * *
(l) Financial reports.--
(1) Within 90 days after a solicitation campaign or
event has been completed and on the anniversary of the
commencement of a solicitation campaign lasting more than one
year, a professional solicitor shall file with the department
a financial report for the campaign, including gross revenue
and an itemization of all expenses incurred. This report
shall be signed and sworn to by the authorized contracting
agent for the professional solicitor and two authorized
officials of the charitable organization.
(2) The filing of a financial report under this
subsection by a professional solicitor having a contract with
a charitable organization that is a volunteer fire company in
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this Commonwealth shall be accepted by the department, and
the report shall relieve the charitable organization from the
requirements under section 5(f).
* * *
Section 17. Administrative enforcement and penalties.
* * *
(b) Additional actions.--When the secretary finds that the
registration of any person may be refused, suspended or revoked
under the terms of subsection (a), the secretary may:
* * *
(3) Impose an administrative fine not to exceed [$1,000]
$100 for each act or omission which constitutes a violation
of this act and an additional penalty, not to exceed [$100]
$50 for each day during which such violation continues.
Registration will be automatically suspended upon final
affirmation of an administrative fine until the fine is paid
or until the normal expiration date of the registration. No
registration shall be renewed until the fine is paid.
* * *
Section 3. This act shall take effect in 60 days.
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