See other bills
under the
same topic
PRINTER'S NO. 68
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
90
Session of
2017
INTRODUCED BY GREENLEAF, EICHELBERGER, MENSCH AND RAFFERTY,
JANUARY 13, 2017
REFERRED TO STATE GOVERNMENT, JANUARY 13, 2017
AN ACT
Amending Title 10 (Charities) of the Pennsylvania Consolidated
Statutes, consolidating the Solicitation of Funds for
Charitable Purposes Act and the Institutions of Purely Public
Charity Act; and making related repeals.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 10 of the Pennsylvania Consolidated
Statutes is amended by adding parts to read:
PART I
PRELIMINARY PROVISIONS
Chapter
1. General Provisions
CHAPTER 1
GENERAL PROVISIONS
Sec.
101. Short title of title.
§ 101. Short title of title.
This title shall be known and may be cited as the Charities
Code.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
PART II
GAMES
(R eserved )
PART III
OPERATION
Chapter
11. General Provisions (Reserved)
13. Solicitation of Funds for Charitable Purposes
CHAPTER 11
GENERAL PROVISIONS
(R eserved )
CHAPTER 13
SOLICITATION OF FUNDS FOR CHARITABLE PURPOSES
Sec.
1301. Scope of chapter.
1302. Legislative intent.
1303. Definitions.
1304. Powers and duties of secretary.
1305. Registration of charitable organizations; financial
reports; fees; failure to file.
1306. Exemptions from registration.
1307. Short form registration.
1308. Registration of professional fundraising counsel and
contracts.
1309. Registration of professional solicitors and contracts.
1310. Contracts voidable by charitable organizations.
1311. Information filed to become public records.
1312. Records to be kept by charitable organizations,
professional fundraising counsels and professional
solicitors.
20170SB0090PN0068 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1313. Limitation on activities of charitable organizations and
disclosure requirements.
1314. Reciprocal agreements.
1315. Prohibited acts.
1316. Investigation.
1317. Administrative enforcement and penalties.
1318. Criminal penalties.
1319. Civil penalties.
1320. Additional regulations by counties, municipalities or
consolidated government.
1321. Charitable organizations deemed fiduciary.
1322. Prior registration unaffected.
1323. Regulations.
§ 1301. Scope of chapter.
This chapter relates to solicitation of funds for charitable
purposes.
§ 1302. Legislative intent.
It is the intention of the General Assembly that this chapter
shall not merely require proper registration of charitable
organizations, professional fundraisers and professional
solicitors, but shall protect the citizens of this Commonwealth
by requiring full public disclosure of the identity of persons
who solicit contributions from the public, the purposes for
which the contributions are solicited and the manner in which
they are actually used, by promoting consumer education about
charitable concerns, by providing civil and criminal penalties
for deception and dishonest statements and conduct in the
solicitation and reporting of contributions for or in the name
of charitable purposes and by publicizing matters relating to
fraud, deception and misrepresentation perpetrated in the name
20170SB0090PN0068 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
of charity. This chapter shall not be construed to be exclusive
in its purview, and its application shall not operate as a bar
or otherwise prevent the contemporaneous or subsequent
application of other relevant acts.
§ 1303. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Administrative costs." Management and general costs of a
charitable organization, not identifiable with a single program
or fundraising activity, but indispensable to the conduct of the
programs and activities and to an organization's existence,
including expenses for the overall direction of the
organization, business management, general recordkeeping,
budgeting, financial reporting and related activities, salaries,
rent, supplies, equipment and general overhead expenses.
"Affiliate." A chapter, branch, auxiliary or other
subordinate unit of any charitable organization, however
designated, whose policies, fundraising activities and
expenditures are supervised or controlled by the parent
organization.
"Bureau." The Bureau of Charitable Organizations of the
Department of State.
"Charitable organization." A person granted tax exempt
status under section 501(c)(3) of the Internal Revenue Code of
1986 or a person who is or holds himself out to be established
for a charitable purpose or a person who in a manner employs a
charitable appeal as the basis of any solicitation or an appeal
which has a tendency to suggest that there is a charitable
purpose to any solicitation. An affiliate of a charitable
20170SB0090PN0068 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
organization which has its principal place of business outside
this Commonwealth shall be a charitable organization for the
purposes of this chapter. The term shall not be deemed to
include:
(1) A bona fide duly constituted organization of law
enforcement personnel, firefighters or other persons who
protect the public safety whose stated purpose in the
solicitation does not include a benefit to a person outside
the actual active membership of the organization.
(2) Any bona fide duly constituted religious
institutions and separate groups or corporations which form
an integral part of religious institutions, provided that:
(i) Religious institutions, groups or corporations
are tax exempt under the Internal Revenue Code of 1986.
(ii) No part of the institution, group or
corporation's net income inures to the direct benefit of
an individual.
(iii) The institution, group or corporation's
conduct is primarily supported by government grants or
contracts, funds solicited from their own memberships,
congregations or previous donors and fees charged for
services rendered.
"Charitable promotion." An advertising or sales campaign,
event or performance, conducted, produced, promoted,
underwritten, arranged or sponsored by a commercial coventurer ,
which represents that the purchase or use of goods or services
or attendance at events or performances offered or sponsored by
the commercial coventurer will benefit, in whole or in part, a
charitable organization or purpose.
"Charitable purpose." A benevolent, educational,
20170SB0090PN0068 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
philanthropic, humane, scientific, patriotic, social welfare or
advocacy, public health, environmental conservation, civic or
other eleemosynary objective, including an objective of a bona
fide duly constituted organization of law enforcement personnel,
firefighters or other persons who protect the public safety if a
stated purpose of the solicitation includes a benefit to a
person outside the actual active membership of the organization.
"Commercial coventurer." A person who for profit is
regularly and primarily engaged in trade or commerce other than
in connection with the raising of funds or any other thing of
value when offered at the usual retail price comparable to
similar goods or services in the market for a charitable
organization and who advertises that the purchase or use of
goods, services, entertainment or any other thing of value will
benefit a charitable organization.
"Contribution." The promise, grant or pledge of money,
credit, property, financial assistance or other thing of any
kind or value, excluding volunteer services, in response to a
solicitation, including the payment or promise to pay in
consideration of a performance, event or sale of a good or
service. Payment by members of an organization for membership
fees, dues, fines or assessments or for services rendered to
individual members, if the fees, dues, fines or assessments
confer a bona fide right, privilege, professional standing,
honor or other direct benefit, shall not be deemed
contributions, provided that membership is not conferred solely
as consideration for making a contribution in response to a
solicitation. Government grants or contracts shall not be deemed
a contribution.
"Department." The Department of State of the Commonwealth.
20170SB0090PN0068 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
"Federated fundraising organization." A federation of
independent charitable organizations which have voluntarily
joined together, including, but not limited to, a united way or
community chest, for purposes of raising and distributing money
for and among themselves and where membership does not confer
upon the federation operating authority and control of the
individual agencies.
"Firefighter." A person who is or represents or holds itself
out to represent, aid, train or otherwise benefit a paid or
volunteer firefighter, active or retired, or the firefighter's
family.
"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 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.
"Internal Revenue Code of 1986." The Internal Revenue Code
of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.).
"Law enforcement personnel." A person who is or represents
or holds itself out to represent, aid, train or otherwise
benefit a police officer, sheriff or deputy sheriff, constable
or deputy constable, county detective, fire police or other
person who is empowered to make arrests, serve warrants, issue
summons or otherwise enforce the laws of this Commonwealth to
20170SB0090PN0068 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
include retired law enforcement personnel and the families of
law enforcement personnel.
"Net proceeds." The total proceeds received from the
solicitation of contributions reduced by the direct cost of
merchandise or other goods sold or fundraising events of any
kind.
"Owner." A person who has a direct or indirect interest in a
professional fundraising counsel or professional solicitor.
"Parent organization." That part of a charitable
organization which coordinates, supervises or exercises control
of policy, fundraising and expenditure, or assists or receives
funds from or advises one or more affiliates.
"Person." An individual, organization, corporation,
association, partnership, trust, foundation or any other entity
however styled.
"Professional fundraising counsel." A person who is retained
by a charitable organization for a fixed fee or rate under a
written agreement to plan, manage, advise, consult or prepare
material for or with respect to the solicitation in this
Commonwealth of contributions for a charitable organization, but
who does not solicit contributions or employ, procure or engage
a compensated person to solicit contributions and who does not
have custody or control of contributions. A bona fide salaried
officer or regular, nontemporary employee of a charitable
organization shall not be deemed to be a professional
fundraising counsel, provided that the individual is not
employed or engaged as professional fundraising counsel or as a
professional solicitor by another person.
"Professional solicitor." Any person who is retained for
financial or other consideration by a charitable organization to
20170SB0090PN0068 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
solicit in this Commonwealth contributions for charitable
purposes directly or in the form of payment for goods, services
or admission to fundraising events, whether the solicitation is
performed personally or through 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
the person, or a person who plans, conducts, manages, carries
on, advises, consults, whether directly or indirectly, in
connection with the solicitation of 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
chapter. A person who is otherwise a professional fundraising
counsel shall be deemed a professional solicitor if 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.
"Secretary." The Secretary of State of the Commonwealth.
"Solicitation." A direct or indirect request for a
contribution on the representation that the contribution will be
used in whole or in part for a charitable purpose, including,
but not limited to, any of the following:
(1) An oral request that is made in person, by
telephone, radio or television or other advertising or
communication media.
20170SB0090PN0068 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(2) A 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 other media.
(3) A sale of, offer or attempt to sell an
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) An 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.
§ 1304. Powers and duties of secretary.
The secretary shall have the following powers and duties to:
(1) Provide for and regulate the registration of
charitable organizations, professional fundraising counselors
and professional solicitors.
(2) Decide matters relating to the issuance, renewal,
suspension or revocation of registrations.
(3) Promulgate, adopt and enforce the rules and
regulations necessary to carry out this chapter.
(4) Promulgate regulations altering fees and fines
established in this chapter sufficient to meet expenditures
of the bureau.
(5) Take appropriate action to initiate civil or
criminal proceedings necessary to enforce this chapter, in
accordance with the act of October 15, 1980 (P.L.950,
No.164) , known as the Commonwealth Attorneys Act.
20170SB0090PN0068 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(6) Conduct hearings and make adjudications.
(7) Keep a record showing the names and addresses of all
registered charitable organizations, professional fundraising
counsels and professional solicitors.
(8) Submit annually, on or before September 30, to the
Governor, the State Government Committee of the Senate and
the State Government Committee of the House of
Representatives, as well as to interested parties, a report
on the number of registered charities, the number of
charities ordered to cease and desist solicitation, the
number of charities contracting with professional solicitors
and the compensation of professional solicitors for each
solicitation campaign in relation to the funds raised and
administrative costs.
(9) Delegate to a division director of the office the
powers and duties under this chapter as the secretary may
deem appropriate.
(10) Exercise other authority accorded to the secretary
by this chapter.
§ 1305. Registration of charitable organizations; financial
reports; fees; failure to file.
(a) Registration and approval required.--A charitable
organization, unless exempted from registration requirements
under section 1306 (relating to exemptions from registration),
shall file a registration statement with the department. This
statement must be refiled annually within 135 days after the
close of its fiscal year in which the charitable organization
was engaged in solicitation activities. The department shall
review the statement under subsection (r). No charitable
organization shall solicit contributions or have contributions
20170SB0090PN0068 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
solicited on its behalf before approval of its registration
statement by the department.
(b) Filing of statement.--It shall be the duty of the
president, chairperson or principal officer of each charitable
organization to file the registration statement, financial
report and fee required under this section. The registration
statement shall be made by two authorized officers subject to 18
Pa.C.S. § 4904 (relating to unsworn falsification to
authorities), including the chief fiscal officer of the
organization, and shall contain the following information:
(1) The name of the organization and any other name or
names under which it intends to solicit contributions.
(2) The principal address and telephone number of the
organization and the addresses and telephone numbers of
offices in this Commonwealth. If the organization does not
maintain an office, the name and address of the individual
having custody of its financial records.
(3) The names and addresses of any affiliates which
share in the contributions or other revenue raised in this
Commonwealth.
(4) The names and addresses of the officers, directors
and trustees and the principal salaried executive staff
officers.
(5) A copy of the financial report required under
subsection (e).
(6) A copy of any determination of the organization's
tax-exempt status under the Internal Revenue Code of 1986
and, for organizations granted tax-exempt status under
section 501(c)(3) of the Internal Revenue Code of 1986, a
copy of the last filed Internal Revenue Service Form 990 and
20170SB0090PN0068 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Schedule A for every charitable organization and parent
organization.
(7) The date when the organization's fiscal year begins.
(8) Whether:
(i) The organization is authorized by any other
governmental authority to solicit contributions.
(ii) The organization or any of its present
officers, directors, executive personnel or trustees are
or have ever been enjoined in any jurisdiction from
soliciting contributions or have been found to have
engaged in unlawful practices in the solicitation of
contributions or administration of charitable assets.
(iii) The organization's registration or license has
been denied, suspended or revoked by any governmental
agency, together with the reasons for the denial,
suspension or revocation.
(iv) The organization has voluntarily entered into
an assurance of voluntary discontinuance or agreement
similar to that set forth in section 1319(b) (relating to
civil penalties), together with a copy of that agreement.
(9) A clear description of the specific programs for
which contributions will be used and a statement whether the
programs are planned or in existence.
(10) The names and addresses of professional solicitors,
professional fundraising counsels and commercial coventurers
who are acting or have agreed to act on behalf of the
organization.
(11) The names of the individuals or officers of the
organization who are in charge of any solicitation
activities, who will have final responsibility for the
20170SB0090PN0068 - 13 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
custody of the contributions and who will be responsible for
the final distribution of the contributions.
(12) Whether any of the organization's officers,
directors, trustees or employees are related by blood,
marriage or adoption to each other or to officers, agents or
employees of a professional fundraising counsel or
professional solicitor under contract to the organization or
to a supplier or vendor providing goods or services to the
organization, and the names and business and residence
addresses of any related parties. Where the number of
employees or vendors renders it impractical for the
registrant to contact them on an individual basis regarding
the existence of the relationships set forth under this
section, the registrant may file an affidavit stating which
relationships, if any, exist to the best of the affiant's
information and belief.
(13) Other information required by the regulations of
the department.
(c) Additional filings.--With the initial registration only,
each charitable organization required to be registered shall
also file with the department the following documents:
(1) A copy of the organization's charter, articles of
organization, agreement of association, instrument of trust,
constitution or other organizational instrument and bylaws.
(2) A statement setting forth where and the date when
the organization was legally established, the form of its
organization and its tax-exempt status, together with a copy
of the letter of exemption, if any, issued by the Internal
Revenue Service.
(d) Federal tax exemption determination.--Each charitable
20170SB0090PN0068 - 14 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
organization registered with the department shall file with the
department a copy of a Federal tax exemption determination
letter received after the initial registration within 30 days
after receipt, and any amendments to its organizational
instrument within 30 days after adoption.
(e) Financial report.--With each registration statement
filed under this 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 expenditures
for supplies, equipment, goods, services, programs, activities
or other expenses, a detailed list of salaries and wages paid
and expenses allowed to an 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.
(f) Audit of certain financial reports.--The financial
report of every charitable organization which receives annual
contributions of $300,000 or more shall be audited by an
independent certified public accountant or public accountant.
Every charitable organization which receives annual
contributions of at least $100,000 but less than $300,000 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 $50,000 but less
than $100,000 shall be required to have a compilation, review or
audit of their financial statements performed by an independent
20170SB0090PN0068 - 15 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
certified public accountant or public accountant. A compilation,
audit or review is optional for a charitable organization which
receives annual contributions of less than $50,000. 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, but reviews
shall be performed in accordance with the Statements on
Standards for Accounting and Review Services of the American
Institute of Certified Public Accountants.
(g) Governmental audits.--Government audits of government
grants shall be accepted and shall be included as part of the
financial statements.
(h) Other acceptable reports.--The department may accept a
copy of a current financial report previously prepared by a
charitable organization for a governmental agency in another
jurisdiction in compliance with the laws of that jurisdiction,
provided that the report filed with the other governmental
agency shall be substantially similar in content to the report
required by this section.
(i) Reports to accompany audit.--Audited and reviewed
financial statements must be accompanied by the report prepared
and signed by the independent public accountant.
(j) Optional departmental action.--The department shall have
the discretion to require that an audit or review be submitted
by a charitable organization which files a registration
statement. The department shall also have the discretion to
accept the financial statement submitted by the organization in
lieu of an audit or review where special facts and circumstances
are presented.
(k) Time extension for filings.--For good cause shown, the
20170SB0090PN0068 - 16 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
department may extend the time for the annual filing of a
registration statement or financial report for a period not to
exceed 180 days during which time the previous registration
remains in effect.
(l) Cancellation of registration.--In no event shall the
registration of a charitable organization continue in effect
after the date the organization should have filed, but failed to
file, its financial report in accordance with this section. The
organization shall not be eligible to file a new registration
statement until it shall have filed the required financial
report with the department.
(m) Reports by affiliates.--
(1) Each affiliate whose parent organization has its
principal place of business in this Commonwealth may
separately file the registration statement or financial
information required by this section, or report the required
information to its parent organization which shall then file
a combined registration statement and financial report for
its Pennsylvania affiliates. There shall be appended to each
combined report a schedule, containing information as
prescribed in the regulations of the department, reflecting
the activities of each affiliate, which shall contain a
certification, under oath, by an official of the
organization, that the information contained in the schedule
is true. The failure of a parent organization to file a
combined registration statement and financial report shall
not excuse either the parent organization or its affiliates
from complying with the requirements of this section.
(2) If an affiliate is soliciting in this Commonwealth
but its parent organization has its principal place of
20170SB0090PN0068 - 17 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
business outside this Commonwealth, both the affiliate and
the parent organization shall independently comply with the
registration requirements of this section.
(n) Federated organizations.--An independent member agency
of a federated fundraising organization shall independently
comply with the provisions of this section unless specifically
exempted or unless it receives allocations solely from the
federated fundraising organization and does not independently
solicit contributions. Donor choice programs are deemed to be
independent solicitations.
(o) Retention of records.--Each charitable organization
required to register shall maintain records, books and reports
for at least three years after the end of the period of
registration to which they relate, which shall be available for
inspection upon demand by the department and the Office of
Attorney General.
(p) Annual registration fees.--A charitable organization
which submits a short form registration statement under section
1307 (relating to short form registration) or receives
contributions of $25,000 or less during the immediately
preceding fiscal year shall pay an annual registration fee of
$15. A charitable organization which receives contributions in
excess of $25,000 but less than $100,000 during the immediately
preceding fiscal year shall pay an annual registration fee of
$100. A charitable organization which receives contributions in
excess of $100,000 but not exceeding $500,000 during the
immediately preceding fiscal year shall pay an annual
registration fee of $150. A charitable organization which
receives contributions in excess of $500,000 during the
immediately preceding fiscal year shall pay an annual
20170SB0090PN0068 - 18 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
registration fee of $250. A parent organization filing on behalf
of one or more affiliates and a federated fundraising
organization filing on behalf of its member agencies shall pay a
single annual registration fee for itself and other affiliates
or member agencies included in the registration statement.
(q) Late filing fees.--In addition to the registration fee,
an organization failing to file a registration application by
the due date shall pay an additional fee of $25 for each month
or part of the month after the date on which the registration
statement and financial report were due to be filed or after the
period of extension granted for the filing.
(r) Department review.--The department shall examine each
registration statement and supporting documents filed by a
charitable organization and shall determine whether the
registration requirements are satisfied. If the department
determines that the registration requirements are not satisfied,
the department must notify the charitable organization within 10
working days of its receipt of the registration statement.
Otherwise, the registration statement is deemed to be approved.
Within seven days after receipt of a notification that the
registration requirements are not satisfied, the charitable
organization may request a hearing. The hearing must be held
within seven days of receipt of the request, and a determination
must be rendered within three working days of the hearing.
(s) Administration of charitable contributions.--A
charitable organization shall maintain and administer the
contributions raised on its behalf through an account in the
name of the charitable organization and under its sole control.
(t) Updating information.--A material change in information
filed with the department under this section shall be reported
20170SB0090PN0068 - 19 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
in writing by the registrant to the department not more than 30
days after the change occurs.
§ 1306. Exemptions from registration.
(a) General rule.--The following charitable organizations
shall be exempt from the registration requirements of this
chapter:
(1) Educational institutions, the curricula of which, in
whole or in part, are registered with or approved by the
Department of Education, either directly or by acceptance of
accreditation by an accrediting body recognized by the
Department of Education, and any auxiliary associations,
foundations and support groups which are directly responsible
to educational institutions.
(2) Hospitals which are subject to regulation by the
Department of Health or the Department of Human Services and
the hospital foundation, if any, which is an integral part of
the hospitals.
(3) A local post, camp, chapter or similarly designated
element or a county unit of the elements of:
(i) any veterans' organization chartered under
Federal law and any service foundation recognized in the
bylaws of the organization;
(ii) a bona fide organization of volunteer firemen;
(iii) a bona fide ambulance association;
(iv) a bona fide rescue squad association; or
(v) a bona fide auxiliary or affiliate of any
organization or association under subparagraph (i), (ii),
(iii) or (iv);
provided that all fundraising activities are carried on by
volunteers, members or an auxiliary or affiliate of the
20170SB0090PN0068 - 20 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
organization or association and that they receive no
compensation directly or indirectly for the fundraising
activities.
(4) Public nonprofit library organizations which receive
financial aid from State and municipal governments and file
an annual fiscal report with the State Library System.
(5) Senior citizen centers and nursing homes which are
nonprofit and charitable and which have been granted tax-
exempt status under the Internal Revenue Code of 1986,
provided that all fundraising activities are carried on by
volunteers, members or officers of the senior citizen center
and that those volunteers, members or officers receive no
compensation, directly or indirectly, for the fundraising
activities.
(6) Bona fide parent-teacher associations or parent-
teacher organizations as recognized in a notarized letter
from the school district in which they are located.
(7) Any corporation established by an act of the
Congress of the United States that is required by Federal law
to submit annual reports of its activities to Congress
containing itemized accounts of all receipts and expenditures
after being fully audited by the Department of Defense.
(8) Any charitable organization which receives
contributions of $25,000 or less annually, provided that the
organization does not compensate any person who conducts
solicitations. Charitable organizations which receive more
than $25,000 in contributions shall file the appropriate
registration statement within 30 days after the contributions
are received.
(b) Effect of exemption.--Exemption from the registration
20170SB0090PN0068 - 21 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
requirements of this chapter shall in no way limit the
applicability of other provisions of this part to a charitable
organization or any professional solicitor or professional
fundraising counsel acting on its behalf, except that written
notice under sections 1309(k) (relating to registration of
professional solicitors and contracts) and 1313(c) (relating to
limitation on activities of charitable organizations and
disclosure requirements) shall not apply.
§ 1307. Short form registration.
(a) Organizations required to file.--The following
charitable organizations shall be required to file short form
annual registration statements with the department in lieu of
the registration statement required by section 1305 (relating to
registration of charitable organizations; financial reports;
fees; failure to file):
(1) Persons or charitable organizations accepting
contributions for the relief of any individual specified by
name at the time of acceptance or solicitation when all of
the contributions collected without any deductions whatsoever
are turned over to the named beneficiary for the
beneficiary's use, provided that all contributions collected
shall be held in trust and shall be subject to the provisions
of 20 Pa.C.S. Ch. 77 (relating to trusts). The secretary, the
Attorney General, any contributor or any person who provides
any goods or services for which funds are expressly or
implicitly solicited shall have the right to petition the
court of common pleas of the county in which the trust is
located for an accounting of all contributions. For purposes
of this paragraph, the trust shall be deemed to be located in
the county where the principal place of business of the
20170SB0090PN0068 - 22 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
charitable organization is located. If a charitable
organization has its principal place of business outside this
Commonwealth, all of the following shall apply:
(i) If an affiliate is soliciting contributions
within this Commonwealth, the trust shall be deemed to be
located in the county where the principal place of
business of the affiliate is located.
(ii) If a person is soliciting contributions within
this Commonwealth, the trust shall be deemed to be
located in the county where the principal place of
business or the residence of the person is located.
(iii) If there is no place of business or residence
within this Commonwealth, the trust shall be deemed to be
located in the County of Dauphin.
(2) Organizations which only solicit within the
membership of the organization by the members of the
organization provided that the term "membership" shall not
include those persons who are granted a membership solely
upon making a contribution as the result of solicitation. For
the purpose of this paragraph, "member" means a person having
membership in a nonprofit corporation, or other organization,
in accordance with the provisions of its articles of
incorporation, bylaws or other instruments creating its form
and organization and having bona fide rights and privileges
in the organization such as the right to vote, to elect
officers and directors or to hold office or position as
ordinarily conferred on members of the organizations.
(3) Charitable organizations whose fundraising
activities are carried out by volunteers, members, officers
or permanent employees and which do not receive contributions
20170SB0090PN0068 - 23 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
in excess of $25,000 during a fiscal year, if no part of
their assets or income inures to the benefit of or is paid to
any officer or member, professional fundraising counsel,
professional solicitor or commercial coventurer. Charitable
organizations which do not intend to solicit and receive in
excess of $25,000 but do receive contributions in excess of
that amount shall file the financial report required in
section 1305 within 30 days after contributions are received
in excess of that amount.
(4) Organizations described in section 1306(a)(3)
(relating to exemptions from registration) which do not
receive contributions in excess of $100,000 during a fiscal
year if no part of their assets or income inures to the
benefit of or is paid to a professional solicitor.
(b) Contents of statement.--The short form annual
registration statements required to be filed under this section
shall include any information required by the regulations of the
department.
(c) Financial report.--Charitable organizations which file a
short form registration statement need not file the financial
report required under section 1305.
(d) Updating of information.--Any material change in any
information filed with the department under this section shall
be reported in writing by the registrant to the department not
more than 30 days after the change occurs.
§ 1308. Registration of professional fundraising counsel and
contracts.
(a) Registration and approval required.--No person shall act
as a professional fundraising counsel before obtaining
department approval of a registration statement under subsection
20170SB0090PN0068 - 24 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(c) or after the expiration, suspension or revocation of
registration. A registration application shall be signed and
made by the principal officer of the professional fundraising
counsel subject to 18 Pa.C.S. § 4904 (relating to unsworn
falsification to authorities) and shall contain all of the
following information:
(1) The address of the principal place of business of
the applicant and any addresses within this Commonwealth, if
the principal place of business is located outside this
Commonwealth.
(2) The form of the applicant's business.
(3) The names and residence addresses of all principals
of the applicant, including all officers, directors and
owners.
(4) Whether any of the owners, directors, officers or
employees of the applicant are related by blood, marriage or
adoption to any other directors, officers, owners or
employees of the applicant, any officer, director, trustee or
employee of any charitable organization under contract to the
applicant or any supplier or vendor providing goods or
services to any charitable organization under contract to the
applicant.
(5) The name of any person who is in charge of any
solicitation activity.
(6) Any other information required by the regulations of
the department.
(b) Registration fee.--The application for registration
shall be accompanied by a fee of $250. A professional
fundraising counsel which is a partnership or corporation may
register for and pay a single fee on behalf of all of its
20170SB0090PN0068 - 25 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
partners, members, officers, directors, agents and employees.
Each registration shall be valid for one year and may be renewed
for additional one-year periods upon application to the
department and payment of the registration fee.
(c) Department review of registration statement.--The
department shall examine each registration statement and
supporting document filed by a professional fundraising counsel
and shall determine whether the registration requirements are
satisfied. If the department determines that the registration
requirements are not satisfied, the department must notify the
professional fundraising counsel within 10 working days of the
receipt of its registration statement, otherwise the
registration statement is deemed to be approved. Within seven
days after receipt of a notification that the registration
requirements are not satisfied, the professional fundraising
counsel may request a hearing. The hearing must be held within
seven days of receipt of the request, and a determination must
be rendered within three working days of the hearing.
(d) Written contract.--There shall be a written contract
between a charitable organization and a professional fundraising
counsel which shall be filed by the professional fundraising
counsel with the department at least 10 working days prior to
the performance by the professional fundraising counsel of any
service. No solicitation or services pursuant to the contract
shall begin before the department has approved the contract
under subsection (e). The contract must be signed by two
authorized officials of the charitable organization, one of whom
must be a member of the organization's governing body, and the
authorized contracting officer for the professional fundraising
counsel. The contract shall contain all of the following
20170SB0090PN0068 - 26 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
provisions:
(1) The legal name and address of the charitable
organization as registered with the department unless that
charitable organization is exempt from registration.
(2) A statement of the charitable purpose for which the
solicitation campaign is being conducted.
(3) A statement of the respective obligations of the
professional fundraising counsel and the charitable
organization.
(4) A clear statement of the fees which will be paid to
the professional fundraising counsel.
(5) The effective and termination dates of the contract.
If the contract does not have a set termination date the
contract shall contain a clause allowing either party a
reasonable period to terminate the contract or notify the
other party if either party chooses not to renew. The
contract shall also contain the date services will commence
with respect to solicitation in this Commonwealth of
contributions for a charitable organization.
(6) A statement that the professional fundraising
counsel will not at any time have custody or control of
contributions.
(7) A statement that the charitable organization
exercises control and approval over the content and volume of
any solicitation.
(8) Any other information required by the regulations of
the department.
(e) Department review of contract.--The department shall
examine each contract filed by a professional fundraising
counsel and shall determine whether the contract contains the
20170SB0090PN0068 - 27 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
required information. If the department determines that the
requirements are not satisfied, the department must notify the
professional fundraising counsel within 10 working days of its
receipt of the contract. Otherwise, the contract is deemed to be
approved. Within seven days after receipt of a notification that
the requirements are not satisfied, the professional fundraising
counsel may request a hearing. The hearing must be held within
seven days of receipt of the request and a determination must be
rendered within three working days of the hearing.
§ 1309. Registration of professional solicitors and contracts.
(a) Registration and approval required.--No person shall act
as a professional solicitor before obtaining department approval
of a registration statement under subsection (d) or after the
expiration, suspension or revocation of registration. A
registration application shall be signed and made by the
principal officer of the professional solicitor subject to 18
Pa.C.S. § 4904 (relating to unsworn falsification to
authorities) and shall contain all of the following information:
(1) The address of the principal place of business of
the applicant and any addresses within this Commonwealth, if
the principal place of business is located outside this
Commonwealth.
(2) The form of the applicant's business.
(3) The names and residence addresses of all principals
of the applicant, including all officers, directors and
owners.
(4) Whether any of the owners, directors, officers or
employees of the applicant are related by blood, marriage or
adoption to any other directors, officers, owners or
employees of the applicant, any officer, director, trustee or
20170SB0090PN0068 - 28 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
employee of any charitable organization under contract to the
applicant or any supplier or vendor providing goods or
services to any charitable organization under contract to the
applicant.
(5) The name of all persons in charge of any
solicitation activity.
(6) Any other information required by the regulations of
the department.
(b) Registration fee.--The application for registration
shall be accompanied by a fee of $250. A professional solicitor
which is a partnership or corporation may register for and pay a
single fee on behalf of all of its partners, members, officers,
directors, agents and employees. Each registration shall be
valid for one year and may be renewed for additional one-year
periods upon application to the department and payment of the
registration fee.
(c) Bond.--A professional solicitor shall, at the time of
making application for registration or renewal of registration,
file with and have approved by the department a bond, in which
it shall be the principal obligor, in the sum of $25,000, or a
greater amount as prescribed by the regulations of the
department, and which shall have one or more sureties
satisfactory to the department whose liability in the aggregate
as sureties will at least equal that sum and maintain the bond
in effect as long as the registration is in effect. The bond
shall run to the Commonwealth for use of the secretary, Attorney
General and any person who may have a cause of action against
the obligor for any losses resulting from malfeasance,
nonfeasance or misfeasance in the conduct of solicitation
activities. A professional solicitor which is a partnership or
20170SB0090PN0068 - 29 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
corporation may file one $25,000 bond or an amount specified by
regulation of the department on behalf of all of its partners,
members, officers, directors, agents and employees.
(d) Department review of registration statement.--The
department shall examine each registration statement and
supporting documents filed by a professional solicitor and shall
determine whether the registration requirements are satisfied.
If the department determines that the registration requirements
are not satisfied, the department must notify the professional
solicitor within 10 working days of its receipt of the
registration statement. Otherwise, the registration statement is
deemed to be approved. Within seven days after receipt of a
notification that the regulation requirements are not satisfied,
the professional solicitor may request a hearing. The hearing
must be held within seven days of receipt of the request and a
determination must be rendered within three working days of the
hearing.
(e) Contract filing.--No less than 10 working days prior to
the commencement of each solicitation campaign, event or
services, a professional solicitor shall file with the
department a copy of the contract described in subsection (f)
and a written solicitation notice. No solicitation or services
pursuant to the contract shall begin before the department has
approved the contract under subsection (g). The solicitation
notice shall be accompanied by a fee of $25 and shall be signed
and sworn to by the authorized contracting officer for the
professional solicitor. If more than one event or campaign is
conducted under a contract, then a solicitation notice addendum
must be filed no less than 10 working days prior to the
commencement of each additional event or campaign. No additional
20170SB0090PN0068 - 30 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
fee is required to file the addendum. The solicitation notice
and addendum shall contain all of the following information:
(1) A description of the solicitation event or campaign.
(2) Each location and telephone number from which the
solicitation is to be conducted.
(3) The legal name and resident address of each person
responsible for directing and supervising the conduct of the
campaign and each person who is to solicit during the
campaign.
(4) A statement as to whether the professional solicitor
will at any time have custody or control of contributions.
(5) The account number and location of each bank account
where receipts from the campaign are to be deposited.
(6) A full and fair description of the charitable
program for which the solicitation campaign is being carried
out.
(7) The date the solicitation campaign or event will
begin or be held within this Commonwealth and the termination
date for each campaign or event.
(8) Any other information required by the regulations of
the department.
(f) Written contract.--There shall be a written contract
between a professional solicitor and a charitable organization
for each solicitation campaign which shall be signed by two
authorized officials of the charitable organization, one of whom
must be a member of the organization's governing body, and the
authorized contracting officer for the professional solicitor.
The contract shall contain all of the following provisions:
(1) The legal name and address of the charitable
organization as registered with the department, unless that
20170SB0090PN0068 - 31 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
charitable organization is exempt from registration.
(2) A statement of the charitable purpose for which the
solicitation campaign is being conducted.
(3) A statement of the respective obligations of the
professional solicitor and the charitable organization.
(4) A statement of the guaranteed minimum percentage of
the gross receipts from contributions which will be remitted
to or retained by the charitable organization, if any, or, if
the solicitation involves the sale of goods, services or
tickets to a fundraising event, the percentage of the
purchase price which will be remitted to the charitable
organization, if any. Any stated percentage shall exclude any
amount which the charitable organization is to pay as
fundraising costs.
(5) A statement of the percentage of the gross revenue
which the professional solicitor will be compensated. The
stated percentage shall include any amount which the
professional solicitor is to be reimbursed as payment for
fundraising costs. If the compensation of the professional
solicitor is not contingent upon the number of contributions
or the amount of revenue received, the compensation shall be
expressed as a reasonable estimate of the percentage of the
gross revenue, and the contract shall clearly disclose the
assumptions upon which the estimate is based. The stated
assumptions shall be based upon all of the relevant facts
known to the professional solicitor regarding the
solicitation to be conducted by the professional solicitor.
(6) The effective and termination dates of the contract.
If the contract does not have a set termination date, the
contract shall contain a clause allowing either party a
20170SB0090PN0068 - 32 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
reasonable period to terminate the contract or notify the
other party if either party chooses not to renew. The
contract shall also contain the date solicitation activity is
to commence within this Commonwealth.
(7) Any other information required by the regulations of
the department.
(g) Department review of contract.--The department shall
examine each contract and solicitation notice filed by a
professional solicitor and shall determine whether the contract
and notice contain the required information. If the department
determines that the requirements are not satisfied, the
department must notify the professional solicitor within 10
working days of its receipt of the contract and notice.
Otherwise, the contract and notice are deemed to be approved.
Within seven days after receipt of a notification that the
requirements are not satisfied, the professional solicitor may
request a hearing. The hearing must be held within seven days of
receipt of the request, and a determination must be rendered
within three working days of the hearing.
(h) Required disclosures.--Prior to orally requesting a
contribution or contemporaneously with a written request for a
contribution, a professional solicitor shall be responsible for
clearly and conspicuously disclosing:
(1) The name of the professional solicitor as on file
with the department and that the solicitation is being
conducted by a professional solicitor who is being paid for
the solicitor's services.
(2) If the individual acting on behalf of the
professional solicitor is identified by name, the
individual's legal name.
20170SB0090PN0068 - 33 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30