SENATE AMENDED
PRIOR PRINTER'S NO. 1570
PRINTER'S NO. 2575
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1222
Session of
2019
INTRODUCED BY LEWIS, MILLARD, BERNSTINE, MOUL AND CIRESI,
APRIL 26, 2019
SENATOR PHILLIPS-HILL, STATE GOVERNMENT, IN SENATE, AS AMENDED,
SEPTEMBER 24, 2019
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. Scope of title.
§ 101. Scope of title.
This title relates to charities.
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PART II
GAMES
(Reserved)
PART III
OPERATION
Chapter
11. General Provisions (Reserved)
13. Solicitation of Funds for Charitable Purposes
CHAPTER 11
GENERAL PROVISIONS
(Reserved)
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.
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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 only 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
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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, notwithstanding
its designation, whose policies, fundraising activities and
expenditures are supervised or controlled by the parent
organization.
"Bureau." The Bureau of Corporations and 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 or herself 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
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charitable 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 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) A bona fide duly constituted religious institution
and separate group or corporation which forms an integral
part of a religious institution, if all of the following
apply:
(i) The religious institution, group or corporation
is tax exempt under the Internal Revenue Code of 1986.
(ii) No part of the institution's, group's or
corporation's net income inures to the direct benefit of
an individual.
(iii) The institution's, group's 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.
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"Charitable purpose." A benevolent, educational,
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. The term shall not include the following:
(1) 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 if membership is not conferred
solely as consideration for making a contribution in response
to a solicitation.
(2) Government grants or contracts.
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"Department." The Department of State of the Commonwealth.
"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 if 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." Costs incurred in inducing others to
make contributions to a charitable organization for which the
contributors will receive no direct economic benefit, such as
salaries, rent, acquiring and maintaining mailing lists,
printing, mailing and direct and indirect costs of soliciting
and the cost of unsolicited merchandise sent to encourage
contributions. The term shall 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 enforce the laws of this Commonwealth to include
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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." The 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. The term shall not
include a bona fide salaried officer or regular, nontemporary
employee of a charitable organization if the individual is not
employed or engaged as professional fundraising counsel or as a
professional solicitor by another person.
"Professional solicitor." As follows:
(1) Any person who is retained for financial or other
consideration by a charitable organization to solicit in this
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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.
(2) The term shall include a person who is otherwise a
professional fundraising counsel if the person's compensation
is related to the amount of contributions received.
(3) The term shall not include a bona fide salaried
officer or regular, nontemporary employee of a charitable
organization if 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
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communication media.
(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 under 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,
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No.164) , known as the Commonwealth Attorneys Act.
(6) Conduct hearings and make adjudications.
(7) Keep a record showing the names and addresses of
each registered charitable organization, professional
fundraising counsel and professional solicitor.
(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, and 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. The
statement must be refiled annually within 135 days after AND
POSTMARKED BY THE FIFTEENTH DAY OF THE FIFTH MONTH FOLLOWING the
close of its fiscal year in which the charitable organization
was engaged in solicitation activities. The department shall
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review the statement under subsection (r). A charitable
organization may not solicit contributions or have contributions
solicited on the charitable organization's 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
charitable organization, and shall contain the following
information:
(1) The name of the charitable organization and any
other name or names under which it intends to solicit
contributions.
(2) The principal address and telephone number of the
charitable organization and the addresses and telephone
numbers of offices in this Commonwealth. If the charitable
organization does not maintain an office, the name and
address of the individual having custody of the charitable
organization's 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).
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(6) A copy of any determination of the charitable
organization's tax-exempt status under the Internal Revenue
Code of 1986 and, for charitable 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 Schedule A for every charitable
organization and parent organization.
(7) The date when the charitable organization's fiscal
year begins.
(8) Whether:
(i) The charitable organization is authorized by any
other governmental authority to solicit contributions.
(ii) The charitable 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 charitable 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 charitable 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
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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
charitable 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
custody of the contributions and who will be responsible for
the final distribution of the contributions.
(12) Whether any of the charitable 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
charitable organization, and the names and business and
residence addresses of 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 charitable organization's charter,
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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 charitable 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
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 charitable
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
charitable 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
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contributions of $300,000 $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 $100,000 $250,000 , but less than
$300,000 $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 $50,000 $100,000 , but less than $100,000 $250,000 ,
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 a charitable organization which receives
annual contributions of less than $50,000 $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. 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 if
the report filed with the other governmental agency shall be
substantially similar in content to the report required by this
section.
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(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:
(1) Require that an audit or review be submitted by a
charitable organization which files a registration statement.
(2) Accept the financial statement submitted by the
organization in lieu of an audit or review if special facts
and circumstances are presented.
(k) Time extension for filings.--For good cause shown, the
department may extend the time for the annual filing of a
registration statement or financial report for a period TO A
MAILING DATE not to exceed 180 days THE FIFTEENTH DAY OF THE
ELEVENTH MONTH FOLLOWING THE CLOSE OF THE FISCAL YEAR during
which time the previous registration remains in effect.
(l) Cancellation of registration.--The registration of a
charitable organization may not continue in effect after the
date the charitable organization should have filed, but failed
to file, its financial report in accordance with this section. A
charitable organization may not file a new registration
statement until the charitable organization has 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
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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
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 the charitable organizations relate, which
shall be available for inspection upon demand by the department
and Office of Attorney General.
(p) Annual registration fees.--A charitable organization
which submits a short form registration statement under section
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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
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
15 working days of its receipt of the registration statement.
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Otherwise, the registration statement is deemed to be approved.
Within seven 15 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 15 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 the charitable organization's behalf
through an account in the name of the charitable organization
and under the charitable organization's sole control.
(t) Updating information.--A material change in 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.
§ 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 that 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
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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
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
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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 that 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
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
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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
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 Dauphin County.
(2) Organizations which only solicit within the
membership of the organization by the members of the
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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
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
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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
(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
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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 that 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) 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 15 working days of
the receipt of its registration statement, otherwise the
registration statement is deemed to be approved. Within seven 15
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
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seven 15 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 charitable organization's governing
body, and the authorized contracting officer for the
professional fundraising counsel. 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
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 of time to terminate the contract or notify
the other party if either party chooses not to renew. The
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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
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
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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 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
that 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.
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(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 that is a partnership or
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 15 working days of its receipt of the
registration statement. Otherwise, the registration statement is
deemed to be approved. Within seven 15 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 15 days of receipt of the request and
a determination must be rendered within three working days of
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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
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.
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