PRINTER'S NO. 1236
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
879
Session of
2019
INTRODUCED BY MASTRIANO, MARTIN, PHILLIPS-HILL, PITTMAN, J. WARD
AND K. WARD, OCTOBER 7, 2019
REFERRED TO STATE GOVERNMENT, OCTOBER 7, 2019
AN ACT
Amending the act of December 19, 1990 (P.L.1200, No.202),
entitled "An act providing for the registration and
regulation of solicitations by charitable organizations,
professional fundraisers and other solicitors; imposing
additional powers on the Department of State and the Office
of Attorney General; prescribing civil and criminal
penalties; and making a repeal," further providing for
definitions, for registration of charitable organizations,
financial reports, fees and failure to file, for registration
of professional solicitors, contract and disclosure
requirements, bonds, records and books and for administrative
enforcement and penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "fundraising costs" in section
3 of the act of December 19, 1990 (P.L.1200, No.202), known as
the Solicitation of Funds for Charitable Purposes Act, is
amended to read:
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
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"Fundraising costs." Those costs incurred in inducing others
to make contributions to a charitable organization for which the
contributors will receive no direct economic benefit.
Fundraising costs normally include, but are not limited to,
salaries, rent, acquiring and maintaining mailing lists,
printing, mailing and all direct and indirect costs of
soliciting, as well as the cost of unsolicited merchandise sent
to encourage contributions. Fundraising costs do not include the
direct cost of merchandise or goods sold or the direct cost of
fundraising dinners, bazaars, shows, circuses, banquets,
dinners, theater parties or any other form of benefit
performances. This term may not include any costs or fundraising
activities associated with the use of a professional fundraising
counsel by a charitable organization.
* * *
Section 2. Sections 5(f), 9(l) and 17(b)(3) of the act are
amended to read:
Section 5. Registration of charitable organizations; financial
reports; fees; failure to file.
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(f) Audit of certain financial reports.--[The] Except as
provided under section 9(l), the financial report of every
charitable organization which receives annual contributions of
$750,000 or more shall be audited by an independent certified
public accountant or public accountant. Every charitable
organization which receives annual contributions of at least
$250,000, but less than $750,000, shall be required to have a
review or audit of their financial statements performed by an
independent certified public accountant or public accountant.
Every charitable organization which receives annual
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contributions of at least $100,000, but less than $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 any charitable organization which
receives annual contributions of less than $100,000. Audits
shall be performed in accordance with generally accepted
auditing standards, including the Statements on Auditing
Standards of the American Institute of Certified Public
Accountants, whereas reviews shall be performed in accordance
with the Statements on Standards for Accounting and Review
Services of the American Institute of Certified Public
Accountants.
* * *
Section 9. Registration of professional solicitors; contract
and disclosure requirements; bonds; records;
books.
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(l) Financial reports.--Within 90 days after a solicitation
campaign or event has been completed and on the anniversary of
the commencement of a solicitation campaign lasting more than
one year, a professional solicitor shall file with the
department a financial report for the campaign, including gross
revenue and an itemization of all expenses incurred. This report
shall be signed and sworn to by the authorized contracting agent
for the professional solicitor and two authorized officials of
the charitable organization. The filing of a financial report
under this subsection by a professional solicitor having a
contract with a charitable organization shall be accepted by the
department and the reports shall relieve a charitable
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organization from the requirements under section 5(f).
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Section 17. Administrative enforcement and penalties.
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(b) Additional actions.--When the secretary finds that the
registration of any person may be refused, suspended or revoked
under the terms of subsection (a), the secretary may:
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(3) Impose an administrative fine not to exceed [$1,000]
$100 for each act or omission which constitutes a violation
of this act and an additional penalty, not to exceed [$100]
$50 for each day during which such violation continues.
Registration will be automatically suspended upon final
affirmation of an administrative fine until the fine is paid
or until the normal expiration date of the registration. No
registration shall be renewed until the fine is paid.
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Section 3. This act shall take effect in 60 days.
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