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Who Must Register?
The Solicitation of Funds for Charitable Purposes Act, 10 P.S. Section 162.1 et seq., requires all organizations soliciting funds for a charitable purpose to register with the Department of State's Bureau of Charitable Organizations before they solicit contributions in Pennsylvania -- unless they are specifically excluded or exempt from the Act.
The Act also requires solicitors to register prior to soliciting for charitable organizations in Pennsylvania, and fundraising counsels to register prior to providing services related to solicitations in Pennsylvania.
A "solicitation" is any direct or indirect request for a contribution where a representation is made that the contribution will be used for a charitable purpose. It includes, among other things, oral requests made in person, by telephone, radio, television, or other communication media; written requests; and sales of advertising space, chances, food, magazines, tickets, or other items of value.
A "contribution" is any promise, grant, or pledge of money, property, or other item in response to a solicitation, including the promise to pay for a performance, event, good or service.
While the Act generally requires organizations soliciting contributions in Pennsylvania to register with the bureau prior to doing so, certain organizations are specifically excluded or exempt from the Act.
Organizations which are not excluded or exempt must file an annual BCO-10 registration statement for its most recently completed fiscal year; a copy of its IRS 990 return; and the appropriate financial statements within 30 days of receiving more than $25,000 in gross national contributions or prior to compensating someone to solicit contributions from Pennsylvania residents. For more detailed information concerning the filing requirements for charitable organizations, please review the Instructions page of the registration packet.
First-time registrants must also submit copies of other official documents such as their organizational charter and by-laws.
Solicitors are hired by charitable organizations to solicit contributions directly or in the form of payment for goods, services, or admission to fundraising events.
Fundraising counsels are retained by charitable organizations to plan, manage, advise, consult, or prepare solicitation materials for the organizations. Unlike solicitors, fundraising counsels do not actually solicit contributions themselves or have custody or control of contributions.
Solicitors and fundraising counsels must also file annual registration statements with the bureau and file copies of their contracts with charitable organizations no less than 10 working days prior to conducting solicitation campaigns, events, or providing services. Solicitors must also obtain a $25,000 bond.
Edited 8/27/2003 | 