Relating To Solicitation Of Funds From The Public.
SB1311 revises Hawaii’s charitable solicitation laws to create a more specific regulatory framework for “platform charities” and charitable fundraising platforms operating in the state. The bill requires platform charities to register with the Department of Commerce and Consumer Affairs before conducting regulated activities, comply with annual reporting and filing fee requirements, and meet “good standing” standards. It also clarifies that platform charities may only facilitate solicitations for recipient charitable organizations that are in good standing and may rely on the department’s registry to verify that status.
The bill adds detailed disclosure requirements for online and other solicitation activities. Before a donor completes a contribution or changes a recipient charity, the platform must disclose who is receiving the donation, whether the charity may not receive the funds, how long transfer may take, what fees may be deducted, and whether the donation is tax-deductible. It also requires written consent before using a charity’s name in a solicitation, prompt tax receipts to donors, segregation of donated funds from other assets, inspection access to vendor contracts, and prompt transfer of funds to recipient charities. The bill also updates definitions and aligns related provisions governing professional solicitors, charitable fundraising platforms, and contracts with charitable organizations.
SB1311 would amend multiple provisions of chapter 467B, Hawaii Revised Statutes, to fold platform charities more explicitly into the state’s charitable solicitation regulatory scheme. It revises definitions, expands registration and reporting obligations, imposes fee and bond requirements where applicable, and updates contract, disclosure, and recordkeeping rules. The bill also removes duplicative references and harmonizes the treatment of charitable fundraising platforms and platform charities, while preserving the attorney general’s oversight and enforcement authority. The measure is set to take effect on January 1, 2026.
The bill appears to be generally supportive of stronger consumer protection and transparency in online charitable fundraising, based on its detailed disclosure, reporting, and anti-misuse provisions. Although no committee transcripts or recorded votes were provided, the bill’s structure suggests a regulatory cleanup effort aimed at clarifying responsibilities and reducing duplication rather than imposing a wholly new regime. The overall tone of the measure is precautionary and administrative, focused on accountability and donor protection.
The main points of potential contention are the added compliance burden on charitable fundraising platforms and platform charities, including registration, reporting, fee, bond, contract-filing, and disclosure requirements. Charitable organizations and platform operators may also be concerned about the scope of “good standing” determinations, the requirement to obtain written consent before using a charity’s name, and the vicarious liability language tying platform charities to misuse by fundraising platforms and vice versa. On the other hand, supporters would likely emphasize that these provisions are intended to reduce deception, protect donors, and ensure funds reach intended charities.