A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 33-56-50, RELATING TO ORGANIZATIONS EXEMPT FROM REGISTRATION PROVISIONS, SO AS TO INCREASE THRESHOLDS FOR CHARITIES REQUESTING EXEMPTIONS; BY AMENDING SECTION 33-56-70, RELATING TO CONTRACTS WITH PROFESSIONAL SOLICITORS, SO AS TO LIMIT FILING REQUIREMENTS TO COMMERCIAL CO-VENTURERS, UNDER CERTAIN CONDITIONS; BY AMENDING SECTION 33-56-90, RELATING TO REQUIRED DISCLOSURES, SO AS TO REQUIRE ANY ENTITY THAT IS SOLICITING FOR CHARITABLE ORGANIZATIONS TO DISCLOSE THE LEGAL NAME AND PURPOSE OF THE CHARITY FOR WHICH THEY ARE SOLICITING; BY AMENDING SECTION 33-56-110, RELATING TO REGISTRATION OF PROFESSIONAL SOLICITORS, FUND-RAISING COUNSELS, OR COMMERCIAL CO-VENTURERS, SO AS TO LIMIT REGISTRATION REQUIREMENTS FOR COMMERCIAL CO-VENTURERS SOLICITING MORE THAN TEN THOUSAND DOLLARS IN A SINGLE SOLICITATION CAMPAIGN; AND BY AMENDING SECTION 33-56-120, RELATING TO MISREPRESENTATIONS, SO AS TO PROHIBIT COMMERCIAL CO-VENTURERS FROM USING REGISTRATION WITH THE SECRETARY OF STATE AS AN ENDORSEMENT BY THE STATE.
Impact
If enacted, this bill will have significant implications for various charitable entities in South Carolina. By raising the financial thresholds for exemptions, smaller charities may find it easier to operate without the burden of regulatory compliance, potentially fostering increased charitable giving. However, the bill may also lead to less oversight of fundraising entities, which could present risks to donors if charitable organizations do not disclose relevant information effectively.
Summary
House Bill 4396 seeks to amend the South Carolina Code of Laws, particularly focusing on regulations that govern charitable fundraising. The bill introduces modifications to Section 33-56 regarding organizations exempt from registration provisions, raising the thresholds that allow certain charities to claim exemptions from mandatory registration. The bill also affects how contracts with professional solicitors are processed and alters requirements around disclosures made during fundraising solicitations.
Contention
The bill's points of contention lie primarily in the balance between making fundraising easier for charities while ensuring that donors are protected from fraud. Critics may argue that lowering registration requirements compromises transparency, potentially allowing unscrupulous solicitors to exploit the system. Another area of debate might involve the practical implications of the increased thresholds for various types of organizations, particularly smaller nonprofits that rely heavily on community support.
Provisions
The proposed changes extend to several sections, such as limiting filing requirements to those commercial co-venturers soliciting over a specified amount, enhancing disclosure requirements during solicitation events, and establishing penalties for professionals who fail to adhere to stated regulations. Furthermore, the bill stipulates that any endorsements or approvals claimed by commercial co-venturers based on their registration must not mislead the public.
Similar To
A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 33-56-50, RELATING TO ORGANIZATIONS EXEMPT FROM REGISTRATION PROVISIONS, SO AS TO REGULATE CHARITABLE ORGANIZATIONS THAT SOLICIT, COLLECT, EARN, OR RECEIVE MORE THAN A STATED AMOUNT IN A FISCAL YEAR THAT REGISTER WITH THE SECRETARY OF STATE BY INCREASING REPORT REQUIREMENTS; BY AMENDING SECTION 33-56-70, RELATING TO CONTRACTS WITH PROFESSIONAL SOLICITORS, SO AS TO REQUIRE WRITTEN CONTRACTS BETWEEN A CHARITABLE ORGANIZATION AND PROFESSIONAL FUNDRAISING COUNSEL, PROFESSIONAL SOLICITOR, OR COMMERCIAL CO-VENTURER TO BE FILED WITH THE SECRETARY OF STATE UNDER CERTAIN CONDITIONS; BY AMENDING SECTION 33-56-90, RELATING TO REQUIRED DISCLOSURES, SO AS TO REQUIRE ANY ENTITY THAT IS SOLICITING FOR CHARITABLE ORGANIZATIONS TO DISCLOSE THE LEGAL NAME AND PURPOSE OF THE CHARITY FOR WHICH THEY ARE SOLICITING; BY AMENDING SECTION 33-56-110, RELATING TO REGISTRATION OF PROFESSIONAL SOLICITORS, FUNDRAISING COUNSELS, OR COMMERCIAL CO-VENTURERS, SO AS TO PROVIDE REGISTRATION REQUIREMENTS FOR COMMERCIAL CO-VENTURERS; AND BY AMENDING SECTION 33-56-120, RELATING TO MISREPRESENTATIONS, SO AS TO PROHIBIT COMMERCIAL CO-VENTURERS FROM USING REGISTRATION WITH THE SECRETARY OF STATE AS AN ENDORSEMENT BY THE STATE.