Almost two dozen states announced that they have entered into a multi-state settlement agreement with PayPal Charitable Giving Fund (“PPGF”) to ensure that donors have adequate information to make informed decisions when giving through PPGF’s online fundraising platform. As part of the settlement, PPGF has …
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When used strategically, corporate foundations can advance a company’s philanthropic goals. However, operating a corporate foundation comes with many legal obligations. A company’s social impact goals may often be achieved more effectively or efficiently through other strategies. Therefore, it’s critical to assess the value proposition …
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Some States Require Fundraising Counsel to Register Twenty-five states require fundraising counsel to register prior to providing services. The state’s interest is to protect charitable assets for their intended use and to ensure that donations contributed by state residents are not misapplied through fraud or other …
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Corporate social responsibility (“CSR”) has become an essential and increasingly public part of a company’s business strategy for long-term success. A company’s CSR strategy reflects its approach to operating the business while considering its impact on society, including its social, economic, and environmental impact. CSR …
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The 2018 conference of the National Association of Attorneys General/National Association of State Charity Officials (NAAG/NASCO), convened on October 1st with the theme of “Charities in a World of Change.” The agenda included discussions on developments in nonprofit governance and accounting, self-regulatory standard setting, and …
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Sixteen state agencies have entered into a settlement agreement with Tennessee-based charity Operation Troop Aid (“OTA”) for engaging in a nationwide cause marketing campaign that violated state charitable solicitation laws. According to the settlement agreement announced on July 19th, OTA violated state charitable solicitation laws …
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Seven years ago, I wrote “Navigating Joint Cost Allocations: Top Five Mistakes to Avoid for the newsletter of the Association of Fundraising Professionals. In that article I pointed out common mistakes that nonprofits make in conducting joint cost allocations on their fundraising activities. In 2018, …
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Technological innovation and the proliferation of data continue to impact nonprofits requiring organizations to rethink programs, fundraising efforts and internal processes to maximize impact in a shifting landscape. It is not surprising, then, that when state charity regulators from across the country convened for this …
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Whenever a client comes to us to start a new nonprofit, one of the first topics we discuss is where to incorporate the new organization. We often recommend incorporation in Delaware, regardless of where the nonprofit plans to operate. Here are a few reasons why. …
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On March 21st, the Federal Trade Commission (FTC) and the National Association of State Charities Officials (NASCO) hosted “Give and Take: Consumers, Contributions and Charity,” a conference exploring the intersection between consumer protection issues and charitable solicitations, with a focus on new and evolving fundraising …
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The rapid growth of online and social media fundraising activities has caught the attention of state charity regulators. Yet, very little guidance exists that helps businesses, particularly technology companies new to the charitable fundraising space, analyze their compliance obligations under state charitable solicitation laws. In …
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If you answered either “no” or “what disclosures?”, you are not alone. Many organizations are either not aware of the requirement to include a disclosure statement in their solicitations or have not recently reviewed their disclosures. Be warned, however, that it is important to understand …
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Many charities rely on signature annual events to financially support their mission-driven work. A common activity at these events is a live and/or silent auction in which the charity solicits donations from individuals and businesses. While auctions can provide meaningful financial support, they also create …
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Have you ever wondered: Which cause marketing practices are regulators most concerned about? What are the biggest do’s and don’ts in drafting (and placing) campaign details and disclosures? When should I reach out to my legal counsel on a new or potential cause marketing campaign? I answer these …
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The National Association of State Charity Officials (NASCO) recently posted tips on internet and social media fundraising to help charities and fundraising platforms understand their rights and obligations, and to help donors make informed giving decisions. The tips highlight four key concerns that state charity regulators …
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Canada’s Anti-Spam Legislation (“CASL”), which became effective on July 1, 2014, requires nonprofit organizations (and others) to obtain consent from recipients in Canada before sending them certain electronic marketing and fundraising messages, and it imposes strict requirements for the content of such messages. CASL applies …
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In recent years, fundraising and cause marketing trends have been on the rise, particularly those utilizing strong social networks. Local and grassroots community engagement, each with unique features and legal considerations, are worth noting. National Localized Cause Marketing According to the 2013 Cone Communications Social …
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Nonprofits have steadily increased their adoption of social media and other online engagement strategies. The unifying objective? To convert some of the time individuals are already spending online into supporter loyalty, education, and action. The online marketing strategies being used are quite diverse, including: Facebook …
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A number of states require disclosure notice statements on all written materials used when soliciting contributions. Most often the disclosure notice is required to be included on every printed solicitation or written confirmation, receipt, and reminder of a contribution. Customary examples of printed solicitations are …
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For-profit companies that are in the business of providing charitable fundraising services often look to grow strategically through a merger or acquisition, but one of the details that is often overlooked by mergers and acquisitions (M&A) attorneys is proper planning for fundraising regulatory compliance. The …
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The New York Attorney General has issued “Five Best Practices for Transparent Cause Marketing,” and strongly urges charities and companies that engage in cause marketing to adopt these recommendations, which have been endorsed by the Better Business Bureau Wise Giving Alliance, and adopted by Susan …
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