Companies engaging in charitable sales promotions (i.e., commercial co-venturers) must register and file contracts and campaign reports in up to seven (7) states. As some states impose statutory late fees and penalties for failing to timely file, commercial co-venturers should pay attention to their filing …
read more
While most nonprofits are required to register in many states to conduct charitable fundraising, religious organizations are generally exempt from the registration requirement. It’s important to be aware, however, that the scope of the states’ religious exemption varies. Therefore, religious organizations should carefully review each …
read more
Last November, a group of crypto investors decided to try to buy an original copy of the U.S. Constitution which was coming up for auction at Sotheby’s on November 18, 2021.[1] But first, they had to solve a problem – the document, one of just …
read more
On October 7, 2021, California Governor Gavin Newsom signed into law Assembly Bill 488, which amends The Supervision of Trustees and Fundraisers for Charitable Purposes Act and establishes a new statutory framework to regulate online charitable fundraising platforms. In a joint press release issued by …
read more
Takeaway – Nonprofits can avoid risk by accepting and immediately liquidating donations of cryptocurrency. If they are planning to hold onto virtual currency for the long term, nonprofits should make sure they use platforms that are properly licensed and registered, and figure out how virtual …
read more
Takeaway – Nonprofits and consumer brands continue to find new ways to promote their collaborations. Take care that messages delivered at live events, in print, and online are consistent with the IRS rules regarding qualified sponsorships to avoid triggering unintended tax consequences for nonprofits. Online …
read more
When individuals consider establishing a new charitable program, they must decide whether to form a new nonprofit organization to do so.[1] Many will ultimately decide to implement their charitable project through a fiscal sponsorship instead. This article looks at the unique characteristics and benefits of …
read more
A professional fundraiser (“PFR”) is a person or entity who is hired to raise money on behalf of a charity. Forty-two states have laws regulating the activities of a PFR. Generally, these states require a PFR to register before conducting any fundraising activities, and file …
read more
Matching gift campaigns are a popular fundraising strategy used by charities to incentivize public donations with donations offered by one or more “match donors.” Types of Campaigns The core of a matching gift campaign is that a “match donor” offers to make a donation in …
read more
Takeaway – NFTs are gaining popularity. Charities are considering how they can take advantage of the NFT craze. In many ways, digital artwork and other digital assets are analogous to traditional artwork and physical assets. Nonprofits may need to conduct additional diligence on the platforms …
read more
The question may be answered this year as a significant donor privacy case will be going before the United States Supreme Court. On January 8th, 2021, the Court granted a writ for certiorari for the Ninth Circuit Court of Appeals decisions in Americans for Prosperity …
read more
What does this mean for charitable solicitation compliance? On February 8th, California Assemblywoman Jacqui Irwin introduced Assembly Bill 488, which would establish a new statutory framework for the ever-evolving world of online charitable fundraising platforms.[1] The proposed bill for “charitable fundraising platforms” and “platform charities” …
read more
Each year the National Association of Attorneys General and National Association of State Charities Officials hold a conference where state regulators, nonprofits, and their advisors can meet and discuss issues that are of interest to the nonprofit community. Traditionally, the first two days of the …
read more
*NOTE – links included herein are for informational purposes only. Neither the author nor the firm are in any way affiliated with any of the individuals or in any way endorse the influencers, their campaigns, or their beneficiaries* In the run up to this year’s …
read more
Are you looking for answers to legal questions that arise in cause marketing and corporate partnerships? If so, look no further! Last year, Selfishgiving.com founder and blogger Joe Waters and I distributed a five-question survey to businesses and nonprofits regularly engaged in cause marketing and corporate …
read more
With the rapid spread of the new coronavirus (COVID-19), life has been disrupted in a variety of ways. Conferences and events have been canceled around the world while international travel has been cut back by many organizations. What should you do if your nonprofit organization …
read more
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 …
read more
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 …
read more
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 …
read more
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 …
read more
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 …
read more
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 …
read more
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, …
read more
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 …
read more
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. …
read more
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 …
read more
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 …
read more
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 …
read more
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 …
read more
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 …
read more
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 …
read more
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 …
read more
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 …
read more
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 …
read more
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 …
read more
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 …
read more
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 …
read more