Navigating the Maze

Tips and News to help you stay compliant

Should Our Company Establish a Corporate Foundation?

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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Advising Nonprofits on their Fundraising Strategy? You May Need to Register

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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The Hidden Engine Driving CSR? It’s the Nonprofit Sector…

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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2018 NAAG/NASCO Conference - Update on the State Charity Regulatory Landscape

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 States Enter into Settlement Agreement with Charity Involved in Unlawful Cause Marketing Campaign

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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Joint Cost Allocations Under Scrutiny by State Regulators: Avoid These Mistakes

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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The Impact of Technology on Charities Regulation: Takeaways from the Annual NAAG/NASCO Conference

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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Why Delaware - The most popular state for new businesses and new nonprofits

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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FTC/NASCO Conference on Consumer Protection and Charitable Solicitation Highlights a Rapidly Evolving Landscape

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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California Attorney General Issues Guidance on Charity Crowdfunding Platform Regulation

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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State Charity Regulators Offer Tips on Internet and Social Media Fundraising

 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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Sending Email to Canada? Think First. Canada’s Anti-Spam Law Requires Prior Consent in Many Cases

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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Trends in Fundraising & Cause Marketing – Local and Grassroots Engagement

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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Website Solicitation

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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