§ 23-7-8-2 — Registration; required disclosure of information; term; renewal; contract; notice

Indiana § 23-7-8-2

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 7: GENERAL CIVIL OR CHARITABLE
• Ch. 8: Professional Fundraiser Consultant and Solicitor

Text

(a) A person may not act as a professional
fundraiser consultant or professional solicitor for a charitable
organization unless the person has first registered with the division. A
person who applies for registration shall disclose the following
information while under oath:
(1) The names and addresses of all officers, employees, and
agents who are actively involved in fundraising or related
activities.
(2) The names and addresses of all persons who own a ten percent
(10%) or more interest in the registrant.
(3) A description of any other business related to fundraising
conducted by the registrant or any person who owns ten percent
(10%) or more interest.
(4) The name or names under which it intends to solicit
contributions.
(5) Whether the organization has ever had its registration denied,
suspended, revoked, or enjoined by any court or other
governmental authority.
(b) A registrant shall notify the division in writing within one
hundred eighty (180) days of any change in the information contained
in the registration. However, if requested by the division, the solicitor
has fifteen (15) days to notify the division of any change in the
information.
(c) Before acting as a professional fundraiser consultant for a
particular charitable organization, the consultant must enter into a
written contract with the organization and file this contract with the
division. The contract must identify the services that the professional
fundraiser consultant is to provide, including whether the professional
fundraiser consultant will at any time have custody of contributions.
(d) Before a professional solicitor engages in a solicitation, the
professional solicitor must have a contract which is filed with the
division. This contract must specify the percentage of gross
contributions which the charitable organization will receive or the
terms upon which a determination can be made as to the amount of the
gross revenue from the solicitation campaign that the charitable
organization will receive. The amount of gross revenue from the
solicitation campaign that the charitable organization will receive must
be expressed as a fixed percentage of the gross revenue or expressed
as a reasonable estimate of the percentage of the gross revenue. If a
reasonable estimate is used, the contract must clearly disclose the
assumptions or a formula upon which the estimate is based. If a fixed
percentage is used, the percentage must exclude any amount that the
charitable organization is to pay as expenses of the solicitation
campaign, including the cost of the merchandise or services sold. If
requested by the charitable organization, the person who solicits must
at the conclusion of a charitable appeal provide to the charitable
organization a final accounting of all expenditures. The final
accounting may not be used in violation of any trade secret laws. The
contract must disclose the average percentage of gross contributions
collected on behalf of charitable organizations that the charitable
organizations received from the professional solicitor for the three (3)
years preceding the year in which the contract is formed. The contract
also must specify that, at least every ninety (90) days, the professional
solicitor shall provide the charitable organization with access to and
use of information concerning contributors, including the name,
address, and telephone number of each contributor and the date and
amount of each contribution. A professional solicitor may not restrict
a charitable organization's use of contributor information.
(e) Before beginning a solicitation campaign, a professional solicitor
must file a solicitation notice with the division. The notice must include
the following:
(1) A copy of the contract described in subsection (d).
(2) The projected dates when soliciting will begin and end.
(3) The location and telephone number from where solicitation
will be conducted.
(4) The name and residence address of each person responsible
for directing and supervising the conduct of the campaign.
However, the division shall not divulge the residence address
unless ordered to do so by a court of competent jurisdiction, or in
furtherance of the prosecution of a violation under this chapter.
(5) If the solicitation is one described under section 7(a)(3) of this
chapter, the solicitation notice must include a copy of the required
written authorization.
(f) Not later than ninety (90) days after a solicitation campaign has
ended and not later than ninety (90) days after the anniversary of the
commencement of a solicitation campaign lasting more than one (1)
year, a professional solicitor shall submit the following information
concerning the campaign to the division:
(1) The total gross amount of money raised by the professional
solicitor and the charitable organization from donors.
(2) The total amount of money paid to or retained by the
professional solicitor.
(3) The total amount of money, not including the amount
identified under subdivision (2), paid by the charitable
organization as expenses as part of the solicitation campaign.
(4) The total amount of money paid to or retained by the
charitable organization after the amounts identified under
subdivisions (2) and (3) are deducted.
The division may deny or revoke the registration of a professional
solicitor who fails to comply with this subsection.
(g) The charitable organization on whose behalf the professional
solicitor is acting must certify that the information filed under
subsections (e) and (f) is true and complete to the best of its
knowledge.
(h) At the beginning of each solicitation call, a professional
fundraiser consultant and a professional solicitor must state all of the
following:
(1) The name of the company for whom the professional
fundraiser consultant or professional solicitor is calling.
(2) The name of the professional fundraiser consultant or
professional solicitor.
(3) The phone number and address of the location from which the
professional fundraiser consultant or professional solicitor is
making the telephone call.
(4) The percentage of the charitable contribution that will be
expended for charitable purposes after administrative costs and
the costs of making the solicitation have been satisfied.
(i) At least every ninety (90) days, a professional solicitor shall
provide each charitable organization on whose behalf the professional
solicitor is acting with access to and use of information concerning
contributors, including the name, address, and telephone number of
each contributor and the date and amount of each contribution. A
professional solicitor may not restrict a charitable organization's use of
information provided under this subsection.

Legislative History

As added by P.L.245-1983, SEC.1. Amended by P.L.248-1987, SEC.2; P.L.24-1989, SEC.3; P.L.48-1998, SEC.1; P.L.135-1999, SEC.8; P.L.155-2003, SEC.1; P.L.97-2004, SEC.86; P.L.245-2005, SEC.2.