§ 50-22-01 — Definitions

North Dakota § 50-22-01

• Jurisdiction: North Dakota
• Title 50: Public Welfare
• Ch. 50-22: Charitable Organizations Soliciting Contributions

Text

As used in this chapter, unless the context otherwise requires:
1. "Accounting year" means the twelve-month period on which a charitable organization
keeps its financial records.
2. a. "Charitable organization" means a person that engages in or purports to engage
in solicitation for a charitable purpose and includes a chapter, branch, area office,
or similar affiliate or a person soliciting contributions within the state for a parent
charitable organization.
b. The term "charitable organization" does not include:
(1) An organization that solicits funds for an institution of higher learning.
(2) An organization that uses only volunteer unpaid fundraisers and that solicits
funds for a political subdivision or other government entity or for a civic or
community project in which the contributions received are used solely for the
project and none of the contributions inure to the benefit of any individual.
(3) A private or public elementary or secondary school.
(4) A charitable organization or person that solicits contributions for any person
specified by name at the time of the solicitation if all the contributions
received are transferred within a reasonable time after receipt to the person
named or that person's parent, guardian, or conservator with no restriction
on their expenditure and with no deduction.
(5) A religious society or organization that is exempt from filing a federal annual
information return pursuant to Internal Revenue Code section 6033(a)(2)(A)
(i) and (iii) [26 U.S.C. 6033(a)(2)(A)(i) and (iii)] or Internal Revenue Code
section 6033(a)(2)(C)(i) [26 U.S.C. 6033(a)(2)(C)(i)].
(6) Any candidate for national, state, or local elective office or political party or
other committee required to file information with the federal election
commission, a state election commission, or an equivalent office or agency.
3. "Charitable purpose" means a charitable, benevolent, philanthropic, religious, social
service, welfare, educational, cultural, artistic, or public interest purpose, either actual
or purported.
4. "Contribution" means cash or the promise, grant, or pledge of any money, credit,
assistance, or property of any kind or value, including the promise to pay, provided in
response to a solicitation. "Contribution" includes, in the case of a charitable
organization offering goods and services to the public, the difference between the
direct cost of the goods and services to the charitable organization and the price at
which the charitable organization or a person acting on behalf of that organization
resells those goods or services to the public. "Contribution" does not include bona fide
fees, dues, or assessments paid by members of an organization, provided that:
a. Membership is not conferred in exchange for a contribution in response to a
solicitation; or
b. Membership provides no benefit in addition to the right to vote or otherwise
participate in the organization and the right to receive literature.
5. "Person" means any individual, organization, association, partnership, corporation, or
limited liability company.
6. "Professional fundraiser" means a person who, for financial compensation or profit,
performs for a charitable organization a service in connection with which contributions
are, or will be, solicited in this state by the compensated person or by a compensated
person the person employs, procures, or engages to solicit; or a person who for
compensation or profit plans, manages, advises, consults, or prepares material for, or
with respect to, the solicitation in this state of contributions for a charitable
organization. A bona fide full-time salaried officer or employee of a charitable
organization maintaining a permanent establishment within the state may not be
deemed to be a professional fundraiser.

An attorney, investment counselor, or banker who advises any person to make a
contribution to a charitable organization may not be deemed, as the result of that
advice, to be a professional fundraiser.
7. "Solicitation" and "solicit" mean the request to the public or member of the public for a
contribution on the representation that the contribution will be used in whole or in part
for a charitable purpose, including:
a. An oral request made in person or by telephone, radio, television, electronic
communication including the internet, or other advertising or communication
media;
b. A written or other recorded or published request, that is mailed, sent, delivered,
circulated, distributed, posted in a public place, or advertised or communicated
through any medium available to the public and described in subdivision a;
c. A sale of or attempt to sell any good or service in which the good or service is
priced above fair market value or when it is otherwise represented that some
portion of the purchase price will be used for a charitable purpose; or
d. An announcement inviting the public to attend an assembly, event, exhibition,
performance, or social gathering of any kind where admission is conditioned on
the receipt of a contribution or at which function contributions will be otherwise
solicited.
A solicitation is deemed to have occurred regardless of whether the party solicited
makes a contribution.