§ 33-56-70 — Contracts with professional solicitors to be in writing; filing requirements; joint financial report for each campaign; penalty for noncompliance.

South Carolina § 33-56-70

• Jurisdiction: South Carolina
• Title 33: CORPORATIONS, PARTNERSHIPS AND ASSOCIATIONS
• Ch. 56: SOLICITATION OF CHARITABLE FUNDS

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(A) A contract or agreement between any professional fundraising counsel, professional solicitor, or commercial co-venturer and a charitable organization must be in writing and filed with the Secretary of State at least ten days before the professional fundraising counsel, professional solicitor, or commercial co-venturer begins any solicitation activity or any other activity contemplated by the contract or agreement in this State. In addition, a professional solicitor or commercial co-venturer shall attach a completed Notice of Solicitation form that complies with the requirements of this section to the contract or agreement filed with the Secretary of State. (B) A contract filed pursuant to this section must disclose the following, if applicable: (1) legal name and alias name, address, and registration number, if any, of the professional solicitor, professional fundraising counsel, or commercial co-venturer; (2) legal name, address, and registration number of the charitable organization; (3) name and residence address of each person directing or supervising the contract solicitation services; (4) description of the event or campaign; (5) date the solicitation or campaign will commence; (6) date the solicitation or campaign will terminate; (7) statement of the amount or guaranteed minimum percentage of gross receipts to be remitted or retained by the charitable organization, excluding the amount which the charitable organization must pay for fundraising costs; (8) statement of the amount or percentage of gross receipts with which the professional solicitor, professional fundraising counsel, or commercial co-venturer is compensated, including the amount the professional solicitor, professional fundraising counsel, or commercial co-venturer must be reimbursed as payment for fundraising costs; and (9) if applicable, the maximum dollar amount that will benefit the charitable organization. (C) Every Notice of Solicitation form filed pursuant to this section must disclose: (1) legal name and alias name, address, and registration number of the professional solicitor or commercial co-venturer; (2) legal name, address, and registration number of the charitable organization; (3) date the solicitation activity will commence and terminate in this State; (4) name and residence address of phone room directors for any solicitation activities; (5) location, including physical address, and telephone numbers from which the solicitation activity, including telephone solicitations, is conducted; (6) description of all solicitation activity; and (7) the terms of remuneration for the campaign or event pursuant to the contract. (D) Solicitations or services pursuant to a contract or agreement between a charitable organization and a professional solicitor, professional fundraising counsel, or commercial co-venturer may not begin in this State until the contract or agreement has been filed with the Secretary of State and until both the charitable organization and the professional solicitor, professional fundraising counsel, or commercial co-venturer are registered properly with the Secretary of State. (E) Within ninety days after a solicitation campaign has been completed, or within ninety days after the anniversary of a solicitation campaign lasting more than one year, a professional solicitor or commercial co-venturer shall file with the Secretary of State a joint financial report for the campaign, including gross revenue, an itemization of expenses, and the amount paid to the charitable organization. This joint financial report must be completed on the form prescribed by the Secretary of State, signed by both an authorized official of the professional solicitor or commercial co-venturer and an authorized official of the charitable organization, and certified to be true. (F) A professional solicitor, professional fundraising counsel, or commercial co-venturer shall cease all solicitation or any other activity conducted pursuant to a contract or agreement with a charitable organization in this State, upon receipt of notice from the charitable organization or the Secretary of State that the registration of the charitable organization with the Secretary of State has expired or has been terminated or suspended. (G) A professional fundraising counsel, professional solicitor, or commercial co-venturer failing to comply with this section is ineligible to renew its registration or continue solicitation activities or campaigns until the required information is filed and is liable for an administrative fine not to exceed ten dollars for each day of noncompliance, with a maximum fine of two thousand dollars for each separate violation.

Legislative History

HISTORY: 1994 Act No. 461, SECTION 1; 1996 Act No. 458, Part II, SECTION 28H; 1998 Act No. 368, SECTION 9; 2000 Act No. 336, SECTION 1; 2014 Act No. 135 (H.3367), SECTION 3, eff March 13, 2014. Effect of Amendment 2014 Act No. 135, SECTION 3, rewrote subsection (A); in subsection (B)(5), substituted "will commence" for "commences"; in subsection (B)(6), substituted "will terminate" for "terminates"; in subsections (B)(7) and (B)(8), inserted "amount or" after "statement of the"; in subsection (C)(1), deleted "professional fundraising counsel," following "professional solicitor"; in subsection (C)(3), substituted "will commence and terminate in this State" for "commences and terminates"; inserted subsection (D) and renumbered former subsection (D) as (E); in subsection (E), substituted "a professional" for "the professional", substituted "a professional solicitor or commercial co-venturer shall" for "professional solicitor must", substituted "charitable organization" for "sponsor", and inserted "or commercial co-venturer"; added subsection (F); and redesignated former subsection (E) as subsection (G).