GuideStar webinar on 05/08/12. Presenters: Karl E. Emerson, Of Counsel, Montgomery McCracken, and Chuck McLean, Vice President, Research, GuideStar USA, Inc. http://www2.guidestar.org/rxg/news/webinars/webinar-archive.aspx

1. Everything You Wanted To Know
About State Charitable Solicitation
Statutes, But Were Afraid To Ask
Karl E. Emerson
Montgomery, McCracken, Walker & Rhoads, LLP
kemerson@mmwr.com
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2. Speakers
• Karl E. Emerson, Of Counsel,
Montgomery McCracken
• Chuck McLean, Vice President,
Research, GuideStar USA, Inc.
(Moderator)
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3. The Ten Basic Things Every Charity Soliciting
Contributions Needs To Know
-1-
• Determine whether your organization needs to
register under the charitable solicitation statute
of your home state, if any.
– Charitable solicitation statutes typically require your
organization to register prior to soliciting
contributions.
– Significant fines and penalties can be imposed for
unregistered solicitation.
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4. The Ten Basic Things Every Charity Soliciting
Contributions Needs To Know
-2-
• Make sure your organization is in compliance
with applicable state charitable solicitation
statutes in all states where it solicits
contributions.
– If your organization is not exempt or excluded from
registration in a state where it is soliciting
contributions, register as soon as possible.
– Don’t wait for one or more states to “catch you”.
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5. The Ten Basic Things Every Charity Soliciting
Contributions Needs To Know
-3-
• Make sure your organization’s IRS 990
Returns and other registration materials filed
with the IRS and/or state registration offices
are:
– Accurate
– Complete
– Free of material falsifications, misrepresentations,
and omissions
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6. The Ten Basic Things Every Charity Soliciting
Contributions Needs To Know
-4-
• Once properly registered, be sure to maintain your
registration by:
– Filing timely extension requests each year
– Renewing your registrations by the required due
dates each year
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7. The Ten Basic Things Every Charity Soliciting
Contributions Needs To Know
-5-
• Make sure all your organization’s professional
fundraisers (both professional fundraising
counsels and professional solicitors) are:
– Properly registered and
– Have filed copies of their contracts with state
oversight agencies as required
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8. The Ten Basic Things Every Charity Soliciting
Contributions Needs To Know
-6-
• Make sure all your organization’s solicitation
materials contain any disclosure statements
required by statutes.
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9. The Ten Basic Things Every Charity Soliciting
Contributions Needs To Know
-7-
• Make sure any commercial co-venturers that
are conducting charitable sales promotions for
your organization are:
– Properly registered
– Have the required bonds
– Have filed copies of your contracts and other
required forms with all states where commercial co-
venturers are required to register
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10. The Ten Basic Things Every Charity Soliciting
Contributions Needs To Know
-8-
• Make sure your organization’s solicitation
materials are:
– Truthful
– Free of material false statements,
misrepresentations, and/or omissions
Note: Make sure your organization doesn’t engage in
any conduct prohibited by any state charitable
solicitation statute
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11. The Ten Basic Things Every Charity Soliciting
Contributions Needs To Know
-9-
• Make sure your organization is keeping true
and accurate fiscal records ----- even if it is
exempt from state registration requirements.
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12. The Ten Basic Things Every Charity Soliciting
Contributions Needs To Know
-10-
• Make sure your organization is:
– Paying all your key executives only “reasonable
compensation” and not “excessive compensation”
– Properly forwarding all required withholding taxes to
the IRS and state taxing authorities
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13. Questions?
Karl E. Emerson
Montgomery, McCracken, Walker & Rhoads, LLP
123 South Broad Street
Philadelphia, PA 19109
(215) 772-7314
kemerson@mmwr.com
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14. Connect with GuideStar
• Facebook.com/GuideStarUSA
• Twitter: @GuideStarUSA; @Philanthropedia
#guidestarexchange
• Google +: +GuideStar
• Pinterest.com/guidestar/
• GX Connects: gxconnects.ning.com
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