2009 California Business and Professions Code - Section 17510-17510.95 :: Article 1.3. Charitable Solicitations

17510.  (a) The Legislature finds that there exists in the area of
solicitations and sales solicitations for charitable purposes a
condition which has worked fraud, deceit and imposition upon the
people of the state which existing legal remedies are inadequate to
correct. Many solicitations or sales solicitations for charitable
purposes have involved situations where funds are solicited from the
citizens of this state for charitable purposes, but an insignificant
amount, if any, of the money solicited and collected actually is
received by any charity. The charitable solicitation industry has a
significant impact upon the well-being of the people of this state.
The provisions of this article relating to solicitations and sale
solicitations for charitable purposes are, therefore, necessary for
the public welfare.
   (b) The Legislature declares that the purpose of this article is
to safeguard the public against fraud, deceit and imposition, and to
foster and encourage fair solicitations and sales solicitations for
charitable purposes, wherein the person from whom the money is being
solicited will know what portion of the money will actually be
utilized for charitable purposes. This article will promote
legitimate solicitations and sales solicitation for charitable
purposes and restrict harmful solicitation methods, thus the people
of this state will not be misled into giving solicitors a substantial
amount of money which may not in fact be used for charitable
purposes.

17510.1.  As used in this article, "sale" shall include a gift made
with the hope or expectation of monetary compensation.

17510.2.  (a) As used in this article, "solicitation for charitable
purposes," means any request, plea, entreaty, demand, or invitation,
or attempt thereof, to give money or property, in connection with
which any of the following applies:
   (1) Any appeal is made for charitable purposes.
   (2) The name of any charity, philanthropic or charitable
organization is used or referred to in any such appeal as an
inducement for making any such gift.
   (3) Any statement is made to the effect that the gift or any part
thereof will go to or be used for any charitable purpose or
organization.
   (4) The name of any organization of law enforcement personnel,
firefighters, or other persons who protect the public safety is used
or referred to as an inducement for transferring any money or
property, unless the only expressed or implied purpose of the
solicitation is for the sole benefit of the actual active membership
of the organization.
   (b) As used in this article, "sales solicitation for charitable
purposes" means the sale of, offer to sell, or attempt to sell any
advertisement, advertising space, book, card, chance, coupon device,
magazine subscription, membership, merchandise, ticket of admission
or any other thing or service in connection with which any of the
following applies:
   (1) Any appeal is made for charitable purposes.
   (2) The name of any charity, philanthropic or charitable
organization is used or referred to in any such appeal as an
inducement for making any such sale.
   (3) Any statement is made to the effect that the whole or any part
of the proceeds from the sale will go to or be used for any
charitable purpose or organization.
   (4) The name of any organization of law enforcement personnel,
firefighters, or other persons who protect the public safety is used
or referred to as an inducement for transferring any money or
property, unless the only expressed or implied purpose of the sales
solicitation is for the sole benefit of the actual active membership
of the organization.
   (c) A solicitation for charitable purposes, or a sale, offer or
attempt to sell for charitable purposes, shall include the making or
disseminating or causing to be made or disseminated before the public
in this state, in any newspaper or other publication, or any
advertising device, or by public outcry or proclamation, or in any
other manner or means whatsoever any such solicitation.
   (d) For purposes of this article, "charity" shall include any
person who, or any nonprofit community organization, fraternal,
benevolent, educational, philanthropic, or service organization, or
governmental employee organization which, solicits or obtains
contributions solicited from the public for charitable purposes or
holds any assets for charitable purposes.

17510.25.  (a) A charity, as defined in subdivision (e), may engage
in a solicitation for charitable purposes that involves persons
standing in a public roadway soliciting contributions from passing
motorists, if both of the following requirements are met:
   (1) The persons to be engaged in the solicitation are law
enforcement personnel, firefighters, or other persons employed to
protect the public safety of a local agency, as defined in
subdivision (d), and that are soliciting solely in an area that is
within the service area of that local agency.
   (2) The charity files an application with the city, county, or
city and county, as applicable, having jurisdiction over the location
or locations where the solicitation is to occur. The application
shall be filed not later than 10 business days before the date that
the solicitation is to begin and shall include all of the following:
   (A) The date or dates and times of day when the solicitation is to
occur.
   (B) The location or locations where the solicitation is to occur.
   (C) The manner and conditions under which the solicitation is to
occur.
   (D)  Proof of a valid liability insurance policy in the amount of
at least one million dollars ($1,000,000) insuring the charity, the
local agency referenced in paragraph (1), and the city, county, or
city and county referenced in this paragraph against bodily injury
and property damage arising out of or in connection with the
solicitation.
   (b) The city, county, or city and county shall approve the
application within five business days of the filing date of the
application, but may impose reasonable conditions in writing that are
consistent with the intent of this section and that are based on
articulated public safety concerns.
   (c) By acting under this section, a local agency referred to in
paragraph (1) of subdivision (a) and a city, county, or city and
county referred to in paragraph (2) of subdivision (a) do not waive
or limit any immunity from liability provided by any other provision
of law.
   (d) For purposes of this section, "local agency" means a city,
county, city and county, special district, joint powers authority, or
other political subdivision of the state.
   (e) For purposes of this section, "charity" means a charity
subject to supervision by the Attorney General pursuant to Article 7
(commencing with Section 12580) of Chapter 6 of Part 2 of Division 3
of Title 2 of the Government Code.
   (f) The Legislature finds and declares that the extraordinary
liability insurance requirement contained in this section is
necessary in order to protect the public safety due solely to the
particular and unique circumstances governed by this section that
involve charitable solicitations from passing motorists in a public
roadway, where the activity of solicitation may present a
recognizable potential safety hazard.
   (g) This section is not intended to prevent a local agency from
adopting an ordinance regulating the time, place, or manner of
charitable solicitations in a public roadway by other persons or
charities.

17510.3.  (a) Prior to any solicitation or sales solicitation for
charitable purposes, the solicitor or seller shall exhibit to the
prospective donor or purchaser a card entitled "Solicitation or Sale
for Charitable Purposes Card." The card shall be signed and dated
under penalty of perjury by an individual who is a principal, staff
member, or officer of the soliciting organization. The card shall
give the name and address of the soliciting organization or the
person who signed the card and the name and business address of the
paid individual who is doing the actual soliciting.
   In lieu of exhibiting a card, the solicitor or seller may
distribute during the course of the solicitation any printed
material, such as a solicitation brochure, provided the material
complies with the standards set forth below, and provided that the
solicitor or seller informs the prospective donor or purchaser that
the information as required below is contained in the printed
material.
   Information on the card or printed material shall be presented in
at least 10-point type and shall include the following:
   (1) The name and address of the combined campaign, each
organization, or fund on behalf of which all or any part of the money
collected will be utilized for charitable purposes.
   (2) If there is no organization or fund, the manner in which the
money collected will be utilized for charitable purposes.
   (3) The non-tax-exempt status of the organization or fund, if the
organization or fund for which the money or funds are being solicited
does not have a charitable tax exemption under both federal and
state law.
   (4) The percentage of the total gift or purchase price which may
be deducted as a charitable contribution under both federal and state
law. If no portion is so deductible the card shall state that "This
contribution is not tax deductible."
   (5) If the organization making the solicitation represents any
nongovernmental organization by any name which includes, but is not
limited to, the term "officer," "peace officer," "police," "law
enforcement," "reserve officer," "deputy," "California Highway
Patrol," "Highway Patrol," "deputy sheriff," "firefighter," or "fire
marshall," which would reasonably be understood to imply that the
organization is composed of law enforcement or firefighting
personnel, the solicitor shall give the total number of members in
the organization and the number of members working or living within
the county where the solicitation is being made, and if the
solicitation is for advertising, the statewide circulation of the
publication in which the solicited ad will appear.
   (6) If the organization making the solicitation represents any
nongovernmental organization by any name which includes, but is not
limited to, the term "veteran" or "veterans," which would reasonably
be understood to imply that the organization is composed of veterans,
the solicitor shall give the total number of members in the
organization and the number of members working or living within the
county where the solicitation is being made. This paragraph does not
apply to federally chartered or state incorporated veterans'
organizations with 200 or more dues paying members or to a thrift
store operated or controlled by a federally chartered or state
incorporated veterans' organization. This paragraph does not apply to
any state incorporated community-based organization that provides
direct services to veterans and their families and qualifies as a
tax-exempt organization under Section 501(c)(3) or 501(c)(19) of the
Internal Revenue Code and Section 23701d of the Revenue and Taxation
Code.
   (b) Knowing and willful noncompliance by any individual volunteer
who receives no compensation of any type from or in connection with a
solicitation by any charitable organization shall subject the
solicitor or seller to the penalties of the law.
   (c) When the solicitation is not a sales solicitation, any
individual volunteer who receives no compensation of any type from,
or in connection with, a solicitation by any charitable organization
may comply with the disclosure provisions by providing the name and
address of the charitable organization on behalf of which all or any
part of the money collected will be utilized for charitable purposes,
by stating the charitable purposes for which the solicitation is
made, and by stating to the person solicited that information about
revenues and expenses of the organization, including its
administration and fundraising costs, may be obtained by contacting
the organization's office at the address disclosed. The organization
shall provide this information to the person solicited within seven
days after receipt of the request.
   (d) A volunteer who receives no compensation of any type from, or
in connection with, a solicitation or sales solicitation by a
charitable organization which has qualified for a tax exemption under
Section 501(c)(3) of the Internal Revenue Code of 1954, and who is
18 years of age or younger, is not required to make any disclosures
pursuant to this section.
   (e) If any provision of this section or the application thereof to
any person or circumstances is held invalid, that invalidity shall
not affect other provisions or applications of this section which can
be given effect without the invalid provision or application, and to
this end the provisions of this section are severable.

17510.4.  If the initial solicitation or sales solicitation is made
by radio, television, letter, telephone, or any other means not
involving direct personal contact with the person solicited,
including over the Internet, this solicitation shall clearly disclose
the information required by Section 17510.3. This disclosure
requirement shall not apply to any radio or television solicitation
of 60 seconds or less. If the gift is subsequently made or the sale
is subsequently consummated, the solicitation or sale for charitable
purposes card shall be mailed to or otherwise delivered to the donor,
or to the buyer with the item or items purchased.

17510.5.  (a) The financial records of a soliciting organization
shall be maintained on the basis of generally accepted accounting
principles as defined by the American Institute of Certified Public
Accountants, the Governmental Accounting Standards Board, or the
Financial Accounting Standards Board.
   (b) The disclosure requirement of paragraph (7) of subdivision (a)
of Section 17510.3 shall be based on the same accounting principles
used to maintain the soliciting organization's financial records.

17510.6.  The provisions of this article shall not apply to
solicitations, sales, offers, or attempts to sell within the
membership of a charitable organization or upon its regular occupied
premises, nor shall it apply to funds raised as authorized by Section
326.5 of the Penal Code.

17510.7.  Compliance with any city or county ordinance which
provides for disclosure of information relating to solicitations or
sales solicitations for charitable purposes substantially similar to
and no less than the disclosure requirements of this article shall be
deemed to satisfy the requirements of this article. The provisions
of this article are not intended to preempt any city or county
ordinance.

17510.8.  Notwithstanding any other provision of this article, there
exists a fiduciary relationship between a charity or any person
soliciting on behalf of a charity, and the person from whom a
charitable contribution is being solicited. The acceptance of
charitable contributions by a charity or any person soliciting on
behalf of a charity establishes a charitable trust and a duty on the
part of the charity and the person soliciting on behalf of the
charity to use those charitable contributions for the declared
charitable purposes for which they are sought. This section is
declarative of existing trust law principles.

17510.85.  Any individual, corporation, or other legal entity who
for compensation solicits funds or other property in this state for
charitable purposes shall disclose prior to an oral solicitation or
sales solicitation made by direct personal contact, radio,
television, telephone, or over the Internet, or at the same time as a
written solicitation or sales solicitation: (a) that the
solicitation or sales solicitation is being conducted by a commercial
fundraiser for charitable purposes, and (b) the name of the
commercial fundraiser for charitable purposes as registered with the
Attorney General pursuant to Section 12599 of the Government Code.

17510.87.  Any individual, corporation, or other legal entity who,
for compensation, solicits funds or other property in this state for
charitable purposes is prohibited from retaining more than 50 percent
of the net proceeds collected as a fee for fundraising services. For
purposes of this section only, a fee does not include a flat fee
agreed upon prior to the initiation of direct solicitation that is
associated with the development of a solicitation or marketing
campaign for charitable purposes.
   A violation of this section shall not be a crime. However, it is
subject to all applicable civil remedies. In addition, any person who
collects any fee in excess of the limits imposed by this section
shall be subject to a penalty in the amount of the excess fee, which
penalty may be collected in an action by any person authorized to
bring an enforcement action under Chapter 5 (commencing with Section
17200) and distributed as provided in that chapter.
   This section shall only apply to contracts entered into or renewed
on or after January 1, 1995.

17510.9.  (a) A charity engaged in any solicitation or sales
solicitation for charitable purposes, that collected more than 50
percent of its annual income and more than one million dollars
($1,000,000) in charitable contributions from donors in this state
during the previous calendar year, and that spent more than 25
percent of its annual income on "nonprogram activities," which is
defined as the sum of the expenditures specified in subparagraphs
(A), (B), (C), and (D) of paragraph (2) of subdivision (b), shall
annually prepare and provide to the Attorney General's Registry of
Charitable Trusts three copies of a one-page document that provides
the information required by subdivision (b). If the charity is
subject to Article 7 (commencing with Section 12580) of Chapter 6 of
Part 2 of Division 3 of Title 2 of the Government Code, the document
shall be submitted together with the charity's report required by
Section 12586 of the Government Code, and shall provide information
consistent with that provided to the registry pursuant to Article 7
(commencing with Section 12580) of Chapter 6 of Part 2 of Division 3
of Title 2 of the Government Code.
   (b) The contents of the document required pursuant to subdivision
(a) shall be established by the Attorney General in a manner
consistent with the procedures set forth in this subdivision and in
subdivisions (a) and (b) of Section 12586 of the Government Code, and
shall include, at a minimum, all of the following:
   (1) Total revenue and contributions received of the charity.
   (2) The dollar amount and the percentage of total revenue and
charitable contributions allocated to funding each of the following
administrative functions:
   (A) Total salaries of all persons employed by the charity.
   (B) Fundraising.
   (C) Travel expenses.
   (D) Overhead and other expenses related to managing and
administering the charity.
   (E) The salaries of the five highest compensated persons employed
by the charity.
   (3) The dollar amount and percentage of total revenue and
charitable contributions allocated to programs.
   (c) Each charity subject to this section shall make available for
distribution the document required pursuant to subdivision (a)
following a request made in person, by telephone, or by mail. Each
request shall be accompanied by a stamped, self-addressed envelope
provided by the requester.
   (d) The Attorney General shall make available for public review at
the Registry of Charitable Trusts in Sacramento and in the San
Francisco and Los Angeles offices of the Attorney General, the
documents provided by charities pursuant to subdivision (a), and
shall maintain these documents separately from other documents
provided by charities pursuant to Article 7 (commencing with Section
12580) of Chapter 6 of Part 2 of Division 3 of Title 2 of the
Government Code.

17510.95.  The Attorney General shall annually publish a report that
includes information provided to the Registry of Charitable Trusts
pursuant to Section 17510.9 for all charities reporting under that
section. The report shall be made available to public main libraries
in the state at no cost and to any person upon request and the
payment of a reasonable fee to cover the costs of publication and
distribution.