Section § 17510

Explanation

This law highlights concerns about people being tricked or misled when donating to charities in California. It recognizes that some fundraising activities claim to be for charity but give little to no money to the actual cause. To protect the public from such deceptive practices, the law aims to ensure that people know how much of their donation is truly going to charity. By doing so, it seeks to encourage honest fundraising and stop misleading methods, ensuring donations are used as intended for charitable purposes.

(a)CA Business & Professions Code § 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)CA Business & Professions Code § 17510(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.

Section § 17510.1

Explanation

This law says that a "sale" doesn't just mean when you pay money for something. It also includes when someone gives something as a gift but hopes or expects to get money in return for it.

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

Section § 17510.2

Explanation

This law explains what counts as asking for donations or selling things for charity. It includes any request, sale, or attempt to get money or property by mentioning charity or using a charity's name. This can include using the name of organizations like police or firefighters to encourage people to donate or buy something, unless it's clear that the money only benefits their active members directly. The law also covers any public announcement or publication made in connection with these activities. It applies to groups like nonprofits, community groups, and service organizations asking for donations or managing charitable assets.

(a)CA Business & Professions Code § 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)CA Business & Professions Code § 17510.2(a)(1) Any appeal is made for charitable purposes.
(2)CA Business & Professions Code § 17510.2(a)(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)CA Business & Professions Code § 17510.2(a)(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)CA Business & Professions Code § 17510.2(a)(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)CA Business & Professions Code § 17510.2(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)CA Business & Professions Code § 17510.2(b)(1) Any appeal is made for charitable purposes.
(2)CA Business & Professions Code § 17510.2(b)(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)CA Business & Professions Code § 17510.2(b)(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)CA Business & Professions Code § 17510.2(b)(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)CA Business & Professions Code § 17510.2(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)CA Business & Professions Code § 17510.2(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.

Section § 17510.25

Explanation

This law allows charities to collect donations from people driving by on public roads under specific conditions. Only public safety workers, like police or firefighters, can do the collecting, and they must work within their local area. The charity must apply to the local government at least 10 days before the event and provide details such as the date, time, location, and method of solicitation. They must also prove they have at least $1 million in liability insurance to cover any accidents that might happen during the collection. Local governments must approve these applications within five days but can set safety conditions. The law clarifies that having liability insurance is important to ensure public safety during these road collections, but it does not stop local governments from setting more rules if needed.

(a)CA Business & Professions Code § 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)CA Business & Professions Code § 17510.25(a)(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)CA Business & Professions Code § 17510.25(a)(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)CA Business & Professions Code § 17510.25(a)(2)(A) The date or dates and times of day when the solicitation is to occur.
(B)CA Business & Professions Code § 17510.25(a)(2)(B) The location or locations where the solicitation is to occur.
(C)CA Business & Professions Code § 17510.25(a)(2)(C) The manner and conditions under which the solicitation is to occur.
(D)CA Business & Professions Code § 17510.25(a)(2)(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)CA Business & Professions Code § 17510.25(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)CA Business & Professions Code § 17510.25(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)CA Business & Professions Code § 17510.25(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)CA Business & Professions Code § 17510.25(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)CA Business & Professions Code § 17510.25(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)CA Business & Professions Code § 17510.25(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.

Section § 17510.3

Explanation

Before asking for donations or selling things for charity, solicitors must show potential donors a 'Solicitation or Sale for Charitable Purposes Card' or similar printed information. This must include the charity's name and address, tax status, how the money will be used, and which part of donations may be tax-deductible. Special rules apply if the charity uses names implying a connection to law enforcement, firefighters, or veterans. Volunteers, especially minors, have fewer disclosure requirements. Failing to follow these rules can lead to penalties, but minor infractions don’t invalidate the entire law.

(a)CA Business & Professions Code § 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)CA Business & Professions Code § 17510.3(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)CA Business & Professions Code § 17510.3(2) If there is no organization or fund, the manner in which the money collected will be utilized for charitable purposes.
(3)CA Business & Professions Code § 17510.3(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)CA Business & Professions Code § 17510.3(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)CA Business & Professions Code § 17510.3(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)CA Business & Professions Code § 17510.3(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)CA Business & Professions Code § 17510.3(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)CA Business & Professions Code § 17510.3(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)CA Business & Professions Code § 17510.3(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)CA Business & Professions Code § 17510.3(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.

Section § 17510.4

Explanation

This section states that if someone tries to solicit donations or make a sales offer using methods like radio, TV, letters, phone, or the Internet, they must disclose certain information as specified by another section (Section 17510.3). However, this rule doesn't apply to short radio or TV solicitations lasting 60 seconds or less. If a donation is made or a sale occurs, the relevant information card must be sent to the donor or buyer with their purchase.

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.

Section § 17510.5

Explanation

This law section requires that organizations that raise money must keep their financial records according to specific accounting standards set by professional accounting boards. Additionally, when these organizations disclose financial information, they need to use the same accounting principles they used for their financial records.

(a)CA Business & Professions Code § 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)CA Business & Professions Code § 17510.5(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.

Section § 17510.6

Explanation

This law states that certain rules don't apply when a charity is asking for donations or selling something if it's done among its own members or on its usual property. It also doesn't apply to money raised through bingo games as allowed by another law.

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.

Section § 17510.7

Explanation

This law says that if a city or county has rules about sharing information for charitable solicitations that are similar or better than the state's, following those local rules is enough. It also clarifies that the state rules don’t override the local ones.

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.

Section § 17510.8

Explanation

This law says that when a charity or someone asking for donations on its behalf collects money, they have a trust-like relationship with the donor. This means they must use the donations as promised for specific charitable goals. This rule is in line with existing trust laws.

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.

Section § 17510.85

Explanation

If someone is being paid to ask for donations or sell something for a charity in California, they must tell you before you donate or buy: (1) that they are a commercial fundraiser specifically for charity, and (2) their registered name with the Attorney General. If it's written or electronic, this info must be easy to read and in at least 12-point font.

(a)CA Business & Professions Code § 17510.85(a) An 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:
(1)CA Business & Professions Code § 17510.85(a)(1) That the solicitation or sales solicitation is being conducted by a commercial fundraiser for charitable purposes.
(2)CA Business & Professions Code § 17510.85(a)(2) The name of the commercial fundraiser for charitable purposes as registered with the Attorney General pursuant to Section 12599 of the Government Code.
(b)CA Business & Professions Code § 17510.85(b) The disclosures required pursuant to this section, if printed or if presented electronically, shall be in at least 12-point type, and shall be clear and conspicuous, as defined in Section 17601.

Section § 17510.87

Explanation

If someone is paid to raise funds for a charity in California, they cannot keep more than 50% of the money collected as their fee. The rule does not apply to flat fees agreed upon before starting a fundraising campaign. Breaking this rule isn’t a crime, but civil penalties can apply. If someone takes more than allowed, they might have to pay back the extra to those who enforce consumer protection laws. This only affects contracts made or renewed after January 1, 1995.

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.

Section § 17510.9

Explanation

This law requires certain charities in California to prepare a brief report if they get over $1 million in donations and spend more than 25% of their income on non-program expenses like salaries and fundraising. The report, which must be given to the Attorney General, includes details on the charity's revenue and where the money goes, such as staff salaries and fundraising expenses. Requests for this document can be made by anyone and the Attorney General will keep these records publicly accessible at specific locations.

(a)CA Business & Professions Code § 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 Charities and Fundraisers 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)CA Business & Professions Code § 17510.9(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)CA Business & Professions Code § 17510.9(b)(1) Total revenue and contributions received of the charity.
(2)CA Business & Professions Code § 17510.9(b)(2) The dollar amount and the percentage of total revenue and charitable contributions allocated to funding each of the following administrative functions:
(A)CA Business & Professions Code § 17510.9(b)(2)(A) Total salaries of all persons employed by the charity.
(B)CA Business & Professions Code § 17510.9(b)(2)(B) Fundraising.
(C)CA Business & Professions Code § 17510.9(b)(2)(C) Travel expenses.
(D)CA Business & Professions Code § 17510.9(b)(2)(D) Overhead and other expenses related to managing and administering the charity.
(E)CA Business & Professions Code § 17510.9(b)(2)(E) The salaries of the five highest compensated persons employed by the charity.
(3)CA Business & Professions Code § 17510.9(b)(3) The dollar amount and percentage of total revenue and charitable contributions allocated to programs.
(c)CA Business & Professions Code § 17510.9(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)CA Business & Professions Code § 17510.9(d) The Attorney General shall make available for public review at the Registry of Charities and Fundraisers 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.

Section § 17510.95

Explanation

This law requires the Attorney General to create a yearly report that includes details from the Registry of Charities and Fundraisers. This report is shared for free with public main libraries in California and can also be requested by anyone who pays a small fee to cover the publication and mailing costs.

The Attorney General shall annually publish a report that includes information provided to the Registry of Charities and Fundraisers 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.