Senate approves substitute to Charitable Solicitation Act to tighten consumer protections

The Utah Senate on Jan. 27 approved a substitute to the Charitable Solicitation Act that gives the Division of Consumer Protection broader enforcement authority and tightens registration and reporting requirements for professional fundraisers.

Sponsor Senator Baird, presenting the substitute on the floor, said the measure reflects more than a year of work with charitable groups and consumer officials and is intended to curb charitable fraud. "The changes that we're making to this act will help us in the state of Utah to have greater enforcement powers and to help us in dealing with the charitable frauds that have been going on in our community," she said.

The substitute requires registration and bonding for certain paid solicitors and creates a notification requirement for "exempt" campaigns that collect proceeds in excess of $1,000 for the relief of a named individual. Senators pressed for clarity on how that threshold would affect ad-hoc fundraisers for medical needs. Senator Black urged caution, saying many good-faith community fundraisers raise substantial sums — "I know of a number of occasions where we have had people solicit...to raise over $50,000" to pay for life-saving medical care — and expressed concern that well-meaning citizens might unintentionally run afoul of the statute.

Senator Baird noted the bill includes a defense: if a violator acted in good faith without intent to harm, the director or a court may excuse fines or penalties, and she said sponsors would consider a more specific amendment on that point on third reading. The body adopted a clarifying amendment to cover school-based clubs and organizations authorized by their schools — language supporters said ensures student groups authorized by schools are not swept into registration requirements.

Supporters said the statute is narrowly aimed at professional fundraisers and operators engaged in deceptive practices; exemptions were listed for political parties, bona fide 501(c)(3) organizations, religious organizations, education foundations, media outlets and typical volunteer-run school clubs. Senator Baird said the bill also authorizes the division to conduct public education about legitimate charitable giving.

The Senate recorded a roll call showing 27 aye votes, no nays and two absent; the substitute passed and will be transmitted to the House for further consideration. Several senators declared conflicts of interest on the floor (service on nonprofit boards), as required by chamber rules before final votes.

The sponsor and several members said they plan to refine procedural language related to fiscal notes and the good-faith defense in subsequent consideration; those clarifications were discussed but not all were settled on the floor before passage.

What happens next: The bill will be sent to the House for consideration, and sponsors indicated they would bring a targeted amendment on the good-faith notification provision if needed on third reading or in conference.