House committee adopts bill easing rules for small business charity promotions

A House committee on Tuesday heard testimony from the Secretary of State's office and nonprofit representatives and voted to adopt House Bill 4662, a measure that changes how charities and commercial co‑ventures are regulated in South Carolina.

Shannon Wiley, general counsel and public information director for the Secretary of State's office, told the committee that the Solicitation of Charitable Funds Act requires registrations and financial reports so donors can check how organizations use money and that filings are posted online and accessible through a free GiveSmart app. Wiley described H4662 as a technical bill that clarifies exemption categories and eases burdens on small fundraisers while maintaining donor protections. “Basing [exemptions] on gross revenue … creates essentially a bright line,” Wiley said, arguing it will make it easier for charities and staff to determine who must register.

The bill converts two existing exemption categories from being based on an organization’s “intent to solicit” to being based on gross revenue and raises some thresholds; Wiley cited examples in testimony moving an intent threshold of $20,000 to a gross‑revenue threshold (one example noted a $25,000 figure) and raising another exemption from $7,500 to $10,000. H4662 also embeds rules for commercial co‑ventures — for‑profit businesses that donate a portion of sales — to require registration, written contracts and joint financial reports for larger campaigns while exempting those that raise less than $10,000 in a single solicitation campaign from those filing requirements. Wiley said the office can still investigate complaints of fraud or malfeasance and that enforcement begins with a certified notice of violation; recipients have 15 days to comply before fines begin to accrue.

Jordan Amacker, director of advocacy at Lowcountry Local First, urged passage on behalf of small independent businesses, saying the cost of compliance under current law “exceeds the donation itself” for many local operators and that small businesses donate disproportionately more locally than national competitors. “If a business plans to raise less than $10,000, they’re exempt from that heavy administrative registration but the bill still requires the clear disclosures to the consumer at the point of sale,” Amacker said.

G.P. McCleer of TogetherSC, the state’s nonprofit association, told the committee the bill would reduce red tape that discourages local fundraising events and provide clearer guidance for nonprofits and the Secretary of State’s staff. McCleer noted committee practice in the bill that allows a short cure period if a campaign unintentionally exceeds the threshold: “If you end up raising over $10,000, you have 30 days to comply,” McCleer said.

Committee members asked technical questions about which organizations must file, whether public schools must complete any form, and how raffles are regulated. Wiley said public school districts and other FOIA‑subject public entities are treated as exempt categories for registration but still submit a short annual application that puts the public on notice and allows complaint handling. She said raffles are governed under a different code section (30‑33‑57‑100) and are not changed by H4662.

After testimony and questions, the committee chair called for a motion to adopt House Bill 4662; members raised hands and the chair said the motion passed unanimously and the measure will move to the full committee for further consideration.

The transcript of the hearing contains a few inconsistent references to bill numbers during testimony; the committee record introduced the measure as House Bill 4662 and witnesses occasionally referenced companion or related Senate measures. The committee did not record individual roll‑call votes in the hearing transcript; the chair announced the adoption as unanimous.

The next procedural step is consideration by the full committee.