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Committee raises registration thresholds and streamlines filings for small fundraisers
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Summary
The committee reported favorably a bill that raises the registration threshold for nonprofits, adjusts year definition to fiscal year, raises commercial co‑venture thresholds, and requires the legal name and purpose of a fund to be disclosed at initial solicitation; the Secretary of State helped draft the bill and local nonprofits supported it.
The committee considered a bill to amend the Solicitation of Charitable Funds Act and reported it favorably.
Staff described changes to raise the threshold for when a tax‑exempt charitable organization must register with the Secretary of State from $20,000 to $25,000 and to change the defined reporting year from calendar year to fiscal year. The bill also added a requirement that organizations register within 30 days after gross revenue exceeds the threshold and clarified that organizations raising less than $10,000 in gross revenue are not required to register. For commercial co‑ventures (for‑profit businesses that donate a portion of sales), registration and reporting would be required only if a single fundraising campaign raises over $10,000.
The bill would require at the time of solicitation that the legal name and purpose of the fund be disclosed to donors (the requirement currently applies only to professional solicitors). The statute was also amended to state explicitly that Secretary of State registration does not constitute state endorsement or approval. Staff said the Secretary of State’s office assisted in drafting the legislation and local groups including Local First and Together SC testified in support. Senator Sutton said the changes are meant to reduce paperwork for small, local fundraisers such as a neighborhood ice‑cream shop raising modest sums for a PTA. The committee moved, seconded and the bill was reported out favorably.
