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§ 3.15 DISCLOSURE STATEMENTS AND LEGENDS

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Some states' charitable solicitation laws require a charitable organization engaged in fundraising in the jurisdiction to, in furtherance of a consumer protection objective, disclose the availability of certain information to prospective contributors.

For example, in several states, a prospective donor must be given a disclosure statement, which includes the name of the charitable organization, the address and telephone number where a request for a copy of the organization's financial statement should be directed, and a statement that relevant documents and information filed under the state's law are available from the state's regulatory office.

Some of these state laws require a legend that must be utilized in a charitable solicitation. As an illustration, one of these laws requires the following on all written solicitations and on written confirmations, receipts, or reminders subsequent to an oral solicitation:

A copy of the official registration and financial information may be obtained from the Pennsylvania Department of State by calling toll-free, within Pennsylvania, 1 (800) 732-0999. Registration does not imply endorsement.

One state requires charitable organizations to print their state registration number on solicitation materials.

These requirements impose burdens on charitable organizations that solicit contributions on a multistate basis. One organization devised an all-purpose legend that reads as follows:

You may obtain a copy of ______'s [the organization's name] financial report by writing to it at ______ [organization's address]. For your information, ______ registers with agencies in many states. Some of them will supply you with the financial and registration information they have on file.

Residents of the following states may request information from the offices indicated (the toll-free numbers are for use only within the respective states): Florida—Div. of Consumer Services, Charitable Solicitations, The Capitol, Tallahassee, FL 32339; Maryland—Office of the Secretary of State, Statehouse, Annapolis, MD 21401, 1-800-825-4510; New York—Office of Charities Registration, 162 Washington St., Albany, NY 12231; Pennsylvania—Department of State, Bureau of Charitable Organizations, Harrisburg, PA 17120, 1-800-732-0999; Virginia—Division of Consumer Affairs, P.O. Box 1163, Richmond, VA 23209, 1-800-552-9963; Washington—Office of the Secretary of State, Charitable Solicitation Division, Olympia, WA 98504, 1-800-332-4483; West Virginia—Secretary of State, State Capitol, Charleston, WV 25305. Registration with a state agency does not imply the state's endorsement. MICS _____.72

The Law of Fundraising

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