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Volunteer Legal Handbook
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6. Registration before charitable solicitation.
Charitable organizations and persons who are paid to solicit money or property for charitable organizations must now register and meet some other statutory requirements before beginning fund-raising. While this subject was discussed briefly as a part of government regulation, because it is an issue of nonprofit law as well, there's an extended discussion here.
a) Mandatory registration by organizations before solicitationUnder AS 45.68.010-900, since September 2, 1996, charitable organizations may not solicit contributions of money or property unless they first register with the Alaska Department of Law.
(1) Registration formThe Alaska Department of Law has issued a detailed, four page Charitable Organization Registration Form. This form must be filed by every fund-raising organization annually before solicitation of contributions for the ensuing fiscal year. AS 45.68.010(a). A sample chartiable registration form is available here and in PDF format.
(2) Reports of changes
If any of the information described in the Charitable Organization Registration Form materially changes during the year, you are required to advise the Alaska Department of Law. AS 45.68.010(e).
(3) Public Records
The Charitable Organization Registration Form as filed, with any additions or changes, is a public record available for inspection and copying under AS 09.25.110. AS 45.68.060.
b) Exemptions from the requirement of registration
Certain kinds of fund-raising organizations are exempted from the requirement of registration. Those include:
(1) ChurchesA church or religious organization exempt from filing a Federal annual information return under 26 USC §6033(a)(2)(A).
(2) Candidate for public office
A candidate for public office who is required to file financial information with the Alaska Public Offices Commission or the Federal Election Commission.
(3) Small fund-raising activities
A charitable organization that does not intend to raise or receive contributions, excluding government grants, in excess of $5,000 during its fiscal year or that does not intend to receive monies from more than 10 persons during its fiscal year, all of the organization's functions are performed by persons who are not paid for their services and if no monies go to salaries. If despite your intentions one or the other contingency occurs, you must register within 30 days.
(4) Registered gaming
A person or a municipality with a registered gaming permit under AS 05.15.100.
c) Retention of records
Whether a charitable organization is required to register or not, it is required to maintain its records for five years in a form that permits the Alaska Department of Law to make a complete audit of solicitations by the charitable organization.
d) Registration of "paid solicitors"
We're not talking about lawyers here. A "paid solicitor" is a person who solicits contributions of money or property for compensation. AS 45.68.010(b). A paid solicitor is required to file a registration statement and a surety bond for $10,000 with the Alaska Department of Law. AS 45.68.010(c).
(1) Written contractThe contract between a paid solicitor and a charitable organization must be in writing, in a statutorily prescribed form, and filed with the Alaska Department of Law. AS 45.68.020.
(2) Mandatory disclosures
There are statutorily mandated disclosures that must be made by the paid solicitor to the prospective donor. There are a total of eight specific disclosure requirements and, without setting all of them out, let's just say that they will get in the way of an effective pitch. AS 45.68.030.
(3) Written confirmation
The paid solicitor who makes a solicitation by mail, radio or television is required to mail written confirmation of the pledge to the donor within 5 days. The confirmation must contain the disclosures mandated by law. Written confirmation is not required for in-person solicitations. AS 45.68.040.
(4) Exemptions
There are exemptions for financial advisors and, more importantly, there is an exemption for a "bona fide salaried officer, employee or volunteer of a charitable organization." AS 45.68.900(4)(A) and (B)
How can a volunteer ever be a "paid solicitor"?
e) Effect of violations
(1) Criminal sanctionsA violation of the registration requirement is a Class A misdemeanor. That's a pretty serious crime, punishable by a fine of up to $5,000 and a sentence of up to one year in jail. AS 45.68.100.
(2) Civil remedies
There is a right of private enforcement for a violation of these laws. Either another charitable organization or an unhappy donor can bring an action for damages and actual costs and attorneys' fees. AS 45.68.090.
(3) Consumer protection statutes
A violation is also probably a violation of the consumer protection laws, AS 45.50.471-.561.
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