CS for CS for SB 638 - Charities Summary

• Excludes charitable organizations disqualified by the Department of Agriculture and Consumer Services from receiving sales tax exemptions unless they comply with charity registration and financial reporting requirements.

• Requires charitable organizations and sponsors receiving at least $500,000 in annual contributions to have financial statements reviewed or audited by independent certified public accountants, with audits required for organizations receiving $1 million or more.

• Creates individual solicitor licensing requirements for officers, directors, and employees of professional solicitors who conduct telephonic solicitations involving personal financial information, including fingerprint background checks.

• Establishes new disclosure requirements for collection receptacles and online solicitations, requires quarterly financial reporting for disaster relief solicitations exceeding $100,000, and creates conflict of interest transaction policies for charitable boards.

• Increases administrative penalties for violations of solicitation laws from $1,000 to $5,000 per violation, and up to $10,000 for violations involving fraud or deception; allows immediate suspension of registrations when individuals are criminally charged with fraud-related offenses.