Alhambra Municipal Code Ch. 5.28 Charitable Solicitations

For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

CHARITABLE. Includes the words “patriotic,” “philanthropic,” “social service,” “welfare,” “benevolent,” “educational,” “civic” or “fraternal” either actual or purported.

COMMITTEE. The Solicitations Advisory Committee consisting of the City Manager, Director of Finance and Chief of Police, created by the City Council to direct and carry out the purpose of this chapter.

CONTRIBUTION. Includes the words “alms,” “food,” “clothing,” “money,” “subscription,” “property,” or “donations” under the guise of a loan of money or property.

PERSON. Any individual, firm, copartnership, corporation, company, association, or joint-stock organization, church, religious sect, religious denomination, society, organization or league, and includes any trustee, receiver, assignee, agent, or other similar representative thereof.

SOLICIT and SOLICITATION. The request directly or indirectly of money, pledges, credit, property, financial assistance, or other thing of value on the plea or representation that such money, pledge, credit, property, financial assistance or other thing of value will be used for a charitable purpose as that purpose is defined herein. These words shall also mean and include the following methods of securing money, credit, pledge, property, financial assistance or other thing of value on the plea of representation that it will be used for a charitable purpose as herein defined;

(1) Any oral or written request;

(2) The distribution, circulation, mailing, posting or publishing of any handbill, written advertisement or publication;

(3) The making of any announcement to the press, over the radio, by telephone or telegraph concerning an appeal, assemblage, athletic or sports event, bazaar, benefit, campaign, contest, dance, drive, entertainment, exhibition, exposition, party, performance, picnic, sale or social gathering which the public is requested to patronize or to which the public is requested to make a contribution for any charitable purpose connected therewith;

(4) The sale of, offer or attempt to sell, any advertisement, advertising space, book, card, chance, coupon, device, magazine, membership, merchandise, subscription, ticket or other thing in connection with which any appeal is made for any charitable purpose, or where the name of any charit-able or religious person is used or referred to in any such appeal as an inducement or reason for making such sale, or when or where in connection with any such sale, and statement is made that the whole or any part of the proceeds of any such sale will go or be donated to any charitable purpose.

A SOLICITATION shall be deemed completed when made, whether or not the person making the same receives any contribution or makes any sale referred to herein.

('86 Code, § 5.28.010) (Ord. 2774, passed - - ; Am. Ord. 3673, passed - - )

A Solicitations Advisory Committee, composed of the City Manager, Director of Finance and Chief of Police, is hereby created to serve without additional compensation. It shall be the duty of the Committee to investigate each application for a permit required by the provisions of this chapter, and after such investigation, to either approve or deny each such application. The Committee shall have the power to summon witnesses, take testimony, direct investigations and conduct hearings, and to do and perform all other acts which may be necessary or proper within the scope of its duties and functions. The Committee shall maintain each application on file, together with its recommendation thereon, all of which shall be subject to public inspection at any reasonable time.

('86 Code, § 5.28.020) (Ord. 2774, passed - - ; Am. Ord. 3673, passed - - )

(A) No person shall within the city solicit for any charity or charitable purpose without a permit from the Director of Finance authorizing such solicitation.

(B) The provisions of this section shall not apply to any person organized and operated wholly or partly for religious or charitable purposes and not operated for the pecuniary profit of any person, if the solicitation by such person is conducted only among the members thereof by other members or officers thereof, voluntarily and without remuneration for making such solicitation, or if the solicitation is in the form of collections or contributions taken or made at the regular assemblies or services of any such person.

('86 Code, § 5.28.030) (Ord. 2774, passed - - ; Am. Ord. 3673, passed - - ) Penalty, see § 5.28.200

(A) An application for a permit to solicit as required by § 5.28.030 of this code shall be made to the Director of Finance upon forms prescribed by the Committee. Such application shall be sworn to or affirmed and filed with the Director of Finance at least 15 days prior to the time at which the permit applied for is to become effective. The Director of Finance may, for good cause shown, allow the filing of an application less than 15 days prior to the effective date of such permit. The application herein required shall contain the following information, or, in lieu thereof, a statement satisfactory to the Director of Finance of the reason or reasons why such information or any item thereof is not furnished;

(1) A copy of the documentation from the State of California Franchise Tax Board or the Federal Internal Revenue Service certifying nonprofit status.

(2) A financial statement for the last preceding two fiscal or calendar years of any funds collected for charitable purposes by the applicant, giving the amount of money so raised, the cost of raising it and the final distribution thereof.

(3) A full statement of the general character and extent of the charitable work being done or to be done by the applicant showing how much thereof is being done or is to be done within the city.

(4) A statement that the actual cost of the solicitation will not exceed 25% of the total amount to be raised, or, if the cost of solicitation is expected to exceed 25%, a statement of what the maximum amount is expected to be, together with a statement of any special facts tending to show that there are peculiar reasons which in the particular case make a cost higher than 25% reasonable.

(5) A statement to the effect that if a permit is granted, it will not be used or represented in any way as an endorsement of the solicitation or person by the city or by any department or officer thereof.

(6) A statement to the effect that if a permit is granted, no person under the age of 16 years unaccompanied by an adult bearing a permit issued hereunder will be permitted to solicit money.

(7) The names and addresses of applicant's principal officers and management.

(8) The name and address of the person or persons who will be in charge of conducting the solicitation and the names of all promoters connected or to be connected with the proposed solicitation.

(9) The period of time when such solicitation will be made, giving the preferred dates for the beginning and ending of such solicitation.

(10) The amount of any wages, fees, com-missions, expenses or emoluments to be expended or paid to any person in connection with such solicita-tions and the names and addresses of all such persons.

(11) A list of other cities or counties where similar permits have been applied for in the past two years.

(12) Such other information as may be required by the Director of Finance or the committee in order for them to determine the kind and character of the proposed solicitation, and whether such solicitation is in the interests of and not inimical to the public welfare.

(B) If, while any application is pending, or during the term of any permit granted thereon, there is any change in fact, policy, or method that would alter the information given in the application, the applicant shall notify the Director of Finance in writing thereof within 24 hours after such change.

('86 Code, § 5.28.040) (Ord. 2774, passed - - ; Am. Ord. 3673, passed - - ; Am. Ord. 3962, passed - - )

Applicant shall publish at its sole expense and at no cost to the city in a newspaper of general circula-tion within the city a notice of its intent to solicit, stating the area of the city to be solicited and the dates during which solicitations are to be conducted.

('86 Code, § 5.28.045) (Ord. 3962, passed - - )

The Committee shall examine all applications filed under § 5.28.040 and shall make, or cause to be made, such further investigation of the application and the applicant as the Committee shall deem necessary in order for them to perform their duties under this chapter. Upon request by the Committee, the appli-cant shall make available for inspection by the Committee, or by any person designated in writing by the Committee as their representative for such purpose, all of the applicant's books, records and papers at any reasonable time before the application is granted, during the time a permit is in effect, or within one year after a permit has expired.

(Ord. 2774, passed - - ; Am. Ord. 3673, passed - - )

(A) The Committee shall approve the applica-tion and authorize the Director of Finance to issue the necessary permit therefor if the Committee finds that;

(1) All of the statements made in the application are true.

(2) The applicant, or its managing officers and agents if the applicant is not an individual person, are of good character and reputation for honesty and integrity.

(3) The applicant has not engaged in any fraudulent transaction or enterprise.

(4) The solicitation will not be a fraud on the public.

(5) The solicitation is prompted solely by a desire to finance the charitable cause described in the application and will not be conducted for private profit.

(6) The control and supervision of the solicitation will be under responsible and reliable persons.

(7) The cost of raising the funds will be reasonable. Any such cost in excess of 25% of the amount collected shall be considered to be unreason-able unless special facts are presented showing to the satisfaction of the Committee that peculiar reasons make a cost higher than 25% reasonable in the particular case.

(8) The kind, character and method of the proposed solicitation, the time when it will take place, and its duration are such that the solicitation will be in the interest of and not inimical to the safety, convenience or welfare of the inhabitants of the city.

(B) In addition, the Committee may, as a condition to granting such permit, require the applicant to file a bond with the Director of Finance in a sum of not to exceed $2,000, in a form to be approved by the City Attorney, conditioned so that if applicant should fail to devote, pay or use the entire proceeds, or percentage thereof, as specified in the application, derived from the solicitation to the person for, or on whose behalf or benefit such solicitation was carried on, as indicated on the application, then the surety will pay to such person the amount of such bond.

('86 Code, § 5.28.070) (Ord. 2774, passed - - ; Am. Ord. 3673, passed - - )

(A) Notice of denial. If the application is denied, the Committee shall so notify the applicant by certified mail, return receipt requested, at the address given on the application, stating the reasons therefor.

(B) Request for hearing. Within five days after receiving the above notice of denial, any applicant may file a written request with the Director of Finance for a public hearing on the application before the Committee, together with written exceptions to the reasons upon which the Committee based its denial of the application.

(C) Notice of hearing. Upon the filing of such a request, the Committee shall fix a time and place for the hearing and shall notify the applicant thereof. The hearing shall be held within five days after the request is filed.

(D) Hearing. At the hearing the applicant may present evidence in support of his application and exceptions. Any interested person may, in the discretion of the Committee, be allowed to participate in the hearing and present evidence in opposition to the application and exceptions.

(E) Decision. Within ten days after the conclusion of the hearing, the Committee shall render a written report either granting or denying the application for a permit. The report shall state the facts upon which the decision is based and the rulings upon any exceptions filed to the original reasons for denying the application.

(F) Appeal. Any such decision of the Committee denying the application for a permit may be appealed to the City Council pursuant to the provisions set forth in § 5.82.050 of this code.

('86 Code, § 5.28.080) (Ord. 2774, passed - - ; Am. Ord. 3673, passed - - )

(A) Form. The permits required by the provisions of this chapter shall bear the name and address of the person to whom the permit is issued, the number of the permit, the date issued, the dates within which the permittee may solicit and a statement that the permit does not constitute an endorsement by the city or by any of its departments, officers or employees of the purpose of or of the person conducting the solicitation. All permits must be signed by the Director of Finance.

(B) Term. Each permit and each renewal permit issued pursuant to this chapter shall expire on December 31 next following the date of its issuance.

('86 Code, § 5.28.090) (Ord. 2774, passed - - ; Am. Ord. 3673, passed - - ; Ord. 3962, passed - - )

Any person holding a valid permit under § 5.28.070 of this code may authorize any number of individual persons to conduct and carry on the solicitation under such permit; however, the Committee may in its discretion limit the number of individuals who may be so authorized.

(A) Credentials required. Such persons shall furnish proper credentials to their agents and solicitors for such solicitation. Such credentials shall include the name of the permit holder, the date, a statement describing the permittee's charitable activity, a description of the purpose of the solicitation, the signature of the permittee or of the permittee's chief executive officer, the name, address, age, sex, and signature of the solicitor to whom such credentials are issued, and the specific period of time during which such solicitor is authorized to solicit on behalf of the permittee. A facsimile copy of the valid permit may be used as the credentials provided such copy contains the informa-tion required hereunder.

(B) Credentials, filing. A copy of such credentials shall be filed with the Committee at the time the application for a permit is filed and shall be approved by the Committee as conforming to the requirements of this section before such permit is issued.

(C) Credentials, carrying and display. No person shall solicit under any such permit without the credentials required by this section and/or a facsimile copy of such permit in his possession. Such creden-tials and facsimile copy of the permit shall be shown to all persons solicited and, upon request, to any police officer of the city.

(D) Permit required. No agent or solicitor shall solicit contributions for any charitable purpose for any person in the city unless such person has been granted a permit pursuant to the provisions of this chapter.

('86 Code, § 5.28.100) (Ord. 2774, passed - - ; Am. Ord. 3673, passed - - ) Penalty, see § 5.28.200

It shall be unlawful for any person to solicit before the hour of 9:00 a.m. of any day, or after the hour of 9:00 p.m. of any day.

('86 Code, § 5.28.110) (Ord. 2774, passed - - ; Am. Ord. 3673, passed - - ) Penalty, see § 5.28.200

(A) Any person receiving money in the amount of $1 or more from any contributor under a solicita-tion made pursuant to a permit granted under this chapter shall give to the contributor a written receipt signed by the solicitor showing plainly the name and permit number of the person under whose permit this solicitation is conducted, the date, and the amount received.

(B) Except, however, that the provisions of this section shall not apply to:

(1) Contributions collected by means of a closed receptacle used with the prior written consent of the Committee.

(2) Contributions in connection with special events where the contributor is given a printed, press-numbered coupon, ticket or similar printed evidence of the donation on which appears the name of the permit holder, the amount of the contribution evidenced thereby, and the date and a description of the special event to which it relates.

(3) Contributions involving the sale of merchandise, where there is affixed on the merchan-dise, or on the container thereof, the name of the permit holder and the price paid for the merchandise.

(4) Contributions in the form of personal checks mailed to the permit holder.

('86 Code, § 5.28.120) (Ord. 2774, passed - - ; Am. Ord. 3673, passed - - ) Penalty, see § 5.28.200

Any permit issued under this chapter shall be nontransferable and shall be returned to the Director of Finance within seven calendar days of its date of expiration.

('86 Code, § 5.28.130) (Ord. 2774, passed - - ; Am. Ord. 3673, passed - - ) Penalty, see § 5.28.200

No person shall solicit any contributions for any charitable purpose without maintaining a system of accounting whereby all donations and all disburse-ments are entered upon the books or records of such person's treasurer or other financial officer.

('86 Code, § 5.28.140) (Ord. 2774, passed - - ; Am. Ord. 3673, passed - - ) Penalty, see § 5.28.200

It shall be the duty of all persons issued permits pursuant to the provisions of this chapter to furnish the Committee within 30 days after the solicitation has been completed, a detailed report and financial statement showing the amount raised by the solicitation, the amount expended in collecting such funds, including a detailed report of the wages, fees, commissions, and expenses paid to any person in connection with such solicitation, and the disposition of the balance of the funds collected by the solicita-tion. Such report shall be available for public inspection at the office of the Director of Finance at any reasonable time; provided, however, the Committee may extend the time for the filing of such report for an additional period of 30 days upon proof that the filing of the report within the time specified will work unnecessary hardship on the permit holder. The permit holder shall make available to the Committee, or to any person designated in writing by the Committee as its representative for such purpose, all books, records and papers whereby the accuracy of the report may be checked.

('86 Code, § 5.28.150) (Ord. 2774, passed - - ; Am. Ord. 3673, passed - - )

The Committee is hereby authorized to investi-gate the affairs of any person soliciting for charitable purposes under a permit issued pursuant to the pro-visions of this chapter and the affairs of any person exempted from the requirements of a permit pursuant to the provisions of § 5.28.030 of this code. The Committee shall make public its written findings in order that the public may be fully informed as to the affairs of any of such persons. Such persons shall make available to the Committee or to any representa-tive designated by the Committee in writing for such specific purposes, all books, records or other information reasonably necessary to enable the committee to fully and fairly inform the public of all facts necessary to a full understanding by the public of the work and methods of operation of such persons; provided, however, five days before the public release of any such findings, the Committee shall first serve a copy of such findings upon the person investigated, and, at the time of the release of its findings, the Committee shall release a copy of any written statement such person may file with the committee in explanation, denial or confirmation of the findings released.

('86 Code, § 5.28.160) (Ord. 2774, passed - - ; Am. Ord. 3673, passed - - )

No person shall directly or indirectly solicit for any purpose by misrepresentation of his name, occupation, financial condition, social condition or residence, and no person shall make or perpetrate any misstatement, deception or fraud in connection with any solicitation for any purpose in the city or in any application or report filed under this chapter.

('86 Code, § 5.28.170) (Ord. 2774, passed - - ; Am. Ord. 3673, passed - - ) Penalty, see § 5.28.200

Any person aggrieved by any ruling of the Committee or by any officer endorsing any of the provisions of this chapter may appeal such ruling to the City Council pursuant to the provisions of § 5.82.050 of this code.

('86 Code, § 5.28.180) (Ord. 2774, passed - - ; Am. Ord. 3673, passed - - )

It shall be the duty of the Director of Finance to enforce each and all of the provisions of this chapter, and the Chief of Police shall render such assistance in the enforcement hereof as may from time to time be required by the Director of Finance, the Committee or the City Council.

('86 Code, § 5.28.190) (Ord. 3673, passed - - )

(A) Any person who violates any provision of this chapter is guilty of a misdemeanor and shall be punished as provided in § 1.12.010 of this code.

(B) Each separate act of soliciting for any charitable purposes without a permit shall constitute a separate offense.

('86 Code, § 5.28.200) (Ord. 3673, passed - - )