Ceres Municipal Code Ch. 24 Charitable Solicitations

The City Council finds:

A. That numerous persons have been and are soliciting funds and property in the City on the representation that such funds are to be used for charitable purposes when in truth and in fact such funds and property are being used either wholly or in a large part for the private profit of individuals making or promoting such solicitations; that a number of fraudulent and misleading representations are employed in many solicitations; that deliberate imitations of the names, slogans, and familiar devices of great and worthy charities are fraudulently imposed upon the public; that, as the result of pernicious activities, honest and needed charities are suffering from a suspicion engendered by these practices and that residents in this City have in many cases been defrauded and imposed upon for lack of adequate protection.

B. That access to information concerning persons making charitable solicitations, and to information which fully discloses the uses for which contributed funds are proposed to be used or have been used by persons making charitable solicitations will provide a means for residents of the City to protect themselves from being misled and from making contributions to unworthy persons; that there is no good or compelling reason why persons soliciting charitable contributions should not fully and fairly disclose the convictions for fraud or dishonesty of persons making charitable solicitations, the method of conducting charitable solicitations, the use of funds obtained and related matters; that such information concerning persons making charitable solicitations, their activities and their purposes, should be obtained by the coordinator and be made freely available to any interested person; and that, to promote the purposes of this section, the coordinator should publicize the availability of such information as well as publicizing the general nature and extent of charitable solicitation activity in the City.

C. That the public safety, peace, comfort, and convenience demands the exercise of the police power of this City to prevent fraudulent solicitations and to promote legitimate solicitations for charitable purposes.

(Ord. No. 2020-1057, § 1, 3-23-2020)

Whenever used in this chapter unless a different meaning clearly appears from the context:

Campaign is a series of planned actions for the purpose of obtaining charitable contributions and includes planning and conducting a sale or special event in which goods, services, or other thing of value is offered in return for a contribution.

Charitable contribution is the transfer or giving of anything of value intended by the donor to be a gift to a charitable organization or for a charitable purpose and includes a gift under the guise of a loan and any payment in excess of the "direct benefit cost" of an item received in return.

Charitable solicitation is any request made directly or indirectly for money, credit, property, financial assistance, or other thing of value on the plea, representation, or implication that the requested contribution will be used for patriotic, benevolent, educational, civic, fraternal, or other philanthropic purposes. It does not mean an appeal for contributions if the appeal:

A. Is confined and directed exclusively to the membership of an organization which is the recipient of the contributions; or

B. Is for the relief of an individual specified by name at the time of solicitation where the solicitor represents that the entire amount collected, without any deductions whatever, shall be turned over to the name beneficiary; or

C. Is made for a contribution to be used for the direct aid or support of a church or religion, or for a political party or organization; however, a request by a religious or political organization for a contribution to be used for charitable purpose is a "charitable solicitation."

Coordinator is the coordinator of the Stanislaus County office of consumer affairs and his authorized deputies, or such other person or agency as may be designated by resolution of the City Council pursuant to section 5.24.230.

County refers to the unincorporated area of the County of Stanislaus, State of California.

Direct benefit costs means the costs to a licensee necessary to conduct a sale or special event in which goods, services or other thing of value is offered in return for a charitable contribution.

Necessary costs are those which result in the purchase of goods and services which directly benefit the contributor. Such costs shall not include profit nor any expenses incurred in planning, promoting, conducting the sale or special event, such as building and equipment rental for solicitation purposes, salaries for ticket sellers, ushers, security officers, janitor and similar employees; compensation to salesmen and other direct solicitors; promotional expenses, such as printing, mailing, advertising, and consultants' fees.

License is the charitable solicitation license that is required by this chapter.

Office refers to the Stanislaus County office of consumer affairs.

Person means any individual, firm, partnership, corporation, association, society or other organization, and includes any trustee, receiver, assignee, agent, or other similar representative thereof.

Service of notice is the personal delivery to, or mailing to the person to whom the notice is directed. Mailing by registered or certified mail properly addressed to the person at the last known address, shall be presumed to be served on the second business day following the day on which the letter was mailed.

Solicitation means any oral or written request for charitable contributions including:

A. The distribution, circulation, mailing, posting, or publishing of any handbill, written advertisement, or publication;

B. Any form of announcement to the general public in which the public is requested to support a charitable cause;

C. The sale of, or the 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 a contribution to a charitable organization.

Solicitation expense is any cost incurred in the solicitation and collection of contributors, including, but not limited to, compensation to persons providing services, cost of advertising and promotion, purchase or rental of buildings and equipment and costs of mailing, telephone service and similar expenses.

(Ord. No. 2020-1057, § 1, 3-23-2020)

It shall be unlawful:

A. For any person to conduct a charitable solicitation campaign on the streets or in any public place or by house-to-house, or by business-to-business canvass in the City, without having a valid charitable solicitation license issued pursuant to this chapter.

B. For any person to utilize, in any manner whatever, any premises or facilities located in the City to conduct a charitable solicitation campaign without having a valid charitable solicitation license issued pursuant to this chapter.

(Ord. No. 2020-1057, § 1, 3-23-2020)

An application for a charitable solicitation license shall be made to the office upon forms provided by the coordinator. Such applications shall be sworn to and filed with the office at least 30 days prior to the time the license applied for shall become effective; provided, however, that the office may for good cause shown allow the filing of an application less than 30 days prior to the effective date of the license for which applied. When issued, the license shall be valid for one year. The application required in this section shall contain the following information:

A. The name and address of the principal office of the applicant and the name and address of a representative in the City authorized to receive notices and to act for the applicant.

B. The names and addresses of all principal persons or officers interested in or connected with the applicant.

C. If the applicant or any of the applicant's officers, principals, agents or employees who are or will be engaged in the proposed charitable solicitation in the City has ever been convicted of a crime against property, including theft, embezzlement, forgery or any form of fraud or the obtaining of money by false pretenses.

D. Whether any of the applicant's officers, principals, or other persons who will be engaged in a proposed charitable solicitation campaign has engaged or participated in a charitable solicitation campaign in the City within the prior three years.

E. The anticipated purposes for which the proceeds of any solicitation, sale, bazaar, exhibition, promotion, amusement, show, lecture, entertainment, or other enterprise or any part thereof are to be used including the amount of any compensation intended to be paid to any person, promoter, firm, association, or corporation out of such proceeds.

F. The total amount which is sought to be raised.

G. The banks or places where all or any part of the funds raised by such activities will be placed on deposit or invested.

H. The process or methods in which the solicitations will be undertaken.

I. The proposed source of funds which will be used to pay solicitation expenses.

J. Such other information in respect to the character, past activities and the proposed activity of the applicant and the parties directly interested in or engaged in the work as may be necessary or desirable to enable the office to make a full and complete investigation.

(Ord. No. 2020-1057, § 1, 3-23-2020)

The application for a charitable solicitation license shall be accompanied by a financial statement showing the amount of money raised by the applicant within the City for charitable purposes during the preceding year. The financial statement shall show the amount of moneys expended by the applicant in the collections of such charitable funds, and the programs or beneficiary agencies to whom the funds were disbursed.

(Ord. No. 2020-1057, § 1, 3-23-2020)

The financial statement required in section 5.24.050 may be submitted using any of the following forms:

A. A financial statement or treasurer's report regularly prepared by the licensee;

B. Forms furnished by the coordinator. In the event the applicant did not solicit in the City in the preceding year, the applicant shall submit such a statement for the most recent year within the last five years, if any, in which a solicitation was made, and an estimated financial statement in the form furnished by the coordinator.

(Ord. No. 2020-1057, § 1, 3-23-2020)

The holder of a charitable solicitation license shall:

A. Notify the coordinator, at least ten days before the start of a solicitation campaign, the areas in which solicitations will be made, the manner of solicitations, the person(s) responsible for the campaign, and any other information requested by the coordinator.

B. File a written completion report with the coordinator. The report shall state the total contributions secured from or as a result of the campaign, and the expenses of the campaign. Completion reports shall be made upon forms provided by the coordinator and shall be filed as follows:

1. In the event the solicitation campaign was conducted by a licensee with a permanent City office, such report shall be filed within 120 days after the close of solicitation.

2. In the event that the solicitation campaign was conducted by a licensee with no permanent City office, the report required by this section shall be filed with the coordinator within 30 days after the close of solicitations or before the commencement of another solicitation campaign, whichever comes first.

C. Maintain a system of accounting whereby all donations and disbursements are recorded. A licensee shall maintain records for special events which show in detail all expenditures which the licensee has deducted from revenues as consisting direct benefit costs.

(Ord. No. 2020-1057, § 1, 3-23-2020)

The coordinator may, in his/her discretion, determine that sections 5.24.050, 5.34.060, and subsection 5.34.070.C shall not apply to any person certifying:

A. That less than $500.00 is expected to be obtained in the next calendar year; or

B. That 100 percent of the funds obtained by charitable solicitations made by such person will be used for charitable purposes and that all solicitation expenses associated with any charitable solicitations made by the person so certifying will be donated by persons who have been expressly advised that such donations will be used for solicitation expenses and not for charity. The individual certifying for an organization shall be specifically authorized to execute the certificate for the organization.

(Ord. No. 2020-1057, § 1, 3-23-2020)

It shall be unlawful for any person knowingly to expend for solicitation expenses charitable contributions certified, pursuant to section 5.24.080, to be entirely for charitable purposes.

(Ord. No. 2020-1057, § 1, 3-23-2020)

The failure of any person to comply with any provision of this chapter shall be sufficient grounds to revoke or suspend a license or to deny an application filed within a period of three years of such failure. The coordinator shall act upon all applications for a license within 30 days after the date on which the application is filed. Notice of the action taken shall be served upon the applicant. The sufficiency of a financial statement, system of accounting or completion report shall be determined by the coordinator. The coordinator may make or cause to be made any investigation deemed necessary and, upon request, the applicant shall make available for inspection by the coordinator, all of the applicant's books, records, and papers relating to any solicitation or campaign. The coordinator shall have the authority at any time in which a charitable solicitation license is in effect to require an applicant or licensee to provide the additional information the coordinator determines to be necessary to accomplish the purposes of this chapter.

(Ord. No. 2020-1057, § 1, 3-23-2020)

Notwithstanding any provisions of this chapter which exclude or exempt certain persons from the licensing requirements hereof, any person may elect to comply with the licensing provisions of this chapter prior to making any noncommercial solicitation campaign; and the coordinator shall issue a license in the same manner as provided for any other applicant, and shall treat such applicant or licensee in every respect in the same manner as provided for any other licensee by this chapter, but the license shall be identified by the purpose for which the solicited funds will be used and not as a "charitable" solicitations license.

(Ord. No. 2020-1057, § 1, 3-23-2020)

Upon receipt of a full and complete application, the coordinator shall issue a license, provided that a license shall be denied if the applicant has been convicted of a crime against property, including theft, embezzlement, forgery; or any form of fraud; or the obtaining of money by false pretenses; or for making or disseminating any false or misleading statement; or if the solicitation is or will be conducted in any manner which is in violation of the laws of the State of California.

(Ord. No. 2020-1057, § 1, 3-23-2020)

All persons to whom a charitable solicitation license has been issued under this chapter shall furnish identification cards in the form provided by the office, to those agents and solicitors who must comply with section 5.24.140. The credentials shall include the name of the soliciting agency, a statement that the soliciting agency is licensed with the office, the phone number of the office, the expiration date of the license, the name and signature of the solicitor, and whether or not the solicitor is a regular member of the soliciting agency.

(Ord. No. 2020-1057, § 1, 3-23-2020)

It shall be unlawful for any person to solicit on the streets, or in any public place, or by house-to-house or business-to-business canvass without showing the person solicited the identification card required in section 5.24.130.

(Ord. No. 2020-1057, § 1, 3-23-2020)

When a solicitation is made by telephone, the solicitor shall, before any request for contributions is made, provide the potential contributor with the following information:

A. Name of solicitor;

B. Name of the soliciting agency;

C. That the soliciting agency is licensed by the coordinator;

D. Whether or not the solicitor is a regular member of the soliciting agency.

(Ord. No. 2020-1057, § 1, 3-23-2020)

Any solicitor receiving a contribution shall, upon request, give to the contributor a written receipt signed by a representative of the person under whose license the solicitation is conducted showing the date and amount of the contribution; provided, however, that this section shall not apply to any contribution collected by means of a closed box where it is impractical to determine the amount of such contribution.

(Ord. No. 2020-1057, § 1, 3-23-2020)

The coordinator shall give written notice of reasons for an intended action to deny an application for a license or to revoke or suspend a license. Within ten days after receiving such notice, an applicant may file with the coordinator a written request for an informal review hearing of the denial. The request shall state the applicant's grounds for requesting a review and shall specify any reasons why the proposed action is considered to be incorrect. The coordinator shall conduct a review hearing within 15 days after the request has been filed. Within ten days after the conclusion of the review hearing, the coordinator shall render a written decision sustaining, reversing or modifying the intended action. The coordinator may impose reasonable conditions for the continued use of the license. The decision shall be filed with the City and shall be available for public inspection and a copy shall be served upon the applicant.

(Ord. No. 2020-1057, § 1, 3-23-2020)

The Stanislaus County Consumer Affairs Advisory Council may attend a review hearing and act in an advisory capacity to the coordinator. Should the case be referred to the City, the Stanislaus County Consumer Affairs Advisory Council may act in an advisory capacity to the City Council.

(Ord. No. 2020-1057, § 1, 3-23-2020)

Any person aggrieved by any decision or action of the coordinator under the provisions of this chapter may appeal to the Council by written notice of appeal filed with the Clerk of the City Council within 15 days following receipt by such person of written notice of such decision or action. The notice of appeal shall be brought before the Council not later than the second regular Council meeting following the filing for the appeal with the Clerk. At such meeting, the Council will determine and announce the time and place of the hearing on the appeal.

(Ord. No. 2020-1057, § 1, 3-23-2020)

It is unlawful to solicit door-to-door or by telephone for any charitable purpose between the hours of 9:00 p.m. and 9:00 a.m.

(Ord. No. 2020-1057, § 1, 3-23-2020)

It shall be unlawful knowingly to make any false statement or to perpetrate any fraud in connection with any solicitation or in any application or report filed under this chapter.

(Ord. No. 2020-1057, § 1, 3-23-2020)

If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this chapter or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this chapter or any part thereof. The Council declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof irrespective of the fact that any one or more subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional, invalid, or ineffective.

(Ord. No. 2020-1057, § 1, 3-23-2020)

The City Council authorizes and directs that this chapter shall be administered by the Stanislaus County office of consumer affairs. If the Stanislaus County office of consumer affairs shall for any reason refuse or otherwise fail to accept the responsibility of administering the provisions of this chapter, then the City Council shall, by resolution, designate a new person or agency to act as administrator.

(Ord. No. 2020-1057, § 1, 3-23-2020)

The coordinator may make such rules and regulations as are reasonably necessary for the purpose of carrying out the provisions of this chapter.

(Ord. No. 2020-1057, § 1, 3-23-2020)