Hawthorne Municipal Code Ch. 9.66 Charitable Solicitations

The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

"Charitable organization"

means any person who is or holds himself out to be established, for profit or not for profit, for any benevolent, educational, philanthropic, humane, scientific, artistic, patriotic, social welfare or advocacy, public health, environmental conservation, civic, safety, fraternal, historical, athletic, medical, religious or other eleemosynary purpose, or any person who in any manner employs a charitable appeal as the basis for any solicitation or an appeal that suggests that there is a charitable purpose to any solicitation. Such term includes a chapter, branch, area office, or similar affiliate soliciting contributions within the city for a charitable organization.

"Charitable purpose"

means any benevolent, philanthropic, patriotic, educational, humane, scientific, artistic, public health, social welfare or advocacy, environmental conservation, civic, safety, fraternal, historical, athletic, medical, religious or other eleemosynary objective.

"Charitable sales promotion"

means an advertising or sales campaign conducted by any person, professional solicitor, federated fundraising organization, commercial co-venturer, professional fundraising consultant, or sponsor which represents that the purchase or use of goods or services offered by the person, professional solicitor, federated fundraising organization or sponsor is to benefit a person or charitable or sponsor organization; provided that advertising services to a charitable or sponsor organization does not, in itself, constitute a charitable sales promotion.

"Commercial co-venturer"

means any person who regularly and primarily is engaged in trade or commerce other than in connection with solicitation of contributions and who conducts a charitable sales promotion or a sponsor sales promotion.

"Contribution"

means the promise, pledge, or grant of any money, property, financial assistance, service, or any other thing of value in response to a solicitation by any person on behalf of a charitable or sponsor purpose. "Contribution" includes, in the case of an offer of goods or services to the public, the difference between the direct cost of the goods or services and the price at which the goods or services are resold to the public. "Contribution" does not include fees, dues, or assessments paid by members, provided that membership is not conferred solely as consideration for making a contribution in response to a solicitation. "Contribution" does not include funds obtained by a charitable organization or sponsor pursuant to government grant or contracts.

"Conviction"

means a determination of guilt resulting from plea or trial, regardless of whether the adjudication was upheld or the imposition of a sentence was suspended, in connection with any federal, state or local ordinance, act, or law regulating theft, fraud, misrepresentation or the solicitation of funds.

"Department"

means the city of Hawthorne department of licensing and code enforcement.

"Direct collection"

campaign means any solicitation of funds on or on behalf of a charitable organization where a pledge or donation for the charitable organization is collected by any person without use of the mail.

"Educational institutions and organizations"

means a public or private preschool, elementary, or secondary school or institution; or a public or private institution of vocational, professional, or post-secondary education.

"Emergency service employee"

means any employee who is a firefighter, ambulance driver, emergency medical technician, or paramedic.

"Federated fundraising organization"

means a federation of independent charitable organizations which have voluntarily joined together, including, but not limited to, a United Way or community chest, for purposes of raising and distribution contributions for and among themselves, and where membership does not confer operating authority and control of the individual organization upon the federated group organization.

"Financial record"

means computer records, banking records and statements, checks, drafts, receipts and papers of any description which indicate the receipt of expenditure of contributions.

"Fundraising costs"

means those costs incurred in inducing others to make contributions to a charitable organization or sponsor. "Fundraising costs" include, but are not limited to, salaries, commissions, rent, telephone service, acquiring and obtaining mailing lists, printing, mailing, medical expenses and all direct and indirect costs of soliciting, as well as the cost of unsolicited merchandise sent to encourage contributions.

"Law enforcement officer"

means any person who is elected, appointed, or employed by the federal government, the state or any political subdivision thereof, and:

Who is vested with authority to bear arms and make arrests and whose primary responsibility is the prevention and detection of crime or the enforcement of the criminal, traffic, highway, marine, and fish, game and wildlife laws of the state; or

Whose responsibility includes supervision, protection, care, custody, or control of inmates within a penal institution.

"Mail"

means a system by which letters and other materials are transported by the U.S. Postal Service or any private carrier.

"Membership"

means the relationship of a person to an organization that entitles that person to the privileges, professional standing, honors, or other direct benefit of the organization in addition to the right to vote, elect officers, and hold the office in the organization.

"Owner"

means any person who has a direct or indirect interest in any professional solicitor, professional fundraising consultant, federated fundraising organization or sponsor.

"Parent organization"

means that part of a charitable organization or sponsor which coordinates, supervises, or exercises control over policy, fundraising, and expenditures or assists or advises one or more chapters, branches, or affiliates of such organization.

"Person"

means any individual, organization, trust, foundation, group, association, entity, partnership, corporation, sponsor, or society, and the agent(s), employee(s) or officer(s) of any such person.

"Professional fundraising consultant"

means any person who is retained by a charitable organization or sponsor for a fixed or variable fee or percentage fee to plan, advise, consult, or prepare material for solicitation of contributions, but who does not manage, conduct, or carry on any fundraising activity, or solicit contributions, or employ, procure, or engage any compensated person to solicit contributions and who does not at any time have custody or control of contributions. A volunteer, employee or salaried officer of a charitable organization or sponsor is not a professional fundraising consultant. An attorney, investment counselor, or banker who advises an individual, corporation, or association to make a charitable contribution is not a professional fundraising consultant as the result of such advice.

"Professional solicitor"

means any person who, for compensation, performs for a charitable organization or any service in connection with which contributions are or will be solicited by the compensated person or by any person it employees, procures, or otherwise engages, directly or indirectly, as an agent, employee, independent contractor or subcontractor, in connection with the solicitation of contributions for or on behalf of a charitable organization or sponsor. A volunteer, employee or salaried officer of a charitable organization or sponsor is not a professional solicitor. An attorney, investment counselor, or banker who advises an individual, corporation, or association to make a charitable contribution is not a professional solicitor as the result of such advice. Any person, corporation, association or other organization which places advertising, or prepares or manages a mailing campaign, and sends materials to the public for the purpose of soliciting funds by charitable organization or a sponsor, or any person that conducts any direct collection campaign shall be considered a professional solicitor and not a professional fundraising consultant.

"Religious institution"

means any church, ecclesiastical or denominational organization, or established physical place for worship, at which nonprofit religious services and activities are regularly conducted and carried on, and includes those religious groups which do not maintain specific places of worship. "Religious institution" also includes any separate group or corporation which forms an integral part of a religious institution which is exempt from federal income tax under the provisions of Section 501(c)(3) of the Internal Revenue Code, and which is not primarily supported by funds solicited outside its own membership or congregation.

"Solicitation"

means a request, direct or indirect, for money, property, financial assistance, service, or any other thing of value on the plea or representation that such money, property, financial assistance, service, or other thing of value or a portion of it will be used for a charitable or sponsor purpose or will benefit a charitable organization or sponsor. "Solicitation" includes, but is not limited to, the following methods of requesting or securing the promise, pledge, or grant of money, property, financial assistance, service, or any other thing of value:

Any oral or written request, including without limitation, requests made by telephone or electronic mail;

Distributing, circulating, posting, or publishing any handbill, written advertisement, or other publication that directly or by implication seeks to obtain any contributions; or

Selling or offering or attempting to sell any advertisement, advertising space, book, card, coupon, chance, device, magazine, membership, merchandise, subscription, sponsorship, flower, admission, ticket, food, or other service or tangible good, item, or thing of value, or any right of any description in connection with which any appeal is made for any charitable organization or sponsor and is used or referred to in any such appeal as an inducement or reason for making the sale or when, in connection with the sale or offer or attempt to sell, any statement is made that all or part of the proceeds from the sale will be used for any charitable or sponsor purpose or will benefit any charitable organization or sponsor. A solicitation is considered as having taken place whether or not the person making the solicitation receives any contribution. A solicitation does not occur when a person applies to the government or to an organization that is exempt from federal income taxation under Section 501(c) of the Internal Revenue Code for a grant or an award.

"Sponsor"

means a group which hosts an event or solicits contributions on behalf of a charitable organization.

"Violation"

means that a person has committed a prohibited act under this chapter, or any other federal, state or local ordinance, act, or law governing theft, fraud, misrepresentation or the solicitation of funds.

(Ord. 1715 § 4, 2001)

All territory within the legal boundaries of the city shall be embraced by the provisions of this chapter.

(Ord. 1715 § 4, 2001)

The intent of the city council in adopting this chapter is to require registration and full public disclosure by persons who solicit contributions for a charitable or sponsor purpose from the public within the legal boundaries of the city. It is further the intent of the city council that the information required under this chapter be made available to the public in order to prevent deception, fraud, or misrepresentation in the solicitation, use and reporting of contributions.

(Ord. 1715 § 4, 2001)

This chapter shall be liberally construed to accomplish its purpose.

(Ord. 1715 § 4, 2001)

A. This chapter shall not apply to any solicitation made when the solicitation is directed toward persons who are members of the entity at the time of the solicitation.

B. This chapter shall not apply to any solicitation made on premises owned or occupied by the person upon whose behalf such solicitation is made where the person being solicited is physically present on such premises.

C. This chapter shall not apply to any solicitations conducted by school children or college or university students, or their parents, teachers or instructors under the direction and supervision of their parents, school, college or university officials, teachers, instructors, or principals for the purpose of financing extracurricular, social, athletics, artistic, scientific, or cultural programs of any educational institution or organization, which shall include, but shall not be restricted to, solicitations for band and athletic uniforms, scientific and/or artistic implements and literary matter.

D. This chapter shall not apply to any solicitation for the relief of any individual specified by name at the time of the solicitation where the solicitor establishes a legal depository account and represents in each case that the entire amount collected, without any reduction whatever, shall be turned over to the named beneficiary.

E. This chapter shall not apply to state agencies or other governmental entities.

F. This chapter shall not apply to any solicitation made on premises owned or occupied by any department, agency, commission, or any other office of any federal, state or county public entity where the person being solicited is physically present on such premises.

G. The exemptions in this section do not apply to any sponsor or to a person or group which is or holds out to be soliciting contributions by the use of any name which implies that the group or person is in any way affiliated with or organized for the benefit of emergency services employees or law enforcement officers.

(Ord. 1715 § 4, 2001)

A. Upon complaint of any person, or upon its own initiation, if probable cause exists to suspect a violation of this chapter, the department may investigate any person to determine whether such person has violated any provision of this chapter.

B. The department may cite any person whom it determines is violating this chapter or is engaging in a prohibited act under this chapter.

C. The department shall promulgate the forms deemed necessary to carry out this chapter.

(Ord. 1715 § 4, 2001)

A. Any notice required under this chapter shall be in writing and sent by certified mail or hand delivery to the mailing address set forth on the charitable solicitations registration statement. This mailing address shall be considered the correct mailing address unless the department has been otherwise notified in writing.

B. Any information contained in a charitable solicitations registration statement under this chapter is subject to the California Public Records Act, Government Code Sections 6250 et. seq.

(Ord. 1715 § 4, 2001)

It is the responsibility of any person filing a charitable solicitations registration statement, to ensure compliance with this chapter, notwithstanding the issuance of an occupational license or any other governmental permit.

(Ord. 1715 § 4, 2001)

A. No charitable organization, sponsor, commercial co-venturer, professional fundraising consultant, federated fundraising organization, professional solicitor, or other person, unless otherwise exempted, shall solicit contributions in the city by any means or have funds solicited on its behalf by any person without first filing a charitable solicitations registration statement under this chapter.

B. No commercial co-venturer shall engage in charitable or sponsor solicitation activity without first determining that the charity or sponsor has complied with the registration requirements of this chapter, and without written permission of the charity or sponsor.

(Ord. 1715 § 4, 2001)

A. Any charitable organization, sponsor, commercial co-venturer, professional fundraising consultant, federated fundraising organization, professional solicitor, or person desiring to engage in solicitation of contributions in the city shall file a sworn charitable solicitations registration statement with the department, which contains the following information and shall be accompanied by the following documents:

1. If the person filing the charitable solicitations registration statement is:

a. An individual, the individual shall state the individual's legal name and any aliases;

b. A group, the group shall state its legal identify;

c. A partnership, the partnership shall state its complete name and any fictitious name, and the names of all partners having either direct, managerial, supervisory or advisory responsibilities for the solicitation of charitable contributions under this chapter, and whether the partnership is general or limited; or

d. A corporation, the corporation shall state its complete name and any fictitious name, the date of its incorporation, evidence that the corporation is in good standing, the names and capacity of all officers, directors, and stockholders having either direct, managerial, supervisory or advisory responsibilities for the solicitation of charitable contributions under this chapter and, if applicable, the name of the registered corporate agent and the address of the registered office for service of process.

2. Whether the person filing the charitable solicitations registration statement or any other individual listed pursuant to subsection (A)(1) of this section has, within the five-year period immediately preceding the filing of the charitable solicitations registration statement, been convicted of a violation of this chapter, or any other federal, state or local ordinance, act or law governing theft, fraud, misrepresentation or the solicitation of funds, and if so, the conviction involved the date of conviction, and the place of conviction.

3. Whether the person filing the charitable solicitations registration statement or any other individual listed pursuant to subsection (A)(1) of this section has had any permit under any federal, state or local ordinance governing charitable solicitations, suspended, revoked, or denied, or by court order has been required to cease operation, or been fined or otherwise administratively sanctioned, including the date of the actions.

4. The mailing address, physical street address, telephone number of the person filing the charitable solicitations registration statement.

5. If applicable, the statement of agreement or letter of authorization of the person filing the charitable solicitations registration statement made with any commercial co-venturer, federated fundraising organization, professional fundraising consultant, professional solicitor, or sponsor, together with a copy of such agreement.

6. A sworn statement attesting to the veracity and accuracy of the information provided in the charitable solicitations registration statement.

7. The charitable solicitations registration statement shall also contain the following information about the charitable organization:

a. The purpose or work of the organization; and

b. The manner in which the purpose or work of the organization is carried out.

8. The charitable solicitations registration statement shall also contain the following information regarding each activity involving the solicitation:

a. The name of the solicitation;

b. The manner or method of solicitation;

c. The total dollar amount of the contemplated receipts of the solicitation and the total dollar amount of the contemplated expenses of the solicitation.

B. No license fee or license application fee under Title 5 of this code shall be required to accompany the filing of any charitable solicitations registration statement under this chapter.

(Ord. 1715 § 4, 2001)

A person who has filed a charitable solicitations registration statement may solicit charitable solicitations for a period of twelve months from the date of the filing of the charitable solicitations registration statement.

(Ord. 1715 § 4, 2001)

A. Each person who has filed a charitable solicitations registration statement under this chapter shall be subject to the following requirements concerning records.

1. Each person who has filed a charitable solicitations registration statement under this chapter shall maintain true and accurate financial records whereby all contributions and all disbursements for charitable solicitations made in connection with a charitable solicitations registration statement under this chapter are clearly entered upon the financial records.

2. Each person who has filed a charitable solicitations registration statement under this chapter shall keep the financial records required by this section for at least three years after the filing of a charitable solicitations registration statement under this chapter.

B. Each person who has filed a charitable solicitations registration statement under this chapter shall, within fourteen months after filing the charitable solicitations registration statement under this chapter, file with the city clerk a statement which shows:

1. The total dollar amount of all contributions made in connection with the charitable solicitations registration statement under this chapter;

2. The total dollar amount of all expenses for charitable solicitations made in connection with the charitable solicitations registration statement under this chapter;

3. The uses for which the contributions made in connection with the charitable solicitations registration statement under this chapter were or are to be disbursed or distributed.

(Ord. 1715 § 4, 2001)

A. It shall be a violation of this chapter for any person to solicit any contribution, or to authorize any solicitation on its behalf, for any charitable or sponsor purpose governed by this chapter where the person has not filed a charitable solicitations registration statement under this chapter within the twelve-month period before the date of such solicitation or authorization.

B. It shall be a violation of this chapter for any professional solicitor, professional fundraising consultant, commercial co-venturer, federated fundraising agency or sponsor to solicit on behalf of or in conjunction with any affiliated or client charity before that charity or sponsor has filed a charitable solicitations registration statement under this chapter.

(Ord. 1715 § 4, 2001)

It shall be a violation of this chapter for any person to make a false statement or to provide false information in a charitable solicitations registration statement under this chapter, provided that the false statement was made or the false information was filed either wilfully and with knowledge of its falsity or negligently without due consideration of those facts which by the use of ordinary care such person should have known.

(Ord. 1715 § 4, 2001)

It shall be a violation of this chapter for any person to make or perpetrate a false or misleading statement, deception or fraud in connection with any solicitation of any contribution for any charitable or sponsor purpose or purported charitable or sponsor purpose, provided that the false or misleading statement was made either wilfully and with knowledge of its falsity or negligently without due consideration of those facts which by the use of ordinary care such person should have known.

(Ord. 1715 § 4, 2001)

It shall be a violation of this chapter for any person to use the fact that a charitable solicitations registration statement has been filed under this chapter so as to lead the public to believe that the filing of such a charitable solicitations registration statement constitutes an endorsement or approval by the city of the charitable or sponsor purpose.

(Ord. 1715 § 4, 2001)

It shall be a violation of this chapter for any person soliciting charitable contributions on behalf of another person to commingle contributed funds or property with the soliciting person's own funds or property.

(Ord. 1715 § 4, 2001)

It shall be a violation of this chapter for any person to solicit under this chapter at or to a private residence between the hours of 9:00 p.m. and 8:00 a.m.

(Ord. 1715 § 4, 2001)

It shall be a violation of this chapter for any person to conceal the identity of an organization on whose behalf solicitations are being made.

(Ord. 1715 § 4, 2001)

It shall be a violation of this chapter for any person to fail to maintain records or to make false statements or to provide false information in the records, as required under this chapter.

(Ord. 1715 § 4, 2001)

It shall be a violation of this chapter for any person to fail to comply with the reporting requirements, as required under this chapter.

(Ord. 1715 § 4, 2001)

It shall be a violation of this chapter for a person to represent that a contribution is for or on behalf of a charitable organization or sponsor without first being authorized in writing by the charitable organization.

(Ord. 1715 § 4, 2001)

It shall be a violation of this chapter for a person to solicit contributions for or on behalf of a named individual without establishing a legal depository account.

(Ord. 1715 § 4, 2001)

It shall be a violation of this chapter for a person to fail to apply contributions for the stated purpose of the solicitation.

(Ord. 1715 § 4, 2001)

It shall be a violation of this chapter for a person to use a name, symbol, emblem, device, service mark, or statement so closely related to or similar to that used by another charitable or sponsor organization that the use thereof would mislead the public.

(Ord. 1715 § 4, 2001)

It shall be a violation of this chapter for a person to falsely state that the person making the solicitation is a member of or a representative of a charitable or sponsor organization, or falsely state or represent that such person is a member of or represents a law enforcement or emergency service organization, or falsely state or represent that such person is part of a governmental agency or body.

(Ord. 1715 § 4, 2001)

It shall be a violation of this chapter for a person to fail to provide complete and timely payment to a charitable or sponsor organization of the proceeds from a solicitation campaign or sales promotion.

(Ord. 1715 § 4, 2001)