Rialto Municipal Code Ch. 5.32 Charitable Solicitation

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Prior ordinance history: Ord. 983.

A. The city council finds and declares, as such finding has been determined by the Legislature pursuant to Business and Professions Code Section 17510, that there exists in the area of solicitations and sales solicitations for charitable purposes a condition which has worked fraud, deceit and imposition upon the people of the city which existing legal remedies are inadequate to correct. Many solicitations or sales solicitations for charitable purposes have involved situations where funds are solicited from citizens of this city for charitable purposes, but an insignificant amount, if any, of the money solicited and collected actually is received by any charity. The charitable solicitation industry has a significant impact upon the well-being of the people of this city. The provisions of this chapter relating to solicitation and sale solicitations for charitable purposes are, therefore, necessary for the public welfare.

B. The city council declares that the purpose of this chapter is to safeguard the public against fraud, deceit and imposition, and to foster and encourage fair solicitations and sales solicitations for charitable purposes, wherein the person from whom the money is being solicited will know what portion of the money will actually be utilized for charitable purposes. This chapter will promote legitimate solicitation and sales solicitation for charitable purposes and restrict harmful solicitation methods, thus the people of this city will not be misled into giving solicitors a substantial amount of money which may not in fact be used for charitable purposes.

(Ord. 1227 § 1 (part), 1995)

A. "Charity" or "charitable organization" includes any person who, or any nonprofit community organization, fraternal, benevolent, educational, philanthropic, religious, or service organization, or government employee organization which, solicits or obtains contributions solicited from the public for charitable purposes or holds any assets for charitable purposes.

B. "Chief" means the chief licensing officer of the department, or his or her designated agent.

C. "Department" means the department of administrative services of the city.

D. "Solicitation for charity" means any request, plea, entreaty, demand, invitation, or attempt thereof, to give money, property or other consideration, in connection with which:

1. Any appeal is made for charitable purposes;

2. The name of any charity, philanthropic or charitable organization is used or referred to in any such solicitation as an inducement for making any such donation; or

3. Any statement is made to the effect that such donation or any part thereof will go or will be used for any charitable purpose or organization.

E. "Sales solicitation for charity" means the sale of, offer to sell, or attempt to sell any advertisement, advertising space, book, card, chance, coupon, device, magazine subscription, membership, merchandise, ticket of admission, product, or any other thing or service in connection with which:

1. Any appeal is made for charitable purposes;

2. The name of any charity, philanthropic or charitable organization is used or referred to in any such solicitation as an inducement for making any such sale; or

3. Any statement is made to the effect that the proceeds of such sale or any part thereof will go or will be used for any charitable purpose or organization.

F. "Sale" includes a gift made with the hope or expectation of monetary compensation.

(Ord. 1227 § 1 (part), 1995)

A. Except as otherwise provided in this chapter, no person, firm, charity or charitable organization shall conduct any solicitation for charity or any sales solicitation for charity, or cause any such solicitation to be conducted, within the jurisdictional boundaries of the city without first complying with the provisions of this chapter. Prior to any solicitation for charity or sales solicitation for charity, any charity or charitable organization desiring to conduct any such solicitation within the city boundaries must register, file a charitable statement as required by Section 5.32.050 of this chapter, and thereafter be issued an identification card for charitable solicitation or sale by the department of administrative services. The card shall be issued within two business days of the filing of a completed and duly signed application form by the charity or charitable organization with the department.

B. An application form supplied by the department shall be fully completed and subscribed by the applicant under penalty of perjury prior to the issuance of any identification card. The application form shall request the following information:

1. The name and address of each charity benefitted by the solicitation.

2. The names and addresses of all persons who will be conducting the solicitation.

3. The nonprofit-tax-exempt status under both state and federal tax law of the organization soliciting for charitable purposes, or if not tax-exempt, the charitable purpose of the organization or the charity benefitted by the solicitation, and the address and telephone number of the benefitted charity.

4. If the applicant is declaring, stating, or in any way representing to prospective donor or purchasers that the donation or sale is wholly or partially tax-deductible, the applicant shall provide with the application the most recent letters of tax exemption issued by the Franchise Tax Board of the State of California and the Internal Revenue Service of the United States of America.

5. If there is no charity benefitted, the manner in which the money or other consideration collected will be utilized for charitable purposes.

6. A statement regarding the amount, stated as a percentage of the total donation or purchase price, that will be used for a charitable purpose.

7. If paid fund raisers are paid a set fee rather than a percentage of the total amount raised, the estimated amount of direct fundraising expenses.

8. The percentage of the total gift or purchase price, if any, which may be deducted as a charitable contribution under both state and federal law.

9. The applicant shall state that the person solicited may request from the organization benefitted information regarding the revenues and expenses of the organization, including its administration and fundraising costs, by contacting the organization's office at the address disclosed, and that the organization shall provide this information within seven days after receipt of the request.

10. The beginning and ending dates of the charitable solicitation.

11. The applicant shall date and subscribe his/her name under penalty of perjury under the laws of the State of California declaring that the information contained on the application is true and correct.

C. A separate identification card shall be issued in the name of each person conducting the solicitation or sale. The identification card shall be signed and dated under penalty of perjury by an individual who is a principal, staff member, or officer of the soliciting organization, and shall contain the name and address of the soliciting organization or the person who signed the card. The information contained on the card shall be presented in at least ten-point type and shall include the following information:

1. The name and address of the charity benefitted.

2. If there is no charity benefitted, the manner in which the money or other consideration collected will be utilized for charitable purposes.

3. The amount, stated as a percentage of the total donation or purchase price, that will be used for a charitable purpose.

4. The non-tax-exempt status of the organization or fund, if the organization or fund for which the money or other consideration is being solicited does not have a charitable tax exemption under both federal and state law.

5. The amount of donation, stated as a percentage, if any, that is tax deductible.

6. If no portion of the donation or sale is tax deductible, the card shall state in at least twelve-point bold face type on the top of the card that "This contribution is not tax deductible."

D. If the organization making the solicitation represents that any nongovernmental organization by any name which includes, but is not limited to, the term "officer," "peace officer," "police," "law enforcement," "reserve officer," "deputy," "California Highway Patrol," "Highway Patrol," or "deputy sheriff," which would reasonably be understood to imply that the organization is composed of law enforcement personnel, the solicitor shall give the total number of members in the organization and the number of members working or living within the city, and if the solicitation is for advertising, the circulation of the publication in which the solicited ad will appear. If the organization making the solicitation represents any nongovernmental organization by any name which includes, but is not limited to, the term "fireman," "firefighter," "lady firefighter," "fire personnel," "reserve firefighter," "volunteer firefighter," "fire explorer," "fire strike-team," or "fire union," which would reasonably be understood to imply that the organization is composed of fire fighting personnel, the solicitor shall give the total number of members in the organization and the number of members working or living within the city, and if the solicitation is for advertising, the circulation of the publication in which the solicited advertisement will appear.

E. A volunteer who receives no compensation of any type from, or in connection with, a solicitation or sales solicitation by a charitable organization which has qualified for a tax exemption under 26 U.S.C.A. Section 501(c)(3) of the Internal Revenue Code of 1954, and who is eighteen years of age or younger, is not required to make any disclosures pursuant to this chapter.

F. This chapter does not apply to any city licensed bingo game or organization conducting such games; nor to sales or solicitations, or attempts thereof, within the membership of the charitable organization, or upon its regularly occupied premises.

G. A charity or charitable organization, including a service, fraternal, or religious organization, may register annually with the department of administrative services for all charitable sales and solicitations to be conducted within the city during the calendar year. The annual application form shall request the same information as contained in subsections (B)(1) through (11) inclusive of this section, but must be subscribed by both the president and secretary of the organization, and include each subscribers' address and telephone number and the name of the charity, charitable, service, fraternal, or religious organization and its business, meeting, or mailing address.

1. Prior to any solicitation for charity or sales solicitation for charity, any charity or charitable organization desiring to conduct any such solicitation within the city boundaries must register as provided herein, file a charitable statement as required by Section 5.32.050 of this chapter, and thereafter be issued an annual identification card for charitable solicitation or sale by the department of administrative services in the name of the organization.

2. The annual identification card for charitable solicitation or sale issued by the department of administrative services shall contain in at least eighteen-point bold face type the name of the organization.

3. The annual identification card, or a true and correct copy thereof, must be in possession of the solicitor, and a name plate identifying the individual solicitor must be prominently displayed on the anterior of the person whenever soliciting.

(Ord. 1227 § 1 (part), 1995)

A. An identification card, or a true and correct copy thereof, must be in the possession of each and every solicitor over the age of eighteen years whenever such person is soliciting, and such identification card, or copy thereof, must be tendered whenever requested by anyone being solicited, or at the request of any law enforcement officer.

B. Each volunteer, as described by Section 5.32.030(E) of this chapter, must be in possession of an exemption from disclosure card issued by the department whenever such person is soliciting, and such exemption card must be tendered whenever requested by anyone being solicited, or at the request of any law enforcement officer. Or, in lieu thereof, each volunteer must be in possession of an organizational exemption from disclosure card issued by the department of administrative services shall contain in at least eighteen-point bold face type the name of the exempt organization. Either card, or true and correct copy thereof, must be in possession of the volunteer, and a name plate or school identification card identifying the individual volunteer solicitor must be prominently displayed on the anterior of the person whenever soliciting.

C. The exemption from disclosure card shall contain the following statement in at least twelve-point bold face type:

"This person has been represented to the department of administrative services by the person, firm, charity or charitable organization which has registered for charitable solicitation with the department that the volunteer receives no compensation of any type from, or in connection with, this solicitation or sales solicitation by a charitable organization, and such charitable organization has qualified for a tax exemption under 26 U.S.C.A. Section 501(c)(3) of the Internal Revenue Code of 1954."

(Ord. 1227 § 1 (part), 1995)

Each charity prior to conducting a solicitation for charity or sales solicitation for charity within the city must file with the department of administrative services at the time of registration a statement certifying the identity of the charity to be benefitted by the solicitation, the type of benefit provided, and that the charity will provide at the conclusion of the solicitation, upon the request of the city, an audited financial statement, on the basis of generally accepted accounting principles as defined by the American Institute of Certified Public Accountants and the Financial Accounting Standards Board, of the funds collected, the total administrative costs, and the net amount actually raised for the charitable or beneficial purpose as a result of the solicitation or sales solicitation. The statement shall contain the names of the elected officers of the charity and their home addresses and telephone numbers, the headquarters mailing address of the applicant charity, and the proposed use of funds, proceeds, property or goods to be collected, including the estimated percentage to be used for administrative costs or promotional purposes. The statement shall contain the following warning:

"The acceptance of charitable contributions by a charity or any person soliciting on behalf of a charity establishes a charitable trust and a duty on the part of the charity and the person soliciting on behalf of the charity to use those charitable contributions for the declared charitable purposes for which they were sought. Failure to transfer the contribution to charity or the use of the contributions as other than represented shall subject the solicitor or seller to the penalties of law."

The statement shall be dated and subscribed in the same manner as the application form for the identification card.

(Ord. 1227 § 1 (part), 1995)

The practice of being in and upon private residences in the city by solicitors for the purpose of soliciting for charity or sales solicitation for charity when the owner(s) or occupant(s) indicate by a plainly visible sign that such practice is not wanted is declared a nuisance.

Noncompliance by any person or organization with the provisions of this chapter shall subject the solicitor or seller, in addition to and concurrent with other penalties and remedies available under law, to criminal prosecution as a misdemeanor which can include imprisonment for up to six months in the county jail or a fine of up to one thousand dollars, or both such imprisonment and fine.

(Ord. 1227 § 1 (part), 1995)

(Ord. No. 1554, § 3, 12-9-14)

Notwithstanding the right of volunteers to be exempt from the disclosure provisions of Section 5.32.030, any organization conducting charitable solicitation or sales solicitation with volunteers under the age of eighteen years, and which has qualified for a tax exemption under 26 U.S.C.A. Section 501(c)(3) of the Internal Revenue Code of 1954, must complete an application form and charitable statement and provide an exemption from disclosure card, prior to permitting the volunteers to solicit.

(Ord. 1227 § 1 (part), 1995)

It is unlawful to conduct solicitation for charity or sales solicitation for charity door-to door between the hours of 7:00 p.m. and 9:00 a.m.

(Ord. 1227 § 1 (part), 1995)

(Ord. No. 1554, § 4, 12-9-14)

If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the invalidity shall not affect other provisions or applications of this section which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.

(Ord. 1227 § 1 (part), 1995)