San Marcos Municipal Code Art. II Charitable Solicitations

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 or sales solicitations for charitable purposes, wherein the person being solicited will know what portion of the money will actually be utilized for charitable purposes.

For the purposes of this chapter, the following definitions shall apply:

(a)

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

(b)

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

(c)

Sales solicitation for charitable purposes 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 or any other thing or service in connection with which:

(1)

Any appeal is made for charitable purposes; or

(2)

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

(3)

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

(d)

Solicitation for charitable purposes means any request, plea, entreaty, demand, or invitation, or attempt thereof, to give money or property, in connection with which:

(1)

Any appeal is made for charitable purposes; or

(2)

The name of any charity, philanthropic or charitable organization is used or referred to in any such appeal, as an inducement for making any such gift; or

(3)

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

A solicitation for charitable purposes, or a sale, offer or attempt to sell for charitable purposes, includes the making or disseminating or causing to be made or disseminated before the public in this State, in any newspaper or other publication, or in any determining device, or by public outcry or proclamation or in any other manner or means whatsoever any such solicitation.

A solicitation is completed whether or not the person making or receiving the solicitation receives or makes any contribution or makes any sale or purchase referenced to in this chapter.

(a)

Prior to any solicitation or sales solicitation for charitable purposes, the solicitor or seller shall exhibit to the prospective donor or purchaser a card entitled "Solicitation or Sale for Charitable Purposes Card." The 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. The card shall give the name and address of the soliciting organization or the person who signed the card and the name and business address of the paid individual who is doing the actual soliciting.

(b)

In lieu of exhibiting a card, the solicitor or seller may distribute during the course of the solicitation any printed material, such as a solicitation brochure, provided such material complies with the standards set forth below, and; provided, that the solicitor or seller informs the prospective donor or purchaser that such information as required below is contained in the printed material.

(c)

Information on the card or printed material shall be presented in at least ten-point type and shall include the following:

(1)

The name and address of the combined campaign, each organization, or fund on behalf of which all or any part of the money collected will be utilized for charitable purposes;

(2)

If there is no organization or fund, the manner in which the money collected will be utilized for charitable purposes;

(3)

The amount, stated as a percentage of the total gift or purchase price, that will be used for direct fundraising expenses. If paid fundraisers are paid a set fee rather than a percentage of the total amount raised, the card shall show the total cost that is estimated will be used for direct fundraising expenses. If the solicitation is not a sale solicitation, the card may state, in place of the amount of fundraising expenses, that an audited financial statement of such expenses may be obtained by contacting the organization at the address disclosed;

(4)

The non-tax-exempt status of the organization or fund, if the organization or fund for which the money or funds are being solicited does not have a charitable tax exemption under both federal and State law;

(5)

The percentage of the total gift or purchase price which may be deducted as a charitable contribution under both federal and State law. If no portion is so deductible, the card shall state that "This contribution is not tax deductible."

(d)

Knowing and willful noncompliance by any individual volunteer who receives no compensation of any type from, or in connection with, a solicitation by any charitable organization shall subject the solicitor or seller to the penalties of this chapter.

(e)

When the solicitation is not a sales solicitation, any individual volunteer who receives no compensation of any type from, or in connection with, a solicitation by any charitable organization, may comply with the disclosure provisions by providing the name and address of the charitable organization on behalf of which all or any part of the money collected will be utilized for charitable purposes for which the solicitation is made, and by stating to the person solicited that information about revenues and expenses of such organization, including its administration and fundraising costs, may be obtained by contacting the organization's office at the address disclosed. Such organization shall provide such information to the person solicited within seven days after receipt of the request. If the volunteer is ten years of age or younger, he is not required to make any disclosures.

If the initial solicitation or sales solicitation is made by radio, television, letter, telephone or any other means not involving direct personal contact with the person solicited, this solicitation shall clearly disclose the information required by Section 5.20.150. This disclosure requirement shall not apply to any radio or television solicitation of 60 seconds or less. If the gift is subsequently made or the sale is subsequently consummated, the solicitation or sale for charitable purposes card shall be mailed to or otherwise delivered to the donor, or to the buyer with the item or items purchased.

Any person or organization engaging in any regulated activity set forth in Sections 5.20.150 and 5.20.160 shall register with the Issuing Officer. Registration shall be done on a form prescribed by the Issuing Officer and shall be deemed completed once the following information is provided:

(a)

The full name, mailing address and telephone number of the person or organization sponsoring, promoting or conducting the proposed solicitations;

(b)

The full name, mailing address and telephone number of the individual person or persons who will have supervision of and responsibility for the proposed solicitations;

(c)

The subject matter of the proposed solicitations, and the purpose thereof;

(d)

A description of the proposed solicitation indicating the type of communication to be involved; and

(e)

The dates and hours which the solicitations are proposed to begin, and the expected duration of the solicitations.

The financial records of a soliciting organization shall be maintained on the basis of generally accepted accounting principles as defined by the American Institute of Certified Public Accountants and the Financial Accounting Standards Board.

The provisions of this chapter shall not apply to solicitations, sales, offers, or attempts to sell within the membership of a charitable organization or upon its regular occupied premises, nor shall it apply to funds raised as authorized by Section 326.5 of the Penal Code.