On February 6, 2012, Rep. Ken Summers and Sen. Cheri Jahn introduced HB 12-1236 – Concerning the Regulation of Charitable Solicitations and, in Connection Therewith, Making an Appropriation. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.
The bill makes several changes to the laws governing charitable solicitations. The bill excludes grant writers from the definition of “paid solicitor” unless the grant writer’s compensation is computed on the basis of funds raised from the grant. The bill specifies that fundraising on behalf of a named individual is not a charitable appeal and therefore the fundraiser does not have to register with the secretary of state.
In addition, the bill eliminates the need for a charity to request a 3-month extension for the filing of its initial or annual financial report with the secretary of state if the charity has filed for an extension with the internal revenue service.
The bill clarifies that only monetary contributions must be deposited with a financial institution. The bill requires paid solicitors, near the beginning of a telephone solicitation, to disclose that a contribution is not tax-deductible, if that is the case, before soliciting the donation and to state their full and complete name. The bill appropriates $41,440 to the department of state from the department of state cash fund for implementation of the act. The bill cleared the House on March 6. On March 15 the Finance Committee approved the bill and moved it to the Committee on Appropriations.
Summaries of other featured bills can be found here.