We built a service to assist nonprofits in mobile donations. Before launch, however, we found out that in order to do this, we have to register with the State attorney general's office as a "fundraising counsel." This is a $250 fee. Plus it carries with it other requirements etc. We don't want to do this. Is there a way around this? We would not be doing any soliciting for the nonprofits. We would just be charging them for building the mobile service for them. I don't see why we should have to go through all this redtape just to do this. I spoke with my business lawyer, and she says, yes, but I want a second opinion!Thanks
According to the Model Solicitations Act of 1986 (adopted by the National Association of Attorneys General, 'Fund raising counsel' means a 'person who for compensation plans, manages, advises, consults, or prepares material for, or with respect to, the solicitation in this state ofcontributions for a charitable organization, but who does not solicit contributions and who does not employ, procure, or engage any compensated person to solicit contributions.”
I can see why you may need to register with your state according to this definition, but you may want to speak with someone in the AG's office to verify that you do indeed need to. Many states rules portions of the Act unconstitutional so it may not apply to you afterall.
According to the Model Solicitations Act of 1986 (adopted by the National Association of Attorneys General, 'Fund raising counsel' means a 'person who for compensation plans, manages, advises, consults, or prepares material for, or with respect to, the solicitation in this state ofcontributions for a charitable organization, but who does not solicit contributions and who does not employ, procure, or engage any compensated person to solicit contributions.”
I can see why you may need to register with your state according to this definition, but you may want to speak with someone in the AG's office to verify that you do indeed need to. Many states rules portions of the Act unconstitutional so it may not apply to you afterall.
NicoleD | Former Moderator | 3/14/2011 - 10:33 am
petrosianii | Window Shopper | 4/22/2011 - 5:13 pm
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