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§ 24.5 REGISTRATION REQUIREMENTSexclude fundraising by political action committees, labor organizations, andtrade organizations.Some of this regulation is applicable to a professional fundraiser (or similarterm). The majority of the states define a professional fundraiser as one who, for afixed fee under a written agreement, plans, conducts, advises, or acts as a consultant,whether directly or indirectly, in connection with soliciting contributionsfor, or on behalf of, a charitable organization. This definition usually excludesthose who actually solicit contributions. Other terms used throughout the statesinclude professional fundraising counsel, professional fundraiser consultant, and independentfundraiser.Much of this regulation is applicable to those who are professional solicitors.Most of the states that use this term define this type of person as one who, for compensation,solicits contributions for or on behalf of a charitable organization,whether directly or through others, or a person involved in the fundraising processwho does not qualify as a professional fundraiser. A minority of states definethe term as a person who is employed or retained for compensation by a professionalfundraiser to solicit contributions for charitable purposes.There is considerable confusion in the law as to the appropriate line ofdemarcation between these two terms. Because the extent of regulation can befar more intense for a professional solicitor, it is often very important for an individualor company to be classified as a professional fundraiser rather than a professionalsolicitor.Some states impose disclosure requirements with respect to the processknown as commercial co-venturing or charitable sales promotions. This processoccurs when a business announces to the general public that a portion (a specificamount or a specific percentage) of the purchase price of a product or servicewill, during a stated period, be paid to a charitable organization. This activityresults in a payment by the business to a charitable organization, the amount ofwhich depends on consumer response to the promotion by, and positive publicityfor, the business sponsor.§ 24.5 REGISTRATION REQUIREMENTSA cornerstone of each state’s charitable solicitation law is the requirement that acharitable organization (as defined in that law and not exempt from the obligation(see below)) that intends to solicit—by any means—contributions from personsin that state must first apply for and acquire permission to undertake thesolicitation. This permission is usually characterized as a registration; some statesdenominate it a license or a permit. If successful, the result is authorization to conductthe solicitation. These permits are usually valid for one year.These state laws apply to fundraising within the borders of each stateinvolved. Thus, a charitable or like organization soliciting in more than one statemust register under (and otherwise comply with) not only the law of the state inwhich it is located, but also the law of each of the states in which it will be fundraising.Moreover, many counties, townships, cities, and similar jurisdictionsthroughout the United States have ordinances that attempt to regulate charitablefundraising within their borders. 631