Contents

STATE FUNDRAISING REGULATIONmay lawfully solicit funds in a jurisdiction. 3 Four years later, the Court held thatthe free speech principles apply, even though the state offers a charitable organizationan opportunity to show that its fundraising costs are reasonable, despitethe presumption that costs in excess of a specific ceiling are “excessive.” 4Another four years later, the Court held that these free speech principles appliedwhen the limitation was not on a charity’s fundraising costs but on the amountor extent of fees paid by a charitable organization to professional fundraisers orprofessional solicitors. 5 Subsequent litigation suggests that the courts are consistentlyreinforcing the legal principles so articulately promulgated by the SupremeCourt during the 1980s.§ 24.9 PROHIBITED ACTSMost states’ charitable solicitation laws contain a list of one or more acts inwhich a charitable organization (and perhaps a professional fundraiser and/orprofessional solicitor) may not lawfully engage. These acts may be some or all ofthe following:• A person may not, for the purpose of soliciting contributions, use thename of another person (except that of an officer, director, or trustee of thecharitable organization by or for which contributions are solicited) withoutthe consent of that other person. This prohibition usually extends tothe use of an individual’s name on stationery or in an advertisement orbrochure, or as one who has contributed to, sponsored, or endorsed theorganization.• A person may not, for the purpose of soliciting contributions, use a name,symbol, or statement so closely related or similar to that used by anothercharitable organization or governmental agency that it would tend to confuseor mislead the public.• A person may not use or exploit the fact of registration with the state so asto lead the public to believe that the registration in any manner constitutesan endorsement or approval by the state.• A person may not represent to or mislead anyone, by any manner, means,practice, or device, to believe that the organization on behalf of which thesolicitation is being conducted is a charitable organization or that the proceedsof the solicitation will be used for charitable purposes, when that isnot the case.• A person may not represent that the solicitation for charitable gifts is foror on behalf of a charitable organization or otherwise induce contributionsfrom the public without proper authorization from the charitableorganization.3 Village of Schaumberg v. Citizens for a Better Environment, 444 U.S. 620 (1980).4 Secretary of State of Maryland v. Joseph H. Munson Co., Inc., 467 U.S. 947 (1984).5 Riley v. National Fed’n of the Blind of North Carolina, Inc., 487 U.S. 781 (1988). 634