H 4396

South Carolina General Assembly
126th Session, 2025-2026
Bill 4396
Indicates Matter Stricken
Indicates New Matter
(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)
A bill
TO AMEND THE SOUTH CAROLINA CODE OF LAWS
BY AMENDING SECTION 33-56-50, RELATING TO ORGANIZATIONS EXEMPT FROM
REGISTRATION PROVISIONS, SO AS TO INCREASE THRESHOLDS FOR CHARITIES REQUESTING
EXEMPTIONS; BY AMENDING SECTION 33-56-70, RELATING TO CONTRACTS WITH
PROFESSIONAL SOLICITORS, SO AS TO LIMIT FILING REQUIREMENTS TO COMMERCIAL
CO-VENTURERS, UNDER CERTAIN CONDITIONS; BY AMENDING SECTION 33-56-90, RELATING
TO REQUIRED DISCLOSURES, SO AS TO REQUIRE ANY ENTITY THAT IS SOLICITING FOR
CHARITABLE ORGANIZATIONS TO DISCLOSE THE LEGAL NAME AND PURPOSE OF THE CHARITY
FOR WHICH THEY ARE SOLICITING; BY AMENDING SECTION 33-56-110, RELATING TO
REGISTRATION OF PROFESSIONAL SOLICITORS, FUND-RAISING COUNSELS, OR COMMERCIAL
CO-VENTURERS, SO AS TO LIMIT REGISTRATION REQUIREMENTS FOR COMMERCIAL
CO-VENTURERS SOLICITING MORE THAN ten THOUSAND DOLLARS IN A SINGLE SOLICITATION
CAMPAIGN; AND BY AMENDING SECTION 33-56-120, RELATING TO MISREPRESENTATIONS, SO
AS TO PROHIBIT COMMERCIAL CO-VENTURERS FROM USING REGISTRATION WITH THE SECRETARY
OF STATE AS AN ENdorsEMENT BY THE STATE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1.A.  Section
33-56-50 of the S.C. Code is amended to read:
    Section
33-56-50.  (A) The following are not
required to file registration statements with the Secretary of State if their
fundraising activities are not conducted by professional solicitors,
professional fundraising counsel, or commercial coventurers:
       (1) an educational institution which
solicits contributions from only its students and their families, alumni,
faculty, friends, and other constituencies, trustees, corporations,
foundations, and individuals who are interested in and supportive of the programs
of the institution;
       (2) a person requesting contributions
for the relief of an individual specified by name at the time of the
solicitation when all of the contributions collected, without deductions of any
kind, are turned over to the named beneficiary for his use, as long as the
person soliciting the contributions is not a named beneficiary;
       (3) a charitable organization which (a) does not intend to solicit, collect, earn, or receive
contributions from the public gross revenue
in excess of twenty-five thousand dollars in during a calendar fiscal year and (b) has received a letter of tax exemption from the
Internal Revenue Service, if all functions, including fundraising activities,
of the organization exempted pursuant to this item are conducted by persons who
are compensated no more than five hundred dollars in a year for their services
and no part of their assets or income inures to the benefit of or is paid to an
officer or a member. If the contributions raised from the
public, whether or not the contributions are actually received by a charitable
organization during any calendar year, are in excess of these amounts gross revenue solicited, collected, earned, or received by the
organization exceeds this amount, within thirty
days after the date the contributions exceed these amounts, then the organization must register with and report to
the Secretary of State as required by this chapter within
thirty days after the date the gross revenue exceeds this amount;
       (4) an organization which solicits
exclusively from its membership, including a utility cooperative;
       (5) a veterans' organization which has
a congressional charter; and
       (6) the State, its political
subdivisions, and an agency or a department of the State which are subject to
the disclosure provisions of the Freedom of Information Act.
    (B) The following are not required to
file registration statements with the Secretary of State regardless of whether
or not their fundraising activities are conducted by professional solicitors,
professional fundraising counsel, or commercial coventurers:
       (1) a public school district located in
the State and any public school teaching pre-K through grade twelve located
within the public school district. For purposes of this chapter, the term
"public school" includes any student organization within the school that does
not maintain separate financial accounts or a separate federal Employer's
Identification Number (EIN) from the school and whose fundraising revenues are
deposited in the school's student activity fund; and
       (2) a charitable organization that does
not intend to solicit,
collect, earn, or receive contributions from the
public gross revenue in excess of seven ten thousand five hundred dollars during a
calendar fiscal year. If the contributions raised from the public, whether or not the
contributions are actually received by a charitable organization during any
calendar year, are in excess of these amounts gross
revenue solicited, collected, earned, or received by the organization exceeds
this amount, then the organization shall
register and report to the Secretary of State as required by this chapter
within thirty days after the date the contributions exceed
these amounts gross revenue exceeds this amount.
    (C) A charitable organization claiming
to be exempt from the registration provisions of this chapter and which
solicits charitable contributions must submit annually to the Secretary of
State, on forms prescribed by the Secretary of State, the name, address, and
purpose of the organization and a statement setting forth the reason for the
claim for exemption. If appropriate, the Secretary of State or his appropriate
division shall issue a letter of exemption that may be exhibited to the public.
A filing fee is not required of an exempt organization.
    (D) A professional solicitor,
professional fundraising counsel, or commercial coventurer conducting
fundraising activities on behalf of an exempt organization must comply with the
registration and filing requirements of this chapter.
B. Section
33-56-70(A), (D) and (E) of the S.C. Code is amended to read:
    Section
33-56-70.  (A) A contract or
agreement between any professional fundraising counsel, professional solicitor,
or commercial co-venturer required to register with the
Secretary of State pursuant to Section 33-56-110 and a charitable
organization must be in writing and filed with the Secretary of State at least
ten days before the professional fundraising counsel, professional solicitor,
or commercial co-venturer begins any solicitation activity or any other activity
contemplated by the contract or agreement in this State. In addition, a
professional solicitor or commercial co-venturer shall attach a completed
Notice of Solicitation form that complies with the requirements of this section
to the contract or agreement filed with the Secretary of State.
    (D) Solicitations or services pursuant
to a contract or agreement between a charitable organization and a professional
solicitor, professional fundraising counsel, or commercial co-venturer may not
begin in this State until the contract or agreement has been filed with the
Secretary of State and until both the charitable organization and the
professional solicitor, professional fundraising counsel, or commercial
co-venturer are registered properly with the
Secretary of State as required pursuant to this chapter.
    (E) Within ninety days after a
solicitation campaign has been completed, or within ninety days after the
anniversary of a solicitation campaign lasting more than one year, a
professional solicitor or commercial co-venturer required
to register with the Secretary of State pursuant to Section 33-56-110 shall
file with the Secretary of State a joint financial report for the campaign,
including gross revenue, an itemization of expenses, and the amount paid to the
charitable organization. This joint financial report must be completed on the
form prescribed by the Secretary of State, signed by both an authorized
official of the professional solicitor or commercial co-venturer and an
authorized official of the charitable organization, and certified to be true.
C. Section
33-56-90 of the S.C. Code is amended to read:
    Section
33-56-90.  (A)
At the initial time of solicitation, a charitable organization, professional
solicitor, commercial co-venturer, or other person engaging in the solicitation
of charitable contributions must disclose the legal name and purpose of the
charitable organization for which it is soliciting.
    (B) At
the initial time of solicitation, a professional solicitor must disclose its
status as a "professional" or "paid" solicitor. The professional solicitor also
must disclose the registered true name of the professional fundraising
organization for which it works and the registered true name, location, and
purpose of the charitable organizations for which it is soliciting. Upon oral
or written request of the solicited party, a professional solicitor also must
disclose the percentage of gross receipts with which the professional solicitor
is compensated including the amount the professional solicitor must be
reimbursed as payment for fundraising costs. The professional solicitor also
must disclose the guaranteed minimum percentage of gross receipts to be
remitted or retained by the charitable organization excluding the amount which
the charitable organization must pay for fundraising costs.
    (B)(C) Upon oral or written request by the solicited party,
the professional solicitor must deliver to the solicited party within fifteen
business days of the request a:
       (1) financial statement of the
charitable organization disclosing assets, liabilities, fund balances, revenue,
and expenses for the preceding fiscal year. This financial statement must be
the most recently submitted annual financial report pursuant to Section
33-56-60; and
       (2) copy of the professional solicitor's
or charitable organization's current registration certification from the
Secretary of State.
    (C)(D) A professional solicitor that fails to comply with the
provisions of this section is liable for an administrative fine not to exceed
two thousand dollars for each separate violation.
    (D)(E) An offense committed in violation of this section is
considered to have been committed at the place where the solicitation either
was initiated or was received.
D. Section
33-56-110(A) of the S.C. Code is amended to read:
    (A) A person may not act as a professional solicitor, or professional fundraising
counsel, or commercial co-venturer for a charitable
organization subject to the provisions of this chapter without first having
registered with the Secretary of State. A person may not
act as a commercial co-venturer for a charitable organization subject to the
provision of this chapter without first registering with the Secretary of
State, if the person intends to solicit, collect, earn, or receive charitable
contributions in excess of ten thousand  dollars during a solicitation
campaign. Registration includes filing of a complete application and
filing fee. An application for registration must be in writing under oath or
affirmation in the form prescribed by the Secretary of State and accompanied by
an annual fee of fifty dollars.
E. Section
33-56-110(J) of the S.C. Code is amended by adding:
    (J) If a commercial co-venturer intending to be exempt from
registration with the Secretary of State collects, earns or receives charitable
contributions in excess of ten thousand dollars during a solicitation campaign,
then the commercial co-venturer shall register and report to the Secretary of
State as required by this chapter within thirty days after the date the
contributions exceed this amount.
F. Section
33-56-120(B) of the S.C. Code is amended to read:
    (B) A charitable organization, professional fundraising counsel, or professional solicitor, or
commercial co-venturer shall not use or exploit the fact of registration
with the Secretary of State so as to lead the
public to believe that the registration in any way constitutes an endorsement
or approval by the State. However, the use of the following statement is not
considered a prohibited exploitation:  "Registered with the Secretary of State
as required by law". Registration does not imply endorsement of a public
solicitation for contributions.
SECTION
2.  This act takes effect upon approval by the Governor.
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This web page was last updated on April 23, 2025 at 02:10 PM