I
103D CONGRESS
1ST SESSION
H. R. 733
To amend title 39, United States Code, to require the disclosure of certain
information in connection with the solicitation of charitable contributions
by mail, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 2, 1993
Mr. OWENS introduced the following bill; which was referred to the Committee
on Post Office and Civil Service
A BILL
To amend title 39, United States Code, to require the disclo-
sure of certain information in connection with the solici-
tation of charitable contributions by mail, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Charitable Solicitation
Disclosure Act of 1993’’.
SEC. 2. DISCLOSURE REQUIREMENT.
(a) REQUIREMENT.—Chapter 30 of title 39, United
States Code, is amended by adding at the end the follow-
ing:
‘‘§ 3015. Soliciting charitable contributions by mail
‘‘(a) Any charitable organization which solicits, in
any manner or through any means, the remittance of a
contribution by mail, shall include with such solicitation
the following information:
‘‘(1) The legal name and the principal business
address of the charitable organization making the
solicitation.
‘‘(2) Whether the organization is exempt from
taxation under section 501(a) of the Internal Reve-
nue Code of 1986, specifying whether or not the
contributions solicited will qualify as charitable con-
tributions under section 170(c) of such Code.
‘‘(3) The purpose of the solicitation and the in-
tended use of the contribution being solicited, speci-
fying whether the program or activities for which the
contribution will be used are in existence or planned.
‘‘(4) The obligation of the charitable organiza-
tion to furnish information in accordance with sub-
section (c).
‘‘(b) The information required under subsection (a)
to be included with any solicitation for contributions by
mail shall—
‘‘(1) in the case of a solicitation made in writ-
ing—
‘‘(A) be presented in language which is
readily understandable by persons receiving the
solicitation;
‘‘(B) be located in a conspicuous place on
the solicitation; and
‘‘(C) appear in conspicuous and legible
type in contrast by typography, layout, or color
with other printed matter on the solicitation;
‘‘(2) in the case of a solicitation made through
audio communication, be clearly audible and in lan-
guage readily understandable by persons to whom
the solicitation is directed; and
‘‘(3) in the case of a solicitation made through
visual communication—
‘‘(A) appear in lettering of sufficient size
to be easily read by the viewer;
‘‘(B) be shown against a background which
does not impair the legibility of the communica-
tion; and
‘‘(C) remain in view for a period sufficient
to enable the viewer to read the communication.
‘‘(c) Any charitable organization which makes a solic-
itation of contributions which is subject to subsection (a)
shall, no later than 30 days after the receipt of a request
from any person receiving such solicitation, furnish to
such person a financial report for the most recent com-
plete fiscal year of the organization, prepared in accord-
ance with generally accepted accounting principles, which
includes—
‘‘(1) a statement which clearly sets forth the
gross income and revenues received by the organiza-
tion, the total expenses for program services, fund
raising activities, management and general activities,
and any other disbursements made during the fiscal
year;
‘‘(2) a statement of functional expenses during
the fiscal year which discloses the nature and
amount of these expenses for its program services,
fund raising activities, and management and general
activities;
‘‘(3) a balance sheet which discloses the organi-
zation’s assets, liabilities, and net worth at the be-
ginning and at the close of the fiscal year;
‘‘(4) a statement which relates each of the ac-
tivities comprising the organization’s program serv-
ices in both qualitative and quantitative form and
sets forth the amounts expended for each such activ-
ity during the fiscal year; and
‘‘(5) in the case of an organization which re-
ceived total revenue and support in excess of
$50,000 during the fiscal year, the opinion of an
independent certified or licensed public accountant,
based on an examination made in accordance with
generally accepted auditing standards, that the
statements in the financial report present fairly the
financial position of the organization and the results
of its operations during the fiscal year.
‘‘(d) Any charitable organization which makes a solic-
itation of contributions which is subject to subsection (a)
shall, upon request by the Postal Service, furnish to the
Postal Service in accordance with its request such audit
reports, accounts, or other information as the Postal Serv-
ice may require to establish or verify such organization’s
compliance with this section.
‘‘(e) Subsection (a) shall not apply to—
‘‘(1) any bona fide membership organization
with respect to any solicitation for contributions
made by such organization exclusively to the mem-
bers of such organization;
‘‘(2) any school, college, or university with re-
spect to any solicitation for contributions made by
such organization exclusively to its students, alumni,
faculty, members of governing boards and appointed
committees, or a member of the family of any such
individuals;
‘‘(3) any charitable organization which is au-
thorized by, and exclusively makes expenditures to
or for the benefit of, a school, college, or university
with respect to any solicitation for contributions
made by such organization exclusively to individuals
referred to in paragraph (2);
‘‘(4) any solicitation of contributions made for
the relief, and with the written consent, of any indi-
vidual specified by name at the time of the solicita-
tion, if all of the contributions collected without any
deductions whatsoever are turned over to the indi-
vidual;
‘‘(5) any solicitation of contributions made by a
charitable organization which received not more than
$10,000 in total revenue and support during the
previous fiscal year and all of whose fund raising
‘‘(3) the term ‘program services’ includes any
activity carried on by a charitable organization in
the performance of its purposes;
‘‘(4) the term ‘fund raising activities’ includes
any activity that constitutes or is an integral and in-
separable part of an appeal for contributions;
‘‘(5) the term ‘management and general activi-
ties’ includes any activity which relates to the overall
direction of the organization, but not its program
services or fund raising activities; and
‘‘(6) the term ‘membership’ does not include
any case in which an organization confers a mem-
bership on any person solely as a consideration for
making a contribution.’’.
(b) ISSUANCE OF ORDER BY POSTAL SERVICE.—Sec-
tion 3005(a) of title 39, United States Code, is amended
by inserting immediately after ‘‘means of false representa-
tions’’ the following: ‘‘or for a charitable purpose without
complying with section 3012’’.
SEC. 3. CONFORMING AMENDMENTS.
The table of sections at the beginning of chapter 30
of title 39, United States Code, is amended by inserting
after the item relating to section 3014 the following:
‘‘3015. Soliciting charitable contributions by mail.’’.
SEC. 4. EFFECTIVE DATE.
This Act shall take effect one year after the date of
the enactment of this Act.
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