WI Stat § 202.12 (2021)
2021 Wisconsin Statutes & Annotations|Chapter 202 - Regulation of professional employer organizations and the solicitation of funds for a charitable purpose.|202.12 - Regulation of charitable organizations.

202.12  Regulation of charitable organizations. (1) Registration requirement.  (a) Except as provided in sub. (5), no charitable organization may solicit in this state or have contributions solicited in this state on its behalf unless it is registered with the department under this subsection.(b) Applicants for a charitable organization registration shall apply to the department, in the form and manner prescribed by the department. Each application that is not a renewal application shall be accompanied by any information required by the department, including all of the following: 1m. The registration fee determined by the department under s. 202.041.2g. A reviewed financial statement for the most recently completed fiscal year of the charitable organization, if the charitable organization received contributions in excess of $300,000, subject to adjustment under sub. (8), but not more than $500,000, subject to adjustment under sub. (8), during its most recently completed fiscal year. The statement shall be prepared in accordance with generally accepted accounting principles and include a review of the financial statement by an independent certified public accountant. 2r. An audited financial statement for the most recently completed fiscal year of the charitable organization, if the charitable organization received contributions in excess of $500,000, subject to adjustment under sub. (8), during its most recently completed fiscal year. The statement shall be prepared in accordance with generally accepted accounting principles and include the opinion of an independent certified public accountant on the financial statement. (e) All charitable organization registrations expire on July 31 of each year.  (3)  Annual report. (a) A charitable organization registered under sub. (1) shall file with the department an annual report for the charitable organization's most recently completed fiscal year. The department shall prescribe the form of the report and shall prescribe standards for its completion. The annual report shall be filed within 12 months after the end of that fiscal year.(b) In addition to the annual report required under par. (a), if a charitable organization received contributions in excess of $500,000, subject to adjustment under sub. (8), during its most recently completed fiscal year, the charitable organization shall file with the department an audited financial statement for the charitable organization's most recently completed fiscal year, prepared in accordance with generally accepted accounting principles, and the opinion of an independent certified public accountant on the financial statement. The audited financial statement shall be filed within 12 months after the end of that fiscal year. (bm) In addition to the annual report required under par. (a), if a charitable organization received contributions in excess of $300,000, subject to adjustment under sub. (8), but not more than $500,000, subject to adjustment under sub. (8), during its most recently completed fiscal year, the charitable organization shall file with the department a financial statement for the charitable organization's most recently completed fiscal year, prepared in accordance with generally accepted accounting principles, and a review of the financial statement by an independent certified public accountant. The financial statement shall be filed within 12 months after the end of that fiscal year. (d) A charitable organization may apply to the department for a waiver of the requirement set forth in par. (b) or (bm). The waiver application shall be in writing, be received by the department within 90 days after the charitable organization's fiscal year-end, and include documentation to support all of the following:1. The charitable organization's contributions were, during each of the past 3 fiscal years, less than $100,000, subject to adjustment under sub. (8).2. During the fiscal year for which the waiver is being requested, the charitable organization received one or more contributions from one contributor that exceeded $200,000, subject to adjustment under sub. (8), if the charitable organization is applying for a waiver of the requirement set forth in par. (bm), or exceeded $400,000, subject to adjustment under sub. (8), if the charitable organization is applying for a waiver of the requirement set forth in par. (b).  (5)  Exemptions from registration.  (a) The following are not required to register under sub. (1):1. A person that is exempt from filing a federal annual information return under section 6033 (a) (3) (A) (i) and (iii) and (C) (i) of the Internal Revenue Code.2. A candidate for national, state, or local office or a political party or other committee or group required to file financial information with the federal elections commission or a filing officer under s. 11.0102 (1).3. Except as provided in par. (b), a charitable organization that does not intend to raise or receive contributions in excess of $25,000, subject to adjustment under sub. (8), during a fiscal year, if all of its functions, including solicitation, are performed by persons who are unpaid for their services and if no part of its assets or income inures to the benefit of, or is paid to, any officer or member of the charitable organization. 3m. A fraternal, civic, benevolent, patriotic, or social organization that solicits contributions solely from its membership.4. A veterans organization incorporated under ch. 188 or chartered under federal law or the service foundation of such an organization recognized in the bylaws of the organization.5. A nonprofit, postsecondary educational institution accredited by a regional accrediting agency or association approved under 20 USC 1099b, or an educational institution and its authorized charitable foundations that solicit contributions only from its students and their families, alumni, faculty, trustees, corporations, foundations, and patients.6. A person soliciting contributions for the relief of a named individual if all contributions, without any deductions, are given to the named individual.7. A state agency, as defined in s. 20.001 (1), or a local governmental unit, as defined in s. 605.01 (1).8. A private school, as defined in s. 118.165.9. Any corporation established by an act of the United States Congress that is required by federal law to submit to Congress annual reports, fully audited by the United States Department of Defense, of its activities including itemized accounts of all receipts and expenditures. (b) If a charitable organization would otherwise be exempt under par. (a) 3., but it raises or receives more than $25,000, subject to adjustment under sub. (8), in contributions, it shall, within 30 days after the date on which its contributions exceed this amount, register as required under sub. (1).  (6)  Reporting tax exemption or organizational changes. If a charitable organization registered under sub. (1) receives any federal or state tax exemption determination letter or adopts any amendment to its organizational instrument or bylaws after it is registered under sub. (1), within 30 days after receipt of the letter or adoption of the amendment, the charitable organization shall file with the department a copy of the letter or amendment. (6m)  Unpaid solicitor disclosure requirements.  (a) Prior to orally requesting a contribution or contemporaneously with a written request for a contribution, an unpaid solicitor shall clearly and conspicuously disclose all of the following:1. The name of the charitable organization, as it appears on file with the department, on whose behalf the solicitation is being made.2. A clear description of the primary charitable purpose for which the solicitation is made.3. That the contribution is not tax-deductible, if this disclosure is applicable.(b) In addition to the information required by par. (a), any written solicitation, and any confirmation, receipt, or reminder of a pledged amount, shall conspicuously state the following verbatim: “A financial statement of the charitable organization disclosing assets, liabilities, fund balances, revenue, and expenses for the preceding fiscal year will be provided to any person upon request."(c) The financial statement under par. (b) shall, at a minimum, divide expenses into categories of management and general, program services, and fund-raising. If the charitable organization is required to file financial information with its annual report under sub. (3), the financial statement under par. (b) shall be consistent with the financial information reported in that annual report.(d) The disclosures required by this subsection are required unless the unpaid solicitor is soliciting a contribution for a charitable organization that is not required to be registered under sub. (1) or that has obtained a disclosure exemption under par. (e).(e) A charitable organization that operates solely within one community and that received less than $50,000 in contributions during its most recently completed fiscal year may apply to the department for an exemption from the disclosure requirements under this subsection. The department shall prescribe the forms and procedures for use in applying for an exemption. (7)  Relationship with fund-raising counsel and professional fund-raisers.  (a) A charitable organization that is required to be registered under sub. (1), and that permits a fund-raising counsel to perform any material services for the charitable organization, shall do all of the following:1. Before permitting the fund-raising counsel to perform any material services for the charitable organization, ensure the fund-raising counsel is registered under s. 202.13 (1) or is not required to be registered.2. Before permitting the fund-raising counsel to perform any material services for the charitable organization, contract in writing with the fund-raising counsel, unless the fund-raising counsel is exempt under s. 202.13 (6) from contracting in writing with the charitable organization. Requirements for the contract are specified in s. 202.13 (3).3. Retain, for at least 3 years, the accounting the fund-raising counsel is required to provide to the charitable organization under s. 202.13 (4) (a) and make this accounting available to the department upon request.4. Maintain an account at a financial institution within which the fund-raising counsel shall deposit, in its entirety, within 5 days after its receipt, a contribution of money received by the fund-raising counsel on behalf of the charitable organization. The account shall be in the name of the charitable organization, and the charitable organization shall have sole control of all withdrawals from the account.(b) A charitable organization that is required to be registered under sub. (1), and that permits a professional fund-raiser to perform any material services for the charitable organization, shall do all of the following:1. Before permitting the professional fund-raiser to perform any material services for the charitable organization, ensure the professional fund-raiser is registered under s. 202.14 (1) or is not required to be registered.2. Before permitting the professional fund-raiser to perform any material services for the charitable organization, contract in writing with the professional fund-raiser. Requirements for the contract are specified in s. 202.14 (4).3. Before permitting the professional fund-raiser to perform any material services for the charitable organization, file with the department a written confirmation that any solicitation notice filed with the department under s. 202.14 (3), and any material accompanying that notice, are true and correct to the best of the charitable organization's knowledge.4. Retain, for at least 3 years, the accounting the professional fund-raiser is required to provide to the charitable organization under s. 202.14 (7), and make this accounting available to the department upon request.5. Maintain an account at a financial institution within which the professional fund-raiser shall deposit, in its entirety, within 5 days after its receipt, a contribution of money received by the professional fund-raiser on behalf of the charitable organization. The account shall be in the name of the charitable organization, and the charitable organization shall have sole control of all withdrawals from the account. (8)  Contribution limits. (a) Subject to par. (b), the department may adjust the threshold amounts in subs. (1) (b) 2g. and 2r., (3) (b), (bm), and (d) and (5) (a) 3. and (b) to account for inflation.(b) Before the department makes any adjustment under par. (a), the department shall send a notification of the proposed adjustment to the cochairpersons of the joint committee for review of administrative rules. If the cochairpersons of the committee do not notify the secretary of financial institutions within 14 working days after the date of the department's notification that the committee has scheduled a meeting for the purpose of reviewing the proposed adjustment, the adjustment may be made as proposed. If, within 14 working days after the date of the department's notification, the cochairpersons of the committee notify the secretary of financial institutions that the committee has scheduled a meeting for the purpose of reviewing the proposed adjustment, the adjustment may be made only upon approval of the committee.(c) The department shall notify registrants of any adjustment under this subsection by posting the adjustment on the department's Internet site.History:  1991 a. 278; 1995 a. 27, 277; 2007 a. 20, 213; 2013 a. 20 s. 2209; Stats 2013 s. 202.12; 2015 a. 117; 2015 a. 163 ss. 53 to 78, 106 to 111, 116.