Louisiana Administrative Code › Title 16 - COMMUNITY AFFAIRS › Part III - Consumer Protection › Chapter 5 - Unfair and Deceptive Trade Practices › Section III-515 - Charitable Solicitations

Current through Register Vol. 50, No. 6, June 20, 2024
A. Definitions. For the purpose of this rule the following definitions shall apply.
Charitable Organization
-a group which is or holds itself out to be benevolent, civic, recreational, educational, voluntary health, social service, philanthropic, fraternal, humane, patriotic, religious, or eleemosynary organization, or any person who solicits or obtains contributions solicited from the public for charitable purposes. A chapter, branch, area office, or similar affiliate or any person soliciting contributions within the state for a charitable organization which has its principal place of business outside the state, shall be a charitable organization for the purposes of this rule.
Contributions
-the promise or grant of any money or property of any kind or value.
Person
-any individual, organization, trust, foundation, group, association, partnership, corporation, society, or any combination of them.
Professional Solicitor
-any person who, for a financial consideration, solicits contributions for, or on behalf of, a charitable organization, whether such solicitation is performed personally or through his agents, servants, or employees or through agents, servants, or employees specially employed by or for a charitable organization, who are engaged in the solicitation of contributions under the direction of such person; or a person who plans, conducts, manages, or advises a charitable organization in connection with the solicitation of contributions . A salaried officer or salaried employee of a charitable organization maintaining a permanent establishment within the state shall not be deemed to be a professional solicitor. However, any salaried officer or salaried employee of a charitable organization that engages in the solicitation of contributions in any manner for more than one charitable organization, if a fee is charged for services to the organization other than the one that he is employed by, shall be deemed a professional solicitor
.
Religious Institutions
-for the purposes of this rule include ecclesiastical or denominational organizations, churches, or established physical places for worship in this state at which nonprofit religious services and activities are regularly conducted and carried on and shall also include those bona fide religious groups which do not maintain specific places of worship.
Religious institutions
also include such separate groups or corporations which from an integral part of those institutions which are exempt from federal income tax as exempt organizations under the provisions of Section  501(c)(3) of the Internal Revenue Code of 1954, or of a corresponding section of any subsequently enacted Federal Revenue Act, and which are not primarily supported by funds solicited outside its own membership or congregation.
Religious institutions
for purposes of this rule also include such institutions soliciting contributions for construction and maintenance of a house of worship or clergyman's residence.
B. It shall be an unfair and deceptive act or practice for any person or charitable organization utilizing a professional solicitor or solicitors to do any of the following:
1. fail to annually register and submit a $25 registration fee to the Consumer Protection Section of the Louisiana Department of Justice, at least 10 days prior to soliciting for contributions. The following information shall be included in the registration materials:
a. the name of the charitable organization and the purpose for which it was organized;
b. the principal address of the charitable organization and the address of any offices in this state. If the organization does not maintain an office, the name and address of the person having custody of its financial records;
c. the estimated amount of funds to be raised by professional solicitors and all costs and expenses incidental thereto including all publicity costs, all overhead costs, and all salaries or fees of professional solicitors to be paid out of solicited funds;
d. whether or not the organization or any professional solicitor associated with the organization has ever been enjoined by any court from soliciting contributions ;
e. the purpose or purposes for which the contributions to be solicited shall be used;
f. the name or names under which it intends to solicit contributions ;
g. the name or names of the individuals or officers of the organization who shall be responsible for the disbursement of any contributions ;
h. the names and addresses of all professional solicitors to be used in the solicitation drive and a copy of the contract between the charitable organization and professional solicitor ;
i. whether or not the charitable organization is incorporated and, if so, the charitable organization must submit a copy of their Articles of Incorporation to the Consumer Protection Section of the Louisiana Department of Justice;
j. whether or not the charitable organization has a Federal Income Tax exemption under Section 501 of the Internal Revenue Code and, if so, the charitable organization must submit a copy of its IRS 501(c)(3) tax exempt determination letter to the Consumer Protection Section of the Louisiana Department of Justice;
k. whether or not the charitable organization has a tax exempt status in the state of Louisiana and written proof of such status;