Document: 444 U.S. 620 100 S.Ct. 826 63 L.Ed.2d 73 VILLAGE OF SCHAUMBURG, Petitioner,v.CITIZENS FOR A BETTER ENVIRONMENT et al. No. 78-1335. Argued Oct. 30, 1979. Decided Feb. 20, 1980. Rehearing Denied April 14, See 445 972, 1668. Syllabus Petitioner village has an ordinance prohibiting door-to-door or on-street solicitation of contributions by charitable organizations that do not use at least 75 percent their receipts for "charitable purposes," such purposes being defined to exclude expenses, salaries, overhead, and other administrative expenses. After petitioner denied respondent Citizens a Better Environment (CBE) (a nonprofit environmental-protection organization) permit because it could meet the ordinance's 75-percent requirement, CBE sued in Federal District Court, alleging requirement violated First Fourteenth Amendments, seeking declaratory injunctive relief. The Court granted summary judgment CBE. Appeals affirmed, rejecting petitioner's argument was inappropriate there unresolved factual dispute as true character CBE's organization, holding since challenged facial validity on Amendment grounds facts internal affairs operations were immaterial therefore obstacle granting judgment. court concluded even if might be valid applied types solicitation, unreasonable its face barred advocacy-oriented where would used reasonable salaries those who gathered disseminated information relevant organization's purpose. Held : question is unconstitutionally overbroad violation Amendments. Pp. 628-639. (a) Charitable appeals funds, street door door, involve variety speech interests—communication dissemination propagation views ideas, advocacy causes—that are within Amendment's protection. While soliciting financial support subject regulation, regulation must give due regard reality characteristically intertwined with informative perhaps persuasive particular causes economic, political, social issues, without flow likely cease. Moreover, does more than inform private economic decisions primarily concerned providing about characteristics costs goods services, dealt purely commercial speech. 628-632. (b) free inquire whether overbroad, law involved no characteristics, thus properly proceeded rule merits entitled invalidity purported prohibit canvassing substantial category charities which limitation consistently demonstration itself one these organizations. 633-635. (c) direct protected activity cannot sustained unless serves sufficiently strong, subordinating interest protect. Here, proffered justifications intimately related governmental interests preventing fraud protecting public safety residential privacy inadequate, served measures less destructive interests. 635-639. 590 F.2d 220, affirmed. Jack M. Siegel, Chicago, Ill., petitioner. Milton I. Shadur, respondent. Adam Yarmolinsky, Washington, D.C., Coalition National Voluntary Organizations al., amici curiae, special leave Court. Mr. Justice WHITE delivered opinion 1 issue this case under Amendments municipal held unconstitutional. We affirm 2 * Village Schaumburg (Village) suburban community located 25 miles northwest Ill. On March 12, 1974, adopted "An Ordinance Regulating Soliciting Organizations," codified Art. III Chapter 22 Code (Code), regulates activities "peddlers solicitors," § 22-1 seq. (1975).1 Article III2 provides "[e]very solicits intends solicit from persons streets ways, shall prior apply permit." 22-20.3 Solicitation prohibited punishable fine up $500 each offense. 1052, §§ 1, 8 (1974). 3 Section 22-20(g), focus constitutional challenge case, requires applications, among things, contain "[s]atisfactory proof seventy-five per cent proceeds solicitations will directly purpose organization."4 In determining organization satisfies 4 "the following items deemed wit: 5 "(1) Salaries commissions paid solicitors; 6 "(2) Administrative expenses including, but limited to, attorneys' fees, rents, telephone, advertising persons, except contribution incurred overhead items." 22-20(g). 7 Respondent Illinois not-for-profit corporation organized promoting protection environment." registered Attorney General's Trust Division pursuant law,5 been afforded tax-exempt status United States Internal Revenue Service, gifts deductible federal income tax purposes. requested permission Village, demonstrate purposes" required 22-20(g) Code. then Northern Illinois, charging Declaratory relief sought. amended complaint, alleged "[i]t purpose, others, protecting, maintaining, enhancing quality complaint also alleged: 9 "That incident employs 'canvassers' engaged Chicago metropolitan area, endeavoring distribute literature environmental topics answer questions nature when posed; financially programs; receive grievances complaints regarding may afford assistance evaluation redress complaints." 10 Village's averred foregoing allegations, true, material issues acknowledged employed "canvassers" "CBE devoted raising funds benefit salary employees negligible compared primary objective funds." "that 60% collected [by CBE] have spent benefits any purposes."6 11 Real Cause Clean-Air Fight?" Suburban Trib, Nov. 10. 1976, p. 1. Based reports file office, article stated two-thirds fiscal year 1975 employee health benefits. noted 1971 General had failing register solicitors making false claims working " 'increase size attorney general's staff consequently effectiveness fight against pollution.' suit settled consent decree agreeing change some making. chief Trusts office convinced commitment his division continue monitor carefully group's activities. 12 moved filed affidavits describing outlined complaint. One canvass single most important source funds" second affidavit offered 23.3% fundraising 21.5% administration, 1976 figures 16.5%, respectively. opposed motion counteraffidavits taking representations affidavits. 13 awarded recognized although government regulate order protect fraud, . [a]ny action impinging upon freedom expression discussion minimal, articulated, interest." "a form censorship" declared void face, enforcement enjoined, ordered 14 Seventh Circuit 220 (1978). rejected fact disputed. Because grounds, "any judgment." Id., 223. Like legitimate regulating residents disruption privacy, "must done 'with narrow specificity' affected. 223-224. "where made clear gather disseminate purpose." 226. distinguished Foundation v. Fort Worth, 415 41 (CA5 1969), cert. denied, 396 1040, 90 688, 24 684 (1970), upheld authorizing denial permits excessive costs, ground Worth excess 20 gross receipts, nevertheless permitted demonstrated reasonableness obtain permits. 15 certiorari, 441 922, 99 2029, 60 395 (1979), review Appeals' determination violates II 16 It urged should deals only charity propagate long refrains money. But represents far too view our cases religious 17 Schneider State, 308 147, 146, 84 L.Ed. 155 (1939), canvasser society, passed out booklets asked contributions, arrested convicted canvassing, soliciting, distribution circulars house permit, issuance rested much discretion officials. state courts construed aimed mainly house-to-house solicitation. This Lovell Griffin, 303 444, 58 666, 82 949 (1938), invalidated criminalizing handbill time place permit. canvasser's conduct "amounted money permit" Schneider, supra, 159, S.Ct., 150, thought fraudulent solicitations, conviction sustained. disagreed, noting canvassers "one wishes present questions," U.S., 163, 152, city not, name appeals, communication discretionary requirement. pointed "who profit," ibid., reserved "commercial canvassing" validly subjected controls. 165, 152. 18 Cantwell Connecticut, 310 296, 900, 1213 (1940), statute forbidding anything value religious, charitable, philanthropic obtaining official approval. Three members group selling books, distributing pamphlets, donations. Their convictions affirmed they attempt fraud. set aside convictions, "general interest, test unreasonably obstruct delay collection open objection," id., 305, 904, "condition aid perpetuation systems license, grant rests exercise authority what cause," 307, 904-905, considered invalid restraint religion. Although turned clause, subsequently understood implied involves guarantee Virginia Pharmacy Board Consumer Council, 425 748, 761, 96 1817, 1825, 48 346 (1976); Bates State Bar Arizona, 433 350, 363, 97 2691, 2698, 56 810 (1977). 19 Valentine Chrestensen, 316 52, 62 920, 86 1262 (1942), arrest advertisement distribution. Addressing left while municipalities unduly restrict right communicating streets, "Constitution imposes respects advertising." 54, 921. reasoned unlike "communicating disseminating opinion" implicated solicitor's pursuing gainful occupation." Ibid. Term Jamison Texas, 318 413, 669, 87 869 (1943), dissent, agreement author Chrestensen opinion, leaflets banned "prohibit handbills pursuit clearly merely invite purchase books improved understanding religion seek lawful fashion promote purposes." 417, 672. reaffirmed identical well ruling prevent obstructing delaying collection." also, Largent 418, 667, 873 (1943). 21 course striking down sale literature, majority Murdock Pennsylvania, 319 105, 870, 1292 reiterated transformed into unprotected funds. Recognizing drawing line between ventures distributions written difficult task, went hold itinerant evangelists spreading doctrine enterprise beyond Amendment. same day, forbade handbills, circulars, advertisements. None general prohibition sufficient; individual resident warn off sufficient citizen. Martin Struthers, 141, 862, 1313 facts, did literature. 23 Thomas Collins, 323 516, 65 315, 89 430 (1945), requiring before membership labor organization. so required. "espousal cause higher espousal cause." 538, 326. notion dismissed urging rights assembly claimed 'engaged business activities' leads exercising receives compensation doing so." 531, 323. Concededly, "collection ruled done, restriction applied, manner intrude assembly." 540-541, 327. 1951, Breard Alexandria, 341 622, 71 95 1233, decided. That criminal enter premises invitation sell goods, wares, merchandise. magazine subscriptions. introduced feature," 642, 932, householder's outweighed publisher magazines uninvited entry property. Court's however, indicate activities, nor similar materials. overruled. Hynes Mayor Oradell, 610, 1755, 243 (1976), identification political cases, citizen crime undue annoyance, controls drawn 'narrow specificity.' 620, 1760. unacceptably vague. 26 Prior authorities, therefore, establish information, undoubtedly latter undertaken Canvassers contexts necessarily Furthermore, speech.7 27 us, then, neighborhoods protections are. "[O]ur though pay contribute money, New York Times Co. Sullivan, [376 254, 710, 686 (1964)]." 2699. 28 exercised power 616, 1758. we first deal claim improper concerning interests, canvassers, percentage controverted, findings respect activities; expressly proper resolution case. claims, chance prove spends resources appropriately existing profit rather 29 agree organizations.8 Given controversy, litigant whose own showing substantially abridges parties court. Grayned City Rockford, 408 104, 114-121, 92 2294, 2302-2306, 33 222 (1972); Chaplinsky Hampshire, 315 568, 766, 1031 (1942); 162-165, 151-152; 451, 668; Thornhill Alabama, 88, 97, 736, 741, 1093 (1940). Broadrick Oklahoma, 413 601, 612-616, 93 2908, 2915-2918, 37 830 (1973), Bigelow Virginia, 421 809, 815-817, 2222, 2229-2230, 44 600 (1975). contexts, inclined disregard normal permitting proscription applies others possibility associative inhibited overly broad reach statute. 30 overbreadth inapplicable certain 381, 2707, indicated, concern us here. basis, proceeding proper. As motion. IV 31 indicating enforceable "traditional organizations" represent themselves mere conduits contributions," F.2d, 225, 226, identified class constitutionally applied. These provide services poor, needy worthy objects charity, advocate positions matters concern. "necessarily combine" "functions dissemination, discussion, issues." 225. process necessary arrive announce suitable organizations' preferred them. kind, spend budgets completely Village.9 unjustified infringement 32 inadequate survive scrutiny urges "in annoyance." indeed substantial, peripherally promoted 34 Prevention principal justification one-quarter submission using fundraising, commercial, fraudulent. But, recognized, research, advocacy, education carry functions support. Amendment, label groups "fraudulent" bar them house.10 Nor lump cloak profitmaking refuse employ precise separate kind other. serve narrowly regulations designed unnecessarily interfering freedoms. 1760; Bank Boston Bellotti, 435 765, 786, 98 1407, 1421 "Broad prophylactic rules area suspect. Precision touchstone .." NAACP Button, 371 415, 438, 83 328, 340, 405 (1963) (citations omitted). 35 can better intrusive Fraudulent misrepresentations penal laws punish directly. 164, 605 152; 306, 904; 771, 1830.11 Efforts disclosure finances assist informing ways employed.12 Such help make informed, leaving choice decision large amounts 36 fail perceive relationship privacy. There indication devoting threat organizations.13 Other provisions here, provision unlawful felons solicitors, 22-23, bear relation safety; not. indirect ways. concedes, householders equally disturbed behalf satisfying protects reducing total number directed unique residing homes "public ways." 22-20. ordinance, homeowners property posting signs reading "No Solicitors Peddlers Invited," 22-24, suggest availability effective Rowan Post Office Dept., 397 728, 1484, 736 (1970); 148, 865. 38 plainly insufficiently asserted justify interference "Frauds denounced offenses punished law. Trespasses similarly forbidden. If said means efficient convenient [deciding advance] house, impart considerations sort empower municipality abridge press." 39 find reason disagree conclusion overbroad. Its 40 ordered. REHNQUIST, dissenting. 42 holds unconstitutional door. read isolation, today's defensible. When combined earlier pronouncements subject, relegates local interested role Sisyphus. 43 recites litany language years various restrictions concluding Amendment." Ante, 632. I proposition self-evident now swept banal ambit (1976). having arrived basis effectively departs reasoning discussing limits Schaumburg's limitations so-called "charitable" go village. neglect precedents entirely understandable, covering factors instant plurality primarily, exclusively, amount vested authorities deny vague non-existent criteria. 163-164, 151-152, (1939); 305-306, (1940); 422, (1943); 620-621, 1760-1761, example, Jehovah's Witnesses "[i]n end, [the applicant's] liberty communicate town depends officer's discretion." control leaves virtually hands licensing authority. 45 Another requests contributions. gone invitations meeting despite "handbills, advertisements" "limits knowledge," "serve forbidden Constitution, naked ideas." 144, 46 found distinction apparent Martin' emphasis knowledge, period. 1233 (1951), "solicitors, peddlers, hawkers, merchants transient vendors merchandise" entering permission. going subscriptions magazines. Despite invocation both press, feature" transactions informational overtone. 932. "was services," "not inconsistent reached case." 643, 933. 47 Shunning guidance sets define new regulation. According "organizations concern." 635. another portion redefines immunity extending all "primarily support." 636-637. result—or perhaps, accurately, results seem unwarranted three reasons. First, legal standpoint, invites draw already erased. Today's strongly, believe correctly, implies result here otherwise "information ante, 632, "advocate Four ago, relied supposed bankruptcy very overturning pharmacists. supra. Pharmacy, messages great element[,] [t]here few element added." 764, 1827. led conclude "no publicly 'interesting' 'important' opposite ever drawn." To extent elusive venture legislators, context 49 Second, practical gives absolutely how identify "whose concern," exempt III. Earlier guideline: rely criteria, reliance significant degree run afoul Cantwell, Largent, Hynes.1 "more separate" counterparts, 637, remember bodies poorly equipped investigate audit status. Stripped discretion, able resort line-drawing capable easy reliable application necessity exhaustive case-by-case investigation applicant.2 50 Finally, overestimates value, sense, simultaneously underestimates reasons why board necessary. Oradel, referred approval Professor Zechariah Chafee's observation "[o]f methods unpopular [house-to-house canvassing] seems extensive protection." 619, 1760, quoting Z. Chafee, Free Speech 406 (1954). heightened see, e. g., beliefs, simple request lies core heretofore interpreted. community's ensuring collecting criteria indisputably valid. Regardless labels noncharitable "fraudulent," nothing Constitution collective insulating panhandlers, profiteers, peddlers. 51 central weakness decision, believe, failure recognize, let alone confront, two case: system definition confided? uphold strict tastes, affects little "censor" speech, rationally desire bestow largess truly "charitable." dissent. "for peddlers solicitors" license. For II, who, appointment, offer take orders future delivery services. 22-6. 22-7 person "engage[d] peddler solicitor village" Licenses obtained collector payment annual fee ranging $10 $25. License applications including merchandise offered, address applicant, applicant's employer, applicant misdemeanor felony. 22-8. license anyone good reputation." 22-9. hours a. m. m., Monday through Saturday. 22-13. Cheating, deception, misrepresentation 22-12. depart "immediately peacefully" home displaying sign, near main entrance. 22-15 22-16. Persons violating fined 22-18. manager revoke ceases possess character. 22-11. includes 22-19 22-24 defines organization" "[a]ny benevolent, philanthropic, patriotic, not-for-profit, eleemosynary group, association corporation, purporting such, collects purpose" "contribution" "[t]he promise payments fair market literature." Applications include information: names addresses involved, dates times undertaken, geographic occur, complied governing contained verified oath responsible officer desiring Completed accompanied fee, submitted clerk board. "If determine requirements [Article III] met, issued specifying place." 22-21. No felony indictment solicitor. 22-23. "[n]othing herein provided posted sign 'no invited.' "satisfactory proof" compliance certified last full operations, comparable evidence utilized solely organization." th[e] whatsoever" registration statement General. Ill.Rev.Stat., ch. 23, 5102(a) "maintain accurate detailed records" "shall inspection duly authorized representative." 5102(f). Registration statements inspection. appended copy appearing newspaper. "Is past discussed Part excluded protections, decisions, extent, longer 758-759, 762, 1823-1824, applying doctrine, see infra, 634, remains distinguish noncommercial defends rationale Appeals, asserts uncontroverted complete it. respondent, urge position it; need pursue error. "to ways" prohibited. Unlike unable comply demonstrating reasonable. during previous year, appears way alter spending patterns short run. Thus, bars in-person suggestion permits, offering sale. described nonprofit, law, devote conducting campaigns vary dramatically depending wide range variables, many Code, contains proscriptions solicitors. 22-12 makes "unlawful cheat, deceive fraudulently misrepresent, himself employee, acting ." situation Ohralik Ohio Assn., 436 447, 1912, (1978), disciplinary taken solicited accident victims remunerative employment, inherently conducive overreaching prohibition. report structure n. 5, Indeed, employing screened advance volunteers. regard, somewhat surprising reference improvement ordinance. 635, 9. cost exceed expected raised. finds appeal, ability Worth's officials waive show unreasonable." 44, 2. potential abuse open-ended think more, less, suspect Schaumburg's. eligibility efforts. rule, superficially appealing, suffers serious drawbacks. exemptions deductions matter legislative grace, privilege. Commissioner 356 27, 28, 78 512, 513, 559 (1958). Lewyt Corp. Commissioner, 349 237, 240, 739, 1029 (1955). Tax Reform Act exemption available "substantial part" attempts influence legislation." U.S.C. 501(c)(3), Pub.L. 94-455, Stat. 1727. U.S.Code Cong. & Admin.News, pp. 2897, 4104-4109. Even today 501(h). Nevertheless, imagine lobbying previously from, closely regulated by, 501 lie close seeks reason, bases sandy soil. Yet objectively verifiable render eligible

Category: 2