Legal Document

487 U.S. 781 108 S.Ct. 2667 101 L.Ed.2d 669 Randolph RILEY, etc., et al., Appellants,v.NATIONAL FEDERATION OF THE BLIND NORTH CAROLINA, INC., al. No. 87-328. Argued March 23, 1988. Decided June 29, Syllabus The North Carolina Charitable Solicitations Act defines the prima facie "reasonable fee" that a professional fundraiser may charge according to three-tiered schedule. A fee up 20% of receipts collected is deemed reasonable. between and 35% unreasonable upon showing solicitation at issue did not involve "dissemination information, discussion, or advocacy relating public issues as directed by [charitable organization] which benefit from solicitation." exceeding presumed unreasonable, but rebut presumption was necessary either because involved dissemination information on charity, otherwise charity's ability raise money communicate would be significantly diminished. also provides must disclose potential donors average percentage gross actually turned over charities for all charitable solicitations conducted in State within previous 12 months. Finally, fundraisers solicit without an approved license, whereas volunteer immediately submitting license application. Appellees, coalition fundraisers, organizations, donors, brought suit against appellant government officials charged with enforcement (hereinafter collectively referred State), seeking injunctive declaratory relief. District Court ruled challenged provisions their face unconstitutionally infringed freedom speech enjoined enforcement. Appeals affirmed. Held: 1. Carolina's definition fees" infringes speech. contributions protected speech, using percentages decide legality fundraiser's narrowly tailored State's interest preventing fraud. Schaumburg v. Citizens Better Environment, 444 620, 100 826, 63 73; Secretary Maryland Joseph H. Munson Co., 467 947, 104 2839, 81 786. cannot meaningfully distinguish its statute those previously held invalid ground it has motivating interest, present prior cases, ensure maximum amount funds reach guarantee unreasonable. This provision merely economic regulation, no First Amendment implication, tested only rationality; instead, regulation considered one burdening asserted justification charities' regulated own unsound. mandates speakers, government, know best both what they want say how it. Also unavailing contention Act's flexibility more tailors interests than laws invalidated cases. additional are constitutionally insufficiently related percentage-based test. And while protecting fraud sufficiently substantial justify statute, even flexibility, such interest. Pp. 787-795. 2. requirement before appeal funds, during months were charity unconstitutional. content-based mandating speaker make necessarily alters speech's content. Even assuming mandated abstract, "commercial," does retain commercial character when inextricably intertwined fully solicitations, thus subject test expression, deferential principles. Nor applied theory compelled different silence. difference constitutional significance, guarantees "freedom speech," term comprising decision say. Moreover, purposes, distinction drawn statements opinion and, here, "fact," since form compulsion burdens Thus, exacting scrutiny. informing contribute spent dispel alleged misperception give goes greater-than-actual proportion weighty, means chosen accomplish unduly burdensome tailored. 795-801. 3. licensing speaker's rights lost compensation received, power carries (unless properly constrained) directly substantially affect utter. Consequently, Generally, speakers need obtain speak. regulating who justifies requiring soliciting, provide licensor will, specified brief period, go court. That met permits delay limit. can assert history issuing licenses quickly constitutes practice effectively constraining licensor's discretion, relates time (prior amendment Act) permitted soon applications filed. 801-804. 817 F.2d 102 (CA 4 1987), BRENNAN, J., delivered Court, WHITE, MARSHALL, BLACKMUN, KENNEDY, JJ., joined, Parts I, II, III, STEVENS, n. 11 SCALIA, joined. filed concurring part judgment, post, p. ---. dissenting part, REHNQUIST, C.J., opinion, O'CONNOR, Lacy Thornburg, Atty. Gen., Raleigh, N.C., appellants. Errol Copilevitz, Kansas City, Mo., appellees. Justice BRENNAN Court. 1 governs fundraisers. As relevant revenues solicited; requires retained solicitations; engaging solicitation. United States Fourth Circuit these aspects We affirm. 2 * Responding study five years largest had fees costs well 50% drives, amended 1985. amended, prohibits retaining "unreasonable" "excessive" fee,1 defined schedule.2 If 35%, deems (1) (2) describes Act, where unreasonableness been rebutted, factfinder still ultimate determination, case-by-case basis, whether reasonable—a alone establish total See Brief Appellants 10-11; Reply 2-3. 3 that, any donors: his her name; name solicitor fundraising counsel whom he she employed address employer; (3) months.3 Only third disclosure here. license.4 In contrast, N.C.Gen.Stat. § 131C-4 (1986). effect 1985 amendments, law allowed application submitted. 5 various Eastern summary judgment foregoing (it found other respects us now), unconstitutional provisions. 635 F.Supp. 256 affirmed per curiam opinion. (judgment order), we noted probable jurisdiction, 484 911, 256, 98 214 (1987). II 6 turn first provision. deciding this issue, do write blank slate; heretofore twice financial solicitations. examined 73 (1980). There local ordinance solicitors use, purposes (defined exclude used toward administrative expenses conducting solicitation), 75% solicited. began our analysis categorizing type issue. village argued akin business proposition, therefore rejected approach squarely held, basis considerable precedent, "involve variety . protection Amendment," have dealt "purely speech." Id., 632, S.Ct., 834. Applying standard analysis, determined achieve village's principal interest: prevention concluded some charities, especially formed primarily advocate, collect, disseminate necessity expend 25% administration expenses. 635-637, 835-836. Yet eventuality render fraudulent. short, "peripherally promoted 75-percent could served measures less destructive interests." 636-637, observed free enforce already existing require file reports. 637-638, nn. 11-12, 836-837, 11-12. 7 revisited field four later 786 (1984), case closer contracts Specifically, question forbade if, after allowing deduction many associated solicitation, collected. Although empowered waive limitation prevent organization raising contributions, under force Schaumburg. argument restraints relationship mere "economic regulations" implication. Rather, viewed "a direct restriction spend activity," activity." U.S., 967, 16, 2852-2853, 16. subjected Again, again use goal. fact, if prevented cases "little fortuitous." An "equally likely" result "restrict activity results high itself goal simply attributable fact cause proves unpopular." 966-967, 2852. 8 Munson, unpersuaded here three-tiered, passes muster. Our teach fraud.5 much established, unless discussed precedents, fall. offers two distinctions. First, asserts expressed Munson: ensuring or, somewhat relatedly, "unreasonable." Second, contends find arguments unavailing. 9 fairness rest premises (or both): organizations economically unable negotiate fair reasonable governmental assistance; incapable themselves most effective way exercise rights. Accordingly, claims single transcendent criterion bind speaking decisions. reject premises. 10 premise, notwithstanding almost talismanic reliance assertion it, amounts little variation rationality. argument; accordingly. reason believe thwarted attempts speak consider enter anything equitable.6 made, solution stands sharp conflict Amendment's command measured minimums, maximums. remaining justification—the paternalistic premise benefit—is equally presume Tashjian Republican Party Connecticut, 479 208, 224, 107 544, 554, 93 514 (1987) (criticizing "the party undertaking course conduct interests," reiterating " 'may interfere [with expressions freedoms] [it] view[s] particular expression unwise irrational' ") (quoting Democratic Wisconsin ex rel. La Follette, 450 107, 124, 1010, 1020, 67 82 (1981)); cf. National Bank Boston Bellotti, 435 765, 791-792, 31, 1407, 1424, 55 707 (1978) political process restricting corporations); Linmark Associates, Inc. Willingboro, 431 85, 97, 97 1614, 1620, 52 155 (1977) (criticizing, context, maintaining quality neighborhoods residents). "The very purpose foreclose authority guardianship mind through press, religion." Thomas Collins, 323 516, 545, 65 315, 329, 89 L.Ed. 430 (1945) (Jackson, concurring). To end, purest motives, substitute listeners; robust debate thrive government. perceive engraft exception settled rule charities. discussion demonstrates regulation. But, alternatively, there several legitimate reasons why might overarching measure drive's legitimacy—the remitted charity. For example, choose drive, solicitor, expecting receive large sum dollars rather remitted. Or, designed sacrifice short-term gains order long-term, collateral, noncash benefits. illustrate, engage seek introduction officers philanthropic community special event (e.g., awards dinner). valid naivete weakness, 13 second distinguishing feature built into Act. imposing reasonableness fee, although demonstrated behalf direction. points out tier's rebutted. 14 It important clarify, though, mean "reasonableness" juncture. just demonstrated, supra, 790-791, generalized unilaterally notions contract remains particularized guaranteeing "reasonable" sense (and public) is, course, question, then, added sufficient tailor conclude not. 15 Despite clear holding nexus likelihood fraudulent, defines, facie, Indeed, attenuated least excluded definition. 950, 2, 2843, Permitting rebuttal supply missing interest.7 16 But suffers fundamental flaw. agreed used, fraud, agree prove based loose inference too high. Under once showing. Proof sufficient; factor calculus submitted factfinder, incurred profit excessive. Similarly, impermissibly insensitive realities faced small unpopular often pay due difficulty attracting donors. burden placed unreasonableness. 17 According State, worry burden, standards determining "[r]easonable will judicially years." 6. Speakers, however, made wait "years" being able security. interim, knowledge every campaign incurring excess campaigns them litigation fee. And, bear risk mistaken adverse finding fair. scheme chill contravention dictates. 969, 2853; New York Times Co. Sullivan, 376 254, 279, 84 710, 725, 686 (1964).8 18 uncertainty drive Carolina, encourage cease certain types (such combined information) representing (primarily ones), ultimately "reduc[e] quantity expression." Buckley Valeo, 424 1, 19, 39, 96 612, 635, 644, 46 659 (1976). Whether views speak, 2852, fundraisers' 955, 6, 2846, undoubtedly countenanced 19 striking down portion suggest sit idly allow citizens defrauded. antifraud law, ready Further 1981. efficient reaffirm emphatically permit efficiency. Schaumburg, 639, 837; Schneider 308 147, 164, 60 146, 152, (1939). III 20 next Mandating content Miami Herald Publishing Tornillo, 418 241, 94 2831, 41 730 (1974) (statute compelling newspaper print editorial reply "exacts penalty newspaper"). 21 argues generally protected, regulates solicited contribution. Therefore, asks apply principles Virginia Pharmacy Bd. Consumer Council, Inc., 425 748, 1817, 48 346 22 professional's whenever person's motivation speaking. Cf. Bigelow Virginia, 421 809, 95 2222, 2235, 44 600 (1975) (state labels dispositive degree protection). assuming, deciding, abstract indeed retains lodestars level scrutiny statement nature taken whole thereon. teaching refused separate component parts whole. Regulation "must undertaken regard reality characteristically informative perhaps persuasive ., flow likely cease." 834, quoted 959-960, 2848. Meyer Grant, 486 414, 422, 5, 1886, ----, (1988); 540-541. where, intertwined, parcel applying phrase another phrase. Such endeavor artificial impractical. expression.9 23 so, silence; accordingly certainly silence, context 24 equivalence silence established supra. There, Florida newspapers equal space editorially criticize. unanimously expressly noting identity prohibition operates same forbidding publish matter. Governmental restraint publishing fall familiar traditional patterns limitations powers." 2839. rely restrained involving generally. Wooley Maynard, 705, 714, 1428, 1435, 51 752 (1977), person display slogan "Live Free Die." reaching conclusion, relied principle "[t]he right refrain complementary components broader concept 'individual mind,' illustrated Tornillo. 1435 West Board Education Barnette, 319 624, 637, 1178, 1185, 87 1628 (1943)). Pacific Gas & Electric Public Utilities Comm'n California, 475 9-11, 106 903, 908-909, (1986) (plurality Powell, J.) (characterizing Tornillo terms speech); Harper Row Publishers, Nation Enterprises, 471 539, 559, 105 2218, 2230, 85 588 (1985); Abood Detroit Education, 209, 234-235, 1782, 1799, 261 (1977); 25 These distinguished deal "fact": immunize favoring project state outset cost overruns similar projects, incumbent candidate candidate's recent travel budget. factual listener, latter case, discourage listener making donation, clearly 26 believe, therefore, importance goal, adopted prophylactic applicable weighty asserts, 27 wish denigrate full disclosure, danger posits great initially appear. presumes derives so. greater detail, reaps act itself. 963, 2850; 835. significant "fee" achieving objectives though cash.10 unchallenged status thereby giving notice contributed retained.11 Donors aware incur costs, donation apply. donor inquire contribution unchallenged, request. 131C-16 refuses requested probably would) refuse donate. 28 hamper efforts represent. discriminates usually Campaigns carried unfavorable disclosures, predictable unsuccessful. identical expenses, employees volunteers, success. verbal unhappy disclosed percentage, given chance explain figure; last words spoken closes door hangs phone.12 encouraged quit disclosure. 29 contrast prophylactic, imprecise, reduce misperception, benign options available. general rule, detailed forms file. procedure desired unwanted Alternatively, vigorously prohibit obtaining false pretenses statements. rules keeping directive dictate absent necessity, precisely E.g., Consolidated Edison Service York, 447 530, 537-538, 2326, 2333, "Broad area suspect. Precision touchstone so closely touching precious freedoms." NAACP Button, 371 415, 438, 83 328, 340, 405 (1963) (citations omitted). IV 30 requirement. await determination regarding 31 Given ignore received; paid 265-266, 718. Lakewood Plain Dealer 750, 755-756, 2138, 771 (1988) (when enacts periodic aimed discretion suitably confined).13 32 However, absolute. impose time, place, manner restrictions. Cox Hampshire, 312 569, 61 762, 1049 (1941). seeks come alleging heightened money. "will, court." Freedman Maryland, 380 51, 59, 734, 739, 649 (1965). (as amended) purport nor interpretation doing argues, discretion. Poulos 345 395, 760, 1105 (1953). agree. refers period Then, speech; now, compels circumstances, stand.14 V 33 hold three us. 34 Affirmed. 35 judgment. 36 ideas. ante, 787-789; 959-961, 2848-2849, (1984); 628-632, 831-833, axiomatic fraudulent misrepresentation facts regulated, (1964), ideas unfair see, e.g., Hustler Magazine, Falwell, 485 46, 54, 57, 876, 99 256-258, 2839-2840, (1974); Organization Austin Keefe, 402 419, 91 1575, 1578, (1971); Kingsley International Pictures Corp. Regents University 360 684, 688-689, 79 1362, 1365, 1512 (1959); Baumgartner States, 322 665, 673-674, 64 1240, 1244-1245, 88 1525 (1944). Because except footnote 11, consistent principle, I join exception. 37 sentences footnote, depart hand pronouncement situation us, see Where core assess liability specific instances deliberate deception, misleading made. Landmark Communications, 829, 843-844, 1535, 1543-1544, 56 (1978). Since assuredly donations professional, in-house employee, volunteer—it mass request "for" announcing status. Compensatory employment judge, natural things, expect announce selling point. 38 dictum represents departure understanding, embodied Amendment, concerned, safer assume people smart enough get wise impartial them. 39 part. 40 Court's CHIEF JUSTICE evidence suggesting dilatory processing applications. respectfully dissent Part Chief O'CONNOR joins, dissenting. 42 1980 enacted suburb Chicago raised 73. effort comply decision, official imposition money, nonetheless statute. (1984). Following revised contain described today. now invalidates well. 43 seminal Lovell Griffin, 303 444, 58 666, 949 (1938), (1939), Martin Struthers, 141, 862, 1313 (1943), establishing interesting compare activities "solicitors" like one. Lovell, convicted distributing religious pamphlet magazine called "Golden Age" permit. 450, 668. Schneider, showed petitioners "Jehovah's Witness" canvassed house-to-house leave behind literature defray printing others. 158, 149. Martin, Jehovah's Witness, went door-to-door residents homes leaflets advertising meeting. 142, 862. far cry case. plaintiff, Indiana corporation, for-profit promoting events advice customers should conducted. Its include[d] chapters Fraternal Order Police." 2843. presumably operate manner. obdurately legislated sort incidental hand, entirely whose job put, figuring 45 recognized newsgathering function, upheld former Amendment. Labor Relations Associated Press NLRB, 301 103, 57 650, 953 (1937); antitrust laws, Farmer's Guide Prairie Farmer 293 268, 182, 356 (1934), Fair Standards Smith Evening News Assn., 195, 267, 246 (1962). seems me vaguely "charitable solicitation," pursued deserves favorable treatment. accepting rightly decided, extension provides, heart, "an excessive fee." 131C-17.2(a) Unlike soliciting show proceeds put themselves. unlike introduce circumstances. my view, distinctions crucial proper carefully trying serve fees. 47 speech: today concludes flatly "this accordingly." Ante, 794. know, never impact matter indirect, strict identified "chill[ed]" required speculates "chill" "drive Carolina" induce fundraising. Of undeniable price control regulation—which are, essence—will services prices regulated. 979, 2858-2859 (REHNQUIST, dissenting). driven rankest speculation; doughtier breed realizes. am unwilling say, extremely bare record, prohibiting charging "unreasonable excessive" availability hypothesizes. plaintiffs opportunity effect, so; guesswork consequences conclusion ought deduced evidence. record minimal resulting characterized remote incidental, "heightened scrutiny" rationally overcharging 49 apply, view survive. indicated support 835-836; 961, 2849. Here, "promot[ing] transmission public's medium for-profit, fundraiser," 3, "expectations thinks solicited," 980, 2859, 2.1 50 serves interests, note blanket exceed receipts, Munson.2 basic trier-of-fact "reasonable." light percentages, factors "involve[s] [charity] §§ 131C-17.2(c), (d)(1), "raise ideas, opinions, positions diminished" lower 131C-17.2(d)(2). inclusion protects vices fixed-percentage struck Munson. limited waiver unacceptable gave "no determine warrant waiver." 2850. meant waivers hiring 963-964, No problem exists here: considerations desire message across account reasonableness. said overbroad, avoid restrictions "First unpopular," satisfy interests. reverse charity," 795.3 "better inform donating go" assist 17. concludes, lengthy constitutionality "compelled statements," survive disagree. 53 verifiable donor. occur point (which oral written), analogous mandatory requirements exist contexts, securities transactions. true "commercial" transaction—the fundraiser—does create applied. involves "message" (through fundraiser), little, any, itself, donor's financially cause. 54 collections rough surrogate question. position stronger legislative testimony vary greatly another. Nonetheless, aspect enacting strong, prevents absence dramatically limit impede information. again, nothing speculation guide neither offered effect. On considering "[w]hen assailed bound existence sustain part," Alabama Federation McAdory, 325 465, 1384, 1391, 1725 (1945), uphold final validity contained beyond dispute differentiates fundraisers; until accepted, may. impermissible thing, typically relies hires licensed State. While hire whomever chooses fundraiser, other, professionals assistance donations.4 extent, truly incidental.5 addition, circumstances suggestion bar admission petitioner's pleases attorney, suggested reviewed occupational requirements. think allegedly requirements; restrict profession "solicitation" license. prospective lawyer's "right" hired advocate client. So attempt business—professional fundraising—some members reasonably thought pose activity. Jackson it: modern owes perform duty protect When calling, shielding untrustworthy, incompetent, irresponsible, unauthorized representation agency. usual method performing function system." (concurring opinion). statute's App. 60, review Presumably, defrauded cheated individuals known Orleans Dukes, 427 297, 2513, 511 would, accordingly, treatment volunteers professionals. "Fee" includes 131C-3(5a) Gen.Stat. 131C-17.2 provides: "(a) fund-raising funds. "(b) section twenty percent (20%) nonexcessive. "(c) thirty-five (35%) challenging "(d) only, further successfully defend proving necessary: "(1) "(2) "(e) finder shall then ." 131C-16.1 states: "During requesting appealing indirectly solicited: His "(3) persons sales promotions past months, completed months." 131C-6 "Any acts annual Department [of Human Resources], license." suggests economic, having indirect demonstrate, hardly Far completely of, minimum wage affects 421-423, (1988). intended apparently surprised learn opposition surmise misinformed pro-charity Tr. Oral Arg. 20-21. stated appellees) supports below. irrelevant tenuous, demonstrate. correct fact-finder. primary defect imprecise formula. suffice argue, dissent, fund-raiser, object Fining fund-raiser obvious relation 2853, independent payment received. See, dissent's analogy misses Purely susceptible Zauderer Office Disciplinary Counsel Supreme Ohio, 626, 2265, 652 (1985). net benefits attorney's purchase service pass hands import. written, employer's address. Arguably, convey organization, "Charitable Fundraisers America." unambiguously contrary, withstand figure curious. concerns unrelated occurring dinner-dance contributors expensive printing, borne (i.e., employee staffed campaigns). "gross" curious "net" costs), easier by. 15. focus adopt reasoning, logic depends interchangeable vantage. become clients causes. Regulating heavy unbridled allows causes associated. persuaded profession, rationality review. express licensed, proposition intimated licensure devoid 544-545, appellees grant deny differential nonprofessional denies laws. grounds, questions. hard understand complaint maximize benefit," 790. All "paternalistic" parties entering choose. ever Coast Hotel Parrish, 300 379, 578, 703 (1937), finally overruled Lochner 198 45, 937 (1905), Adkins Children's Hospital, 525, 394, 785 (1923), "paternalism" perfectly acceptable motive sort. Olsen Nebraska Western Reference Bond 313 236, 246, 865, 1305 Neither holds "percentage receipts" 966, 14, 2849, 14. standing alone, "simply instrument accomplish" end [charities] [fundraiser] 131C-16.1(3) contains appeal, including name, employer, 131C-16.1(1)-(2), "his organization," absolutely registration onerous extent none left hire. evidence, heavily indicates decides proceedings complete long wait. 58-62. speed handled belies appellees' claim waiting chilling

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