MARVIN MANDEL, Governor 1871
ARE NOT. THE SECRETARY OF STATE SHALL ISSUE RULES AND
REGULATIONS TO PERMIT A CHARITABLE ORGANIZATION TO PAY OR
AGREE TO PAY FOR EXPENSES IN CONNECTION WITH A
FUND-RAISING ACTIVITY MORE THAN 25% OF ITS TOTAL GROSS
INCOME IN THOSE INSTANCES WHERE THE 25% LIMITATION WOULD
EFFECTIVELY PREVENT THE CHARITABLE ORGANIZATION FROM
RAISING CONTRIBUTIONS.
THE 25% LIMITATION IN THIS SUBSECTION SHALL NOT
APPLY TO COMPENSATION OR EXPENSES PAID BY A CHARITABLE
ORGANIZATION TO A PROFESSIONAL FUND-RAISER COUNSEL FOR
CONDUCTING FEASIBILITY STUDIES FOR THE PURPOSE OF
DETERMINING WHETHER OR NOT THE CHARITABLE ORGANIZATION
SHOULD UNDERTAKE A FUND-RAISING ACTIVITY, SUCH
COMPENSATION OR EXPENSES PAID FOR FEASIBILITY STUDIES OR
PRELIMINARY PLANNING NOT BEING CONSIDERED TO BE EXPENSES
PAID IN CONNECTION WITH A FUND-RAISING ACTIVITY.
(B) FOR PURPOSES OF THIS SECTION, THE TOTAL GROSS
INCOME RAISED OR RECEIVED SHALL [[NOT INCLUDE]] BE
ADJUSTED SO AS NOT TO INCLUDE CONTRIBUTIONS RECEIVED
EQUAL TO THE ACTUAL COST TO THE CHARITABLE ORGANIZATION
OF (1) GOODS, FOOD, ENTERTAINMENT, OR DRINK SOLD OR
PROVIDED TO THE PUBLIC, NOR SHOULD THESE COSTS BE
INCLUDED AS FUND-RAISING COSTS; (2) THE ACTUAL POSTAGE
PAID TO THE UNITED STATES POSTAL SERVICE AND PRINTING
EXPENSE IN CONNECTION WITH THE SOLICITING OF
CONTRIBUTIONS, NOR SHOULD THESE COSTS BE INCLUDED AS
FUND-RAISING COSTS.
(C) EVERY CONTRACT OR AGREEMENT BETWEEN A
PROFESSIONAL FUND-RAISER COUNSEL OR A PROFESSIONAL
SOLICITOR AND A CHARITABLE ORGANIZATION SHALL BE IN
WRITING, AND A COPY OF IT SHALL BE FILED WITH THE
SECRETARY OF STATE WITHIN TEN DAYS AFTER IT IS ENTERED
INTO AND PRIOR TO ANY SOLICITATIONS.
[[(D) EVERY CONTRACT BETWEEN A CHARITABLE
ORGANIZATION AND A PROFESSIONAL SOLICITOR SHALL BE IN
WRITING, AND A COPY OF IT SHALL BE FILED WITH THE
SECRETARY OF STATE WITHIN TEN DAYS AFTER IT IS ENTERED
INTO. IF THE CONTRACT DOES NOT PROVIDE FOR COMPENSATION
ON A PERCENTAGE BASIS, THE SECRETARY OF STATE SHALL
EXAMINE IT TO ASCERTAIN WHETHER THE COMPENSATION WHICH
MAY BE PAYABLE BY THE CHARITABLE ORGANIZATION IS LIKELY
TO EXCEED 25 PERCENT OF THE TOTAL GROSS INCOME RAISED OR
RECEIVED AS A RESULT OF SERVICES PERFORMED BY THE
PROFESSIONAL SOLICITOR. IF THE SECRETARY OF STATE
DETERMINES THAT THE COMPENSATION IS LIKELY TO EXCEED THAT
AMOUNT, HE SHALL DISAPPROVE THE CONTRACT WITHIN TEN DAYS
AFTER IT IS FILED. A REGISTERED CHARITABLE ORGANIZATION
OR PROFESSIONAL SOLICITOR SHALL NOT CARRY OUT OR PERFORM
UNDER A DISAPPROVED CONTRACT. ANY PARTY TO A DISAPPROVED
CONTRACT, UPON WRITTEN REQUEST MADE WITHIN 30 DAYS OF
DISAPPROVAL, SHALL BE GIVEN A HEARING BEFORE THE
SECRETARY OF STATE WITHIN 30 DAYS AFTER THE REQUEST IS
FILED.
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