3718

LAWS OF MARYLAND

Ch. 787

made if the gross amount of the contributions collected, without
any deductions, are turned over to the named beneficiaries for
their use.

(3) A charitable organization which does not intend
to solicit and does not actually receive contributions from the
public in excess of $5,000 during the year for which a
registration statement AND FINANCIAL REPORT would otherwise be
required, if (i) all of its fund-raising activities are carried
on by persons who are unpaid for their services, and (ii) no part
of its assets or income inures to the benefit of or is paid to
any officer or member of the organization.

103D.

(a) A charitable organization other than a charitable
salvage organization may not pay or agree to pay as expenses in
connection with any fund-raising activity a total amount in
excess of 25 percent of the total gross income raised or received
by reason of the fund-raising activity. The Secretary of State
shall, by rule or regulation in accordance with the "standard of
accounting and fiscal reporting for voluntary health and welfare
organizations" provide for the reporting of actual cost, and of
allocation of expenses, of a charitable organization into those
which are in connection with a fund-raising activity and those
which 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] FUND-RAISING 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.

(c) Every contract or agreement between a professional
[fund-raiser] FUND-RAISING 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.

[103F.

(a) A person may not act as a professional fund-raiser
counsel or professional solicitor for a charitable organization
unless he has first registered with, the Secretary of State.
Applications for registration shall be in the form prescribed by
the Secretary of State, shall contain the information required by
him, and shall be under oath. The application for registration by