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LAWS OF MARYLAND

Ch. 117

setting forth the reason for the claim for exemption. However,
if a charitable organization has local elements in this State the
charitable organization may submit, on behalf of its local
elements, the name, address and purpose of the organization and
its local elements and a statement setting forth the reason for
the claim for the exemption. If exempted, the Secretary of State
shall initially issue a letter of exemption which may be
exhibited to the public. A registration fee is not required of
an exempt organization.

(c)  Thereafter, a charitable organization shall certify to
the Secretary of State, upon the initiative of the Secretary, a
brief certification which shall state that the status of the
charitable organization is unchanged.

(d)  A charitable organization claiming to be exempt from
the registration provisions of this subtitle, shall report to the
Secretary of State any change from its exempt status by certified
mail, return receipt requested, bearing a postmark from the
United States Postal Service, within 10 days of the occurrence.
Within 30 days after the change in status the organization shall
file the registration statement in accordance with § 103B.]

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
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.

(b) For purposes of this section, the total gross income
raised or received shall 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