Governor Rell Signs Bill

Regulating Charitable Funds

Bill Provides Financial Relief to Smaller Charities;

Provides Greater Regulation of Charities Using Paid Solicitors

Governor M. Jodi Rell today signed into law a bill that helps smaller charities keep more of the money they raise by eliminating the requirement for an audit while ensuring that they are still subject to state oversight. The bill also regulates to a greater degree charities that use paid solicitors.

The new law raises the threshold for the requirement that a charity’s annual report be audited -- from $200,000 to $500,000 -- but requires all charitable organizations to register and file annual reports with the Department of Consumer Protection.  It also changes the definition of “paid solicitor” to include a person who solicits contributions for “consideration” – such as goods or services – rather than compensation.

“This bill provides financial relief to smaller charities and helps to ensure that more of the dollars raised are spent on the charity itself rather than on a costly audit,” Governor Rell said.  “It also provides for greater regulation of charities that use paid solicitors by now including those who raise funds in exchange for gifts rather than cash.”

The bill also allows the Commissioner of Consumer Protection to reduce or waive late fees and to waive audit requirements.