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HomeMy Public PortalAboutOrd. 1313w ORDINANCE NO. 1313 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ESTABLISHING THE CHARITABLE SOLICITATIONS ACT. WHEREAS, the City Council finds that, in the area of solicitations for charitable purposes, a condition exists which has worked fraud, deceit and imposition upon the people of the City which existing legal remedies are inadequate to correct; and WHEREAS, many solicitations for charitable purposes have involved situations where funds are solicited from the residents of this, City for chasritable purposes, but'an insignificant amount, if any, of the money solicited and collected actually is received by any charity; and WHEREAS, the charitable solicitation industry has a significant impact upon the well-being of the people of this city; and WHEREAS, the provisions of this article relating to solicitations and sale solicitations for charitable purposes are, therefore, necessary for the public welfare. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES RESOLVE, DECLARE, FIND AND ORDER AS FOLLOWS: SECTION 1. 1. The City Council declares that the purpose of this article is to safeguard the public against fraud, deceit and imposition, and to foster and encourage fair solicitations and sales solicitations for charitable purposes, wherein the person from whom the money is being solicited will know what portion of the money will actually be utilized for charitable purposes. 2. This article will promote legitimate solicitations and sales solicitation for charitable purposes and restrict harmful solicitation methods, thus the people of this state will not be misled into giving solicitors a substantial amount of money which may not in fact be used for charitable purposes. SECTION 2. As used in this article, "sale" shall include a gift made with the hope or expectation of monetary compensation. SECTION 3. ta) As used in this article, "solicitation for charitable purposes," means any request, plea, entreaty, demand, or invitation, or attempt thereof, to give money or property, in connection with which: 1) Any appeal is made for charitable purposes; or 2) The name of any charity, philanthropic or charitable organization is used or referred to in any such appeal as an inducement for makincx anv such gift: or 1) Any appeal is made for charitable purposes; or 2) The name of any charity, philanthropic or charitable organiza- tion is used or referred to in any such appeal as an induce- ment for making any such sale; or 3) Any statement is made to the effect that the whole or any part of the proceeds from such sale will go to or be used for any charitable purpose or organization. c) A solicitation for charitable purposes, or a sale, offer or attempt to sell for charitable purposes, shall include the making or disseminating or causing to be made or -_ disseminating or causing to be made or disseminated before the public in this state, in any newspaper or other publication or ary advertising device, or y public outcry or proclamation, or in any other manner or means whatsoever any such solici--.~ tafion. d) For purposes of this article, "charity" shall include any person who, or any nonprofit community organization, fraternal, benevolent, educational, philanthropic, or service organization, or governmental employee organization which, solicits or obtains contributions solicited from the public for charitable purposes or holds any assets for charitable purposes. SECTION 4. Solicitation or sales solicitation for charitable purposes; disclosure requirements; noncompliance by volunteer solicitor. (a) Prior to any solicitation or sales solicitation for charitable purposes, the solicitor or seller shall file with :.the City.Clerk'a notice of intention describing the nature, purpose, method and estimated expenses of the proposed solicitation of the proposed solicitation and set forth in detail the solicitor's receipts, expenses and charitable distributions for the previous year. Once the information is provided and verified by the city Clerk, the City Clerk will issue a "Solicitation or Sale for Charitable Purposes Card," as described below. (b) Prior to any solicitation or sales solicitation for charitable purposes, the solicitor or seller shall exhibit to the prospective donor or purchaser acard entitled "Solicitation or Sale for Charitable Purposes Card." The card shall be signed and dated under penalty of perjury by an individual who is a principal, staff member, or officer of the soliciting organization. The card shall give the name and address of the coliciting organization or the person who signed the card and the name and business address of the paid individual who is doing the actual soliciting. In lieu of exhibiting a card, the solicitor or seller may distribute during the course of the solicitation any printed material, such as a solicitation brochure, provided such material complies with the standards set forth below, and provided that the solicitor or seller informs the prospective donor or Information on the card or printed material shall be presented in at least 10-point type and shall include the following: 1) The name and address of the combined campaign, each organization, or fund on behalf of which all or any part of the money collected will be utilized for charitable purposes. 2) If there is no organization or fund, the manner in which the money collected will be utilized for charitable purposes. 3) The amount, stated as a percentage of the total gift or or purchase price, that will be used for charitable purposes. 4) If paid fund raisers are paid a set fee rather than a percentage of the total amount raised, the card shall show the total cost that is estimated will be used for direct fundraising expenses. 5) If the solicitation is not a sale solicitation, the card may state, in place of the amount of fundraising expenses, that an audited financial statement of such expenses may be obtained by contacting the organization at the address disclosed. 6) The non-tax-exempt status of the organization or fund, if the organization or fund for which the money or funds are being solicited does not have a charitable tax exemption under both federal and state law. 7) The percentage of the total gift or purchase price which may be deducted as a charitable contribution under both federal and state law. If no portion is so deductible the card shall state that "This contribution is not tax deductible." S) If the organization making the solicitation represents any nongovernmental or-ganization by any name which includes, but is not limited to, the term "officer," peace officer," "police," "law enforcement," "reserve officers;," "deputy;" "California Highway Patrol," "highway Patrol," or "deputy sheriff," which would reasonably be understood to imply that the organiza- tion is composed of law enforcement personnel, the solicitor shall give the total number of members in the organization and the number of members working or living within the county where the solicitation is for advertising, the statewide circulation of the publication in which the solicited ad will appear. (c) Knowing and willful:-.noncompliance by any individual volunteer who receives no compensation of any type from or in connection with a solicitation by any charitable organization shall subject'. the solicitor or seller to the penalties of the laiv.- (d) When the solicitation is not a sales solicitation, any individual volunteer who receives no compensation or any type from,~or in connection with, a solicitation by any charita}~le organization ... .... .........1 .. .... i-Y. +-1.., Aicrl~cnro nrnvicinnc fiv nrnfiAiT1R f}1P .. (e) A volunteer who receives no compensation of any type from, or in connection with, a solicitation or sales solicitation by a charitable organization which has qualified for a tax exemption under Section 501(c) (3) of the Internal Revenue Code of 1986, and who is 18 years of age or younger, is not required to make any disclosures pursuant to this section. SECTION 5. Financial records; accounting principles. The financial records of a soliciting organization shall be maintained on the basis of generally accepted accounting principles as defined by the American Institute of Certified Public Accountants and the Financial Accounting Standards Board. The disclosure requirements of subdivisions (c) and (e) of Section 4 shall be based on the same accounting principles used to maintain:the soliciting organization's financial records. SECTION 6. Inapplicability of article. The provisions of this article shall not apply to solicitations, sales, offers, or attempts to sell within the membership of a charitable organization or upon its regular occupied premises, nor shall it apply to funds raised as authorized by Section 326.5 of the Penal Code. PASSED, APPROVED and ADOPTED this 15th day of November , 1988. PAUL H. RICHARDS, Mayor City of Lynwood ATTEST: -_ cam' ANDREA L. HOOPER, Cit' Clerk APPROVED AS TO CONTENT: V ENTE L. MAS, Director Community Development Dept.