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
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(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.