§467B-1  Definitions.  As used in this
chapter, unless the context otherwise requires:



"Charitable organization" means:



(1)  Any person determined by the Internal Revenue
Service to be a tax exempt organization pursuant to section 501(c)(3) of the
Internal Revenue Code of 1986, as amended; or



(2)  Any person who is or holds itself out to be
established for any benevolent, educational, philanthropic, humane, scientific,
patriotic, social welfare or advocacy, public health, environmental
conservation, civic, or other eleemosynary purpose, or any person who in any
manner employs a charitable appeal as the basis of any solicitation or an
appeal that has a tendency to suggest there is a charitable purpose to the
solicitation.  The term includes each county or other local division of the
charitable organization within this State, if the division has the authority
and discretion to disburse funds or property otherwise than by transfer to any
parent organization.  The term does not include any federal, state, or county
agency, or political parties and candidates for federal, state, or county
office required to file financial information with federal or state election
authorities or commissions.



"Charitable purpose" means:



(1)  Any purpose described in section 501(c)(3) of the
Internal Revenue Code of 1986, as amended; or



(2)  Any benevolent, educational, philanthropic,
humane, scientific, patriotic, social welfare or advocacy, public health,
environmental conservation, civic, or other eleemosynary objective.



"Charitable sales promotion" means an
advertising or sales campaign, conducted by a commercial co-venturer, that
represents that the purchase or use of goods or services offered by the
commercial co-venturer will benefit, in whole or in part, a charitable organization
or charitable purpose.



"Commercial co-venturer" means a
person who, for profit, is regularly and primarily engaged in trade or commerce
other than in connection with soliciting for charitable organizations or
charitable purposes, and who conducts charitable sales promotions.



"Contribution" means the promise or
grant of any money or property of any kind or value, including the promise to
pay, except payments by members of a charitable organization for membership
fees, dues, fines, or assessments, or for services rendered to individual
members, if membership in the charitable organization confers a bona fide
right, privilege, professional standing, honor, or other direct benefit, other
than the right to vote, elect officers, or hold offices, and except money or
property received from any governmental authority, or a grant or subsidy from
any organization exempt from taxation under section 501(c)(3) of the Internal
Revenue Code.



"Department" means the department of
the attorney general.



"Director."  DELETED.



"Fundraising costs" means those costs
incurred in inducing others to make contributions to a charitable organization
for which the contributors will receive no direct economic benefit.  The term
generally includes but is not limited to salaries, rent, the costs of acquiring
and maintaining mailing lists, printing, mailing, and all direct and indirect
costs of soliciting, as well as the cost of unsolicited merchandise sent to
encourage contributions.  The term does not include the direct cost of merchandise
or goods sold or the direct cost of fundraising dinners, bazaars, shows,
circuses, banquets, dinners, theater parties, or any other form of benefit
performances.



"Gross receipts" means the total
amount of money, contributions, and revenue of any kind received by the
charitable organization from all sources, without subtracting any costs or
expenses.



"Gross revenue" means income of any
kind from all sources, including all amounts received as the result of any
solicitation by a professional solicitor.



"Membership" means membership in a
charitable organization that provides services and confers a bona fide right,
privilege, professional standing, honor or other direct benefit upon its
members, in addition to the right to vote, elect officers or hold offices, upon
the payment of fees, dues, assessments, etc.  The term does not include those
persons who are granted a membership upon making a contribution as a result of
solicitation.



"Owner" means any person who has a
direct or indirect interest in any professional fundraising counsel or
professional solicitor.



"Parent organization" means that part
of a charitable organization that coordinates, supervises, or exercises control
over policy, fund raising, and expenditures, or assists or advises one or more
related foundations, supporting organizations, chapters, branches, or
affiliates of such organization in this State.



"Percentage compensation" means any
compensation, commission, bonus, award, or remuneration, whether direct,
indirect, or otherwise, that is calculated by means of a formula, process,
evaluation, or other mechanism that considers the amount of funds to be raised
or received.



"Person" means an individual,
corporation, limited liability company, association, partnership, trust,
foundation, and any other entity, however styled.



"Professional fund-raising counsel"
or "professional fundraising counsel" means any person who, for
compensation, plans, conducts, manages, advises, consults, or prepares material
for, or with respect to, the solicitation of contributions in this State for a
charitable organization, but who actually solicits no contributions as a part
of the person's services, and who does not employ, procure, or engage any
compensated person to solicit contributions.  The term shall not include a bona
fide volunteer, salaried officer, or employee of a charitable organization.



"Professional solicitor" means any
person who, for a financial or other consideration, solicits contributions in
this State for a charitable organization, or any person with whom the
professional solicitor independently contracts to solicit for contributions.  A
person who is otherwise a professional fundraising counsel shall be deemed a
professional solicitor if the person's compensation is related to the amount of
contributions received.  The term does not include a bona fide volunteer.  The
term includes a salaried officer or employee of a charitable organization if
the salaried officer or employee of the charitable organization receives
percentage compensation.  The term does not include an attorney, investment
counselor or advisor, financial advisor, or banker, or other person who:



(1)  Advises another person to make a contribution to
a charitable organization as part of the person's employment; and



(2)  Does not receive compensation from the charitable
organization for that advice.



"Solicit" and
"solicitation" mean a request directly or indirectly for money,
credit, property, financial assistance, or thing of value on the plea or
representation that the money, credit, property, financial assistance, or thing
of value, or any portion thereof, will be used for a charitable purpose or to
benefit a charitable organization.  These terms shall include the following:



(1)  Any oral or written request.



(2)  The making of any announcement to any
organization for the purpose of further dissemination, including announcements
to the press, over the radio or television, or by telephone, telegraph, or
facsimile, concerning an appeal or campaign by or for any charitable organization
or purpose.



(3)  The distribution, circulation, posting, or
publishing of any handbill, written advertisement, or other publication that
directly or by implication seeks to obtain public support.



(4)  Where the sale or offer or attempted sale, of any
advertisement, advertising space, book, card, tag, coupon, device, magazine,
membership, merchandise, subscription, flower, ticket, candy, cookies, or other
tangible item in connection with which any appeal is made for any charitable
organization or purpose; or where the name of any charitable organization is
used or referred to in any appeal as an inducement or reason for making any
sale; or where in connection with any sale, any statement is made that the
whole or any part of the proceeds from any sale will be used for any charitable
purpose or to benefit any charitable organization.



(5)  A request made through the use of receptacles for
contributions such as honor boxes, vending machines, wishing wells,
contribution boxes, and novelty machines, where a charitable appeal is used or
referred to or implied as an inducement or reason to contribute.



A solicitation occurs whether or not the person
making the solicitation receives any contribution. [L 1969, c 167, pt of §1; am
L 1982, c 204, §8; am L 1983, c 124, §17; gen ch 1985; am L 1990, c 129, §3; am
L 1993, c 206, §2; am L 2004, c 93, §3; am L 2006, c 168, §2; am L 2008, c 174,
§3]