Sec. 21a-190a. Solicitation of charitable funds: Definitions.
Sec. 21a-190h. Prohibited acts.
Sec. 21a-190i. Investigations. Subpoenas. Court orders.
Sec. 21a-190a. Solicitation of charitable funds: Definitions. As used in sections 21a-190a to 21a-190l, inclusive:
(1) “Charitable organization” means any person who is organized and operated, or holds himself or herself out as being organized and operated, for one or more charitable purposes. “Charitable organization” does not include any political action committee organization.
(2) “Person” means an individual, corporation, limited liability company, association, partnership, trust, foundation or any other entity however styled.
(3) “Solicit” and “solicitation” mean any request directly or indirectly for money, credit, property, financial assistance or other thing of any kind or value on the plea or representation that such money, credit, property, financial assistance or other thing of any kind or value is to be used for a charitable purpose or benefit a charitable organization. “Solicit” and “solicitation” shall include, but shall not be limited to, the following methods of requesting or securing such money, credit, property, financial assistance or other thing of value: (A) Any oral, written, electronic or online request; (B) any announcement to the press, over the radio or television or by telephone or telegraph concerning an appeal or campaign by or for any charitable organization or purpose; (C) the distribution, circulation, posting or publishing of any handbill, written advertisement or other publication; and (D) the sale of, offer or attempt to sell, any advertisement, advertising space, book, card, tag, coupon, device, magazine, membership, merchandise, subscription, flower, ticket, candy, cookies or other tangible item in connection with an appeal made for any charitable organization or purpose, or where the name of any charitable organization is used or referred to in any such appeal as an inducement or reason for making any such sale, or when or where in connection with any such sale, any statement is made that the whole or any part of the proceeds from any such sale is to be used for any charitable purpose or benefit any charitable organization. A solicitation shall be deemed to have taken place whether or not the person making the same receives any contribution.
(4) “Charitable purpose” means (A) any benevolent, educational, philanthropic, humane, scientific, patriotic, social welfare or advocacy, public health, environmental conservation, civic or eleemosynary objective, and (B) any purpose to benefit law enforcement officers, firefighters or other persons who protect the public safety.
(5) “Contribution” means the grant, promise or pledge of money, credit, property, financial assistance or other thing of any kind or value. “Contribution” shall not include bona fide fees, dues or assessments paid by members, provided membership is not conferred solely as consideration for making a contribution in response to a solicitation.
(6) “Fund-raising counsel” means a person who for compensation plans, manages, advises or consults with respect to the solicitation in this state of contributions by a charitable organization, but who does not solicit contributions and who does not directly or indirectly employ, procure or engage any person compensated to solicit contributions. “Fund-raising counsel” does not include a bona fide nontemporary salaried officer or employee of a charitable organization or an attorney-at-law retained exclusively to provide legal services.
(7) “Paid solicitor” means a person who for any consideration, including, but not limited to, monetary compensation but excluding any nonmonetary gift of nominal value awarded to a volunteer solicitor as an incentive or token of appreciation, performs for a charitable organization any service in connection with which contributions are solicited by such person or by any person he directly or indirectly employs, procures or engages to solicit for such compensation. A bona fide nontemporary salaried officer or employee of a charitable organization shall not be deemed to be a paid solicitor.
(8) “Commercial coventurer” means a person who for profit is regularly and primarily engaged in trade or commerce in this state other than in connection with the raising of funds for charitable organizations or purposes and who conducts a charitable sales promotion.
(9) “Charitable sales promotion” means an advertising or sales campaign, conducted by a commercial coventurer, which represents that the purchase or use of goods or services offered by the commercial coventurer are to benefit a charitable organization or purpose.
(10) “Department” means the Department of Consumer Protection.
(11) “Commissioner” means the Commissioner of Consumer Protection.
(12) “Membership” means that which entitles a person to the privileges, professional standing, honors or other direct benefit of the organization and the rights to vote, elect officers and hold office in the organization.
(13) “Parent organization” means that part of a charitable organization which supervises and exercises control over the solicitation and expenditure activities of one or more chapters, branches or affiliates.
(14) “Gross revenue” means income of any kind from all sources, without deduction of any costs or expenses, including all amounts received as the result of any solicitation by a paid solicitor.
(P.A. 86-369, S. 1; P.A. 95-79, S. 77, 189; June 30 Sp. Sess. P.A. 03-6, S. 146(c), (d); P.A. 04-169, S. 17; 04-189, S. 1; P.A. 09-102, S. 1; P.A. 10-9, S. 12; P.A. 25-111, S. 48.)
History: P.A. 95-79 redefined “person” to include a limited liability company, effective May 31, 1995; June 30 Sp. Sess. P.A. 03-6 and P.A. 04-169 replaced Commissioner and Department of Consumer Protection with Commissioner and Department of Agriculture and Consumer Protection, effective July 1, 2004; P.A. 04-189 repealed Sec. 146 of June 30 Sp. Sess. P.A. 03-6, thereby reversing the merger of the Departments of Agriculture and Consumer Protection, effective June 1, 2004; P.A. 09-102 redefined “paid solicitor” in Subdiv. (7), effective July 1, 2009; P.A. 10-9 redefined “gross revenue” in Subdiv. (14), effective May 5, 2010; P.A. 25-111 amended Subdivs. (1), (3)(A) and (4) to (7) by redefining “charitable organization”, “solicit” and “solicitation”, “charitable purpose”, “contribution”, “fund-raising counsel” and “paid solicitor” and made technical and conforming changes in Subdivs. (3), (4) and (6).
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Sec. 21a-190b. Registration of charitable organizations prior to solicitation. Hearing on application. Late fee. Extension of time for financial report. Failure to register. (a) Every charitable organization not exempted by section 21a-190d shall annually register with the department prior to conducting any solicitation or prior to having any solicitation conducted on its behalf by others. Application for registration shall be in a form prescribed by the commissioner and shall include a nonrefundable application fee of fifty dollars. Such application shall include: (1) A registration statement, (2) an annual financial report for such organization for the preceding fiscal year that is prepared in accordance with the provisions of subsection (a) of section 21a-190c, and (3) an audited or reviewed financial statement as required by subsection (b) of section 21a-190c, unless the commissioner waives such requirement under subdivision (4) of subsection (b) of section 21a-190c. An authorized officer of the organization shall certify that the statements therein are true and correct to the best of their knowledge. A chapter, branch or affiliate in this state of a registered parent organization shall not be required to register provided the parent organization files a consolidated annual registration for itself and its chapter, branch or affiliate. Each charitable organization shall annually renew its registration not later than eleven months after the end of such organization's fiscal year.
(b) In the event the department determines that the application for registration does not contain the documents required in subsection (a) of this section or is not in accordance with the regulations adopted by the commissioner pursuant to this chapter, the department shall notify the charitable organization of such noncompliance not later than ten days after the department's receipt of such application for registration. Any such charitable organization may request a hearing on its noncompliant status in accordance with the provisions of chapter 54.
(c) In addition to the application fee required pursuant to subsection (a) of this section, a charitable organization shall pay a late fee of twenty-five dollars for each month, or part thereof, that such application for registration is late. The commissioner may, upon written request and for good cause shown, waive or reduce any late fee under this section.
(d) In the event that a charitable organization fails to register in accordance with the provisions of this section, such organization shall include in its application for registration an annual financial report for each of the previous years in which such organization was required to file an application for registration or an annual financial report.
(P.A. 86-369, S. 2; P.A. 05-101, S. 1; P.A. 09-102, S. 2; P.A. 10-9, S. 13; P.A. 13-196, S. 9; P.A. 18-40, S. 1; P.A. 23-98, S. 17; 23-99, S. 31; P.A. 25-111, S. 49.)
History: P.A. 05-101 designated existing provisions as Subsec. (a) and amended same to require annual registration, increase registration fee from $20 to $50, establish items to be included in application and make conforming changes, and added Subsec. (b) re noncompliance, Subsec. (c) re late fee, Subsec. (d) re extension of time for filing of annual financial report, Subsec. (e) re failure to register and Subsec. (f) re charitable organizations registered on September 30, 2005, effective June 7, 2005; P.A. 09-102 amended Subsec. (c) to allow commissioner to waive or reduce late fee and amended Subsec. (d) to change time period extension to 6 months from report's due date, effective July 1, 2009; P.A. 10-9 changed “made on forms prescribed by the department” to “in a form prescribed by the commissioner” in Subsec. (a), deleted written notification requirement in Subsec. (b) and deleted written request provision in Subsec. (d), effective May 5, 2010; P.A. 13-196 amended Subsec. (a) to make a technical change and change 5-month deadline for renewal to 11-month deadline, amended Subsec. (c) to delete provision re late fee not including any month during which extension of time was granted, deleted former Subsec. (d) re extension of time for filing of charitable organization's annual financial report and redesignated existing Subsecs. (e) and (f) as Subsecs. (d) and (e), effective June 21, 2013; P.A. 18-40 amended Subsec. (a) by replacing “payment of a fee of fifty dollars” with “a nonrefundable application fee of fifty dollars”, replacing “Two authorized officers” with “An authorized officer”, and deleting provision re signing registration statement, and amended Subsec. (b) by deleting provision re application deemed approved if not notified by department, and replaced provision re time for hearing to be held with provision re hearing in accordance with Ch. 54, effective May 31, 2018; P.A. 23-98 amended Subsec. (a)(3) by adding “or reviewed”, effective June 26, 2023; P.A. 23-99 made an identical change as P.A. 23-98, effective June 29, 2023; P.A. 25-111 amended Subsec. (a)(3) by adding provision re waiver under Sec. 21a-190c(b)(4) and deleted obsolete former Subsec. (e) re registration period for charitable organization registered on September 30, 2005.
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Sec. 21a-190e. Fund-raising counsel. Record and disclosure of contract. Registration of fund-raising counsel. Fees. Bond. Accounting for funds received. (a) Each contract between a charitable organization and a fund-raising counsel shall be in writing and contain such information as will enable the department to identify the services the fund-raising counsel is to provide and the manner of his compensation. Each charitable organization employing a fund-raising counsel shall retain a copy of the contract between such charitable organization and the fund-raising counsel for a period of not less than seven years following expiration of such contract, and shall provide such contract to the department upon a request made by the department for such contract.
(b) A fund-raising counsel who at any time has custody or control of contributions from a solicitation shall register with the department. Applications for registration or renewal of a registration as a fund-raising counsel shall be in a form prescribed by the commissioner and shall be accompanied by a fee in the amount of one hundred twenty dollars. Each fund-raising counsel shall certify that such application or report is true and correct to the best of the fund-raising counsel's knowledge. Each application shall contain such information as the department shall require. Each registration shall be valid for one year and may be renewed for additional one-year periods. An applicant for registration or for a renewal of registration as a fund-raising counsel shall, at the time of making such application, file with and have approved by the department a bond in a form prescribed by the commissioner, in which the applicant shall be the principal obligor in the sum of fifty thousand dollars, with one or more responsible sureties whose liability in the aggregate as such sureties shall be not less than such sum. The fund-raising counsel shall maintain the bond in effect as long as the registration is in effect. The bond shall run to the state and to any person who may have a cause of action against the principal obligor of the bond for any liabilities resulting from the obligor's conduct of any activities subject to sections 21a-190a to 21a-190l, inclusive, or arising out of a violation of said sections or any regulation adopted pursuant to said sections. Any such fund-raising counsel shall account to the charitable organization with which he has contracted for all income received and expenses paid no later than ninety days after a solicitation campaign has been completed, and in the case of a solicitation campaign lasting more than one year, on the anniversary of the commencement of such campaign. Such accounting shall be in writing, shall be retained by the charitable organization for three years and shall be available to the department upon request.
(P.A. 86-369, S. 5; P.A. 89-251, S. 153, 203; P.A. 94-36, S. 29, 42; P.A. 10-9, S. 16; P.A. 25-111, S. 50.)
History: P.A. 89-251 increased the registration fee from $100 to $120; P.A. 94-36 amended Subsec. (b) to eliminate the language requiring “application and payment of fee” from the registration renewal process, effective January 1, 1995; P.A. 10-9 amended Subsec. (a) to add requirement that each contract be filed in form prescribed by commissioner and amended Subsec. (b) to delete requirement that applications be in writing, under oath, and add provisions requiring fund-raising counsel to certify application or report and requiring applications and bond to be in form prescribed by commissioner, effective May 5, 2010; P.A. 25-111 amended Subsec. (a) by deleting provision re fund-raising counsel file contract with department prior to performing any material services pursuant thereto and adding provision re charitable organization retain copy of contract and provide same to department upon request, and amended Subsec. (b) by increasing amount of bond from $20,000 to $50,000 and making a technical change.
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Sec. 21a-190f. Paid solicitors. Registration. Fees. Bond. Filing of contracts. Solicitation notice. Contract requirements. Disclosures at point of solicitation. Prohibited practices. Records. Deposit of funds. (a) No person shall act as a paid solicitor unless such person has first registered with the department. Registration shall be in a form prescribed by the commissioner, shall be certified by the paid solicitor as true and correct to the best of the solicitor's knowledge and shall be accompanied by a fee in the amount of five hundred dollars. The application shall contain such information as the department shall require. Each registration shall be valid for one year and may be renewed for additional one-year periods.
(b) An applicant for registration or for a renewal of registration as a paid solicitor shall, at the time of making such application, file with and have approved by the department a bond in a form prescribed by the commissioner, in which the applicant shall be the principal obligor in the sum of twenty thousand dollars, with one or more responsible sureties whose liability in the aggregate as such sureties shall be no less than such sum. The paid solicitor shall maintain the bond in effect as long as the registration is in effect. The bond shall run to the state and to any person who may have a cause of action against the principal obligor of the bond for any liabilities resulting from the obligor's conduct of any activities subject to sections 21a-190a to 21a-190l, inclusive, or arising out of a violation of said sections or any regulation adopted pursuant to said sections.
(c) Not less than one business day prior to the commencement of each solicitation campaign, a paid solicitor shall file with the department a copy of the contract described in subsection (d) of this section and shall complete a solicitation notice in a form prescribed by the commissioner. A solicitation notice shall be certified by the paid solicitor as true and correct to the best of the solicitor's knowledge and shall include a description of the solicitation event or campaign, the location and telephone number from which the solicitation is to be conducted, the names and residence addresses of all employees, agents or other persons however styled who are to solicit during such campaign and the account number and location of all bank accounts where receipts from such campaign are to be deposited. The charitable organization on whose behalf the paid solicitor is acting shall certify that the solicitation notice and accompanying material are true and complete.
(d) A contract between a paid solicitor and a charitable organization shall be in writing, shall clearly state the respective obligations of the paid solicitor and the charitable organization and shall state the minimum amount that the charitable organization shall receive as a result of the solicitation campaign, which minimum amount shall be stated as a percentage of the gross revenue. Such minimum amount shall not include any amount that the charitable organization is to pay as expenses of the solicitation campaign.
(e) A paid solicitor shall, prior to orally requesting a contribution, and at the same time at which a written request for a contribution is made, clearly and conspicuously disclose at the point of solicitation such solicitor's name as on file with the department and the fact that such solicitor is a paid solicitor.
(f) A paid solicitor shall, in the case of a solicitation campaign conducted orally, whether by telephone or otherwise, send a written confirmation to each person who has pledged to contribute, no more than five days after such person has been solicited, which confirmation shall include a clear and conspicuous disclosure of the information required by subsection (e) of this section.
(g) A paid solicitor shall not represent that any part of the contributions received will be given or donated to any charitable organization unless such organization has consented in writing to the use of its name, prior to the solicitation. Such written consent, if given, shall be signed by two authorized officers, directors or trustees of the charitable organization.
(h) No paid solicitor may represent that tickets to an event are to be donated for use by another, unless the paid solicitor has first obtained a commitment, in writing, from a charitable organization stating that it will accept donated tickets and specifying the number of tickets which it is willing to accept and provided no more contributions for donated tickets shall be solicited than the number of ticket commitments received from the charitable organization.
(i) A paid solicitor shall require any person such solicitor directly or indirectly employs, procures or engages to solicit to comply with the provisions of subsections (e) to (h), inclusive, of this section.
(j) A paid solicitor shall file a financial report for the campaign with the department not more than forty-five days after a solicitation campaign has been completed, and on the anniversary of the commencement of any solicitation campaign that lasts more than one year, in a form prescribed by the commissioner. The financial report shall include gross revenue and an itemization of all expenditures incurred. The report shall be completed on a form prescribed by the department. An authorized official of the paid solicitor and two authorized officials of the charitable organization shall certify that such report is true and complete to the best of their knowledge. The information contained in such report shall be available to the public.
(k) A paid solicitor shall maintain during each solicitation campaign and for not less than three years after the completion of each such campaign the following records: (1) The name and address of each contributor, if known to the paid solicitor, and the date and amount of the contribution; (2) the name and residence of each employee, agent or other person involved in the solicitation; and (3) records of all income received and expenses incurred in the course of the solicitation campaign. The paid solicitor shall make the records required under subdivisions (2) and (3) of this subsection, as well as records containing the dates and amounts described in subdivision (1) of this subsection, available to the department for inspection upon request.
(l) If a paid solicitor sells tickets to an event and represents that tickets will be donated for use by another, the paid solicitor shall maintain, for not less than three years after the completion of such event, the following records, which shall be available to the department for inspection upon request: (1) The name and address of contributors donating tickets and the number of tickets donated by each contributor; and (2) the name and address of all organizations receiving donated tickets for use by others, including the number of tickets received by each organization.
(m) All funds collected by the paid solicitor shall be deposited in a bank account. The bank account shall be in the name of the charitable organization with whom the paid solicitor has contracted and the charitable organization shall have sole or joint control of the account.
(n) Any material change in any information filed with the department pursuant to this section shall be reported in writing or electronically by the paid solicitor to the department not more than seven days after such change occurs.
(o) No person may act as a paid solicitor if such person, any officer or director thereof, any person with a controlling interest therein, or any person the paid solicitor employs, engages or procures to solicit for compensation, has been convicted by a court of any state or the United States of any felony, or of any misdemeanor involving dishonesty or arising from the conduct of a solicitation for a charitable organization or purpose. Any denial, suspension or revocation of the registration of a paid solicitor based on a violation of this subsection shall be made in accordance with the provisions of section 46a-80.
(P.A. 86-369, S. 6; P.A. 89-251, S. 154, 203; P.A. 94-36, S. 30, 42; P.A. 05-101, S. 4; P.A. 10-9, S. 17; P.A. 23-98, S. 15; P.A. 25-111, S. 51.)
History: P.A. 89-251 increased the registration fee from $100 to $120; P.A. 94-36 amended Subsec. (a) to eliminate the “application and payment of the fee” requirements from the registration renewal procedure, effective January 1, 1995; P.A. 05-101 amended Subsec. (a) to increase registration fee to $500, amended Subsec. (c) to require publicizing of solicitation campaign, amended Subsec. (h) to change “shall” to “may” re representation that tickets are to be donated, amended Subsec. (j) to require information contained in report be available to the public, and made technical changes throughout; P.A. 10-9 amended Subsec. (a) to replace provision re applications for registration and renewal to be in writing, under oath, with provision re registration to be in form prescribed by commissioner and certified by paid solicitor, amended Subsec. (b) to add provision requiring bond to be in form prescribed by commissioner, amended Subsec. (c) to make technical changes, add provisions requiring solicitation notice to be in form prescribed by commissioner and certified by paid solicitor, and delete provisions re solicitation notice to be in writing, under oath, and re issuance of press release, amended Subsec. (j) to add provision requiring financial report to be in form prescribed by commissioner and delete requirement that report be signed and under oath, and amended Subsec. (n) to add provision re electronic reporting, effective May 5, 2010; P.A. 23-98 amended Subsec. (c) by substituting “one business day” for “twenty days” and deleting provisions re copies of campaign solicitation literature be submitted to department and commissioner publicize paid charitable solicitation campaign, amended Subsec. (e) by deleting provision disclosure of percentage of gross revenue charitable organization will receive as result of paid solicitation campaign, amended Subsec. (k) by modifying provisions re recordkeeping and disclosures regarding paid solicitation campaigns, and made technical and conforming changes in Subsecs. (c), (e) and (k), effective June 26, 2023; P.A. 25-111 replaced reference to 90 days with 45 days and made technical changes.
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Sec. 21a-190h. Prohibited acts. It shall be a violation of sections 21a-190a to 21a-190l, inclusive, for: (1) Any person to misrepresent the purpose or beneficiary of a solicitation; (2) any person to misrepresent the purpose or nature of a charitable organization; (3) any charitable organization or any person while engaged in the conduct of the affairs of a charitable organization to engage in any financial transaction or nonfinancial conduct that (A) is not related to the accomplishment of the charitable organization's charitable purpose, or (B) jeopardizes or interferes with the ability of the charitable organization to accomplish such organization's charitable purpose; (4) any charitable organization to expend an unreasonable amount of money for management; (5) any person to use or exploit the fact of registration so as to lead the public to believe that such registration constitutes an endorsement or approval by the state; (6) any person to misrepresent that any other person sponsors or endorses a solicitation; (7) any person to use the name of a charitable organization, or to display any emblem, device or printed matter belonging to or associated with a charitable organization without the express written permission of the charitable organization; (8) any charitable organization to use the name which is the same as or confusingly similar to the name of another charitable organization unless the latter organization shall consent in writing to its use; (9) any charitable organization to represent itself as being associated with another charitable organization without the express written acknowledgment and endorsement of such other charitable organization; (10) any person to make any false or misleading statement on any document required by sections 21a-190a to 21a-190l, inclusive; (11) any person to fail to comply with the requirements of sections 21a-190b to 21a-190g, inclusive; (12) any charitable organization to use the services of an unregistered fund-raising counsel or paid solicitor; (13) any fund-raising counsel or paid solicitor to perform any services on behalf of an unregistered charitable organization; or (14) any person to appropriate any property of a charitable organization for a private use.
(P.A. 86-369, S. 8; P.A. 94-165; P.A. 05-101, S. 3; 05-288, S. 221; P.A. 25-111, S. 52.)
History: P.A. 94-165 inserted new Subdiv. (9) re actions of charitable organizations, renumbering remaining Subdivs. as necessary; P.A. 05-101 amended Subdiv. (3) to include any person engaged in the conduct of the affairs of a charitable organization and make a technical change, and added Subdiv. (14) re appropriation of the property of a charitable organization for private use, effective June 7, 2005; P.A. 05-288 made a technical change in Subdiv. (3), effective July 13, 2005; P.A. 25-111 amended Subdiv. (3) by adding provision re nonfinancial conduct, dividing existing provisions into Subparas. (A) and (B) and making technical and conforming changes, and amended Subdiv. (4) by deleting “solicitation or” before “management”.
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Sec. 21a-190i. Investigations. Subpoenas. Court orders. (a) The department, on its own motion or on complaint of any person, may conduct an investigation to determine whether any person has violated or is about to violate any provision of sections 21a-190a to 21a-190l, inclusive.
(b) Notwithstanding any provision of this chapter, the commissioner or the commissioner's authorized representative may subpoena documentary material relating to any matter under investigation, issue subpoenas to any person involved in or who may have knowledge of any matter under investigation, administer an oath or affirmation to any person and conduct hearings on any matter under investigation.
(c) If any person fails to obey any subpoena issued by the commissioner or his authorized representative pursuant to this section, the commissioner may, after notice, apply to the superior court for the judicial district of Hartford, which court, after a hearing thereon, may issue an order requiring such person to obey such subpoena or any part thereof, together with such other relief as may be appropriate. Any disobedience of any order entered under this section by any court shall be punished as a contempt thereof.
(P.A. 86-369, S. 9; P.A. 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; P.A. 93-142, S. 4, 7, 8; P.A. 95-220, S. 4-6; P.A. 25-111, S. 53.)
History: P.A. 88-230 replaced “judicial district of Hartford-New Britain” with “judicial district of Hartford”, effective September 1, 1991; P.A. 90-98 changed the effective date of P.A. 88-230 from September 1, 1991, to September 1, 1993; P.A. 93-142 changed the effective date of P.A. 88-230 from September 1, 1993, to September 1, 1996, effective June 14, 1993; P.A. 95-220 changed the effective date of P.A. 88-230 from September 1, 1996, to September 1, 1998, effective July 1, 1995; P.A. 25-111 amended Subsec. (b) by adding provision notwithstanding any other provision of chapter and made a technical change.
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