The Law of Fundraising -- Contents -- Preface -- 1 Government Regulation of Fundraising for Charity -- 1.1 Charitable Sector and American Political Philosophy -- 1.2 Charitable Fundraising: A Portrait -- 1.3 Evolution of Government Regulation of Fundraising -- 1.4 Contemporary Regulatory Climate -- 2 Anatomy of Charitable Fundraising -- 2.1 Scope of Term Charitable Organization -- 2.2 Methods of Fundraising -- (a) Annual Giving Programs -- (b) Special-Purpose Programs -- (c) Estate Planning Programs -- (d) Reasonable Costs of Fundraising -- (i) Direct-Mail Acquisition -- (ii) Direct-Mail Renewal -- (iii) Special Events and Benefits -- (iv) Corporations and Foundations -- (v) Planned Giving -- (vi) Capital Campaigns -- 2.3 Role of Fundraising Professional -- (a) Types of Professional Fundraisers -- (b) Growth toward a Profession -- (c) Professional Associations -- (d) Accreditation and Certification -- (e) Standards of Conduct and Professional Practice -- 2.4 Role of Accountant -- (a) Generally Accepted Accounting Principles -- (b) Financial Reporting Requirements -- (c) Financial Management -- 2.5 Role of Lawyer -- 2.6 Viewpoint of Regulators -- 2.7 Viewpoint of a Regulated Professional -- 2.8 Coping with Regulation: A System for the Fundraising Charity -- (a) Monitoring of Compliance Requirements -- (b) Public Relations -- (c) Record Keeping and Financial Data -- 3 States' Charitable Solicitation Acts -- 3.1 Summary -- 3.2 Definitions -- (a) Charitable -- (b) Charitable Organization -- (c) Solicitation -- (d) Sale -- (e) Contribution -- (f) Membership -- (g) Professional Fundraiser -- (h) Professional Solicitor -- (i) Fundraising -- (j) Commercial Coventurer -- (k) Administrative Agency -- 3.3 Preapproval -- 3.4 Annual Reporting -- 3.5 Exemptions -- (a) Churches -- (b) Other Religious Organizations.

(c) Educational Institutions -- (d) Libraries -- (e) Museums -- (f) Health Care Institutions -- (g) Other Health Care Provider Organizations -- (h) Membership Organizations -- (i) Small Solicitations -- (j) Solicitations for Specified Individuals -- (k) Political Organizations -- (l) Veterans' Organizations -- (m) Named Organizations -- (n) Other Categories of Exempted Organizations -- 3.6 Regulation of Professional Fundraisers -- 3.7 Regulation of Professional Solicitors -- 3.8 Regulation of Commercial Coventurers -- 3.9 Limitations on Fundraising Costs -- 3.10 Availability of Records -- 3.11 Contracts -- 3.12 Registered Agent Requirements -- 3.13 Prohibited Acts -- 3.14 Regulatory Prohibitions -- 3.15 Disclosure Statements and Legends -- 3.16 Reciprocal Agreements -- 3.17 Solicitation Notice Requirements -- 3.18 Fiduciary Relationships -- 3.19 Powers of Attorney General -- 3.20 Miscellaneous Provisions -- 3.21 Sanctions -- 3.22 Unified Registration -- 3.23 Other Laws -- 3.24 Prospect of Law Changes -- 4 State Regulation of Fundraising -- 4.1 Regulation of Fundraising Costs -- (a) The Disclosure Dilemma -- (b) The Fundraising Cost Percentage Approach -- (c) Fundraising Cost Line Item Approach -- (d) Floating Average Approach -- (e) Pluralization Approach -- (f) Average Gift Size Factor -- (g) Regulated Disclosure Approach -- (h) Factors Affecting Fundraising Costs -- (i) Period of Existence -- (ii) Programs and Purposes -- (iii) Constituency -- (iv) Methods of Fundraising -- (v) Average Gift Size -- (vi) Unforeseen Circumstances -- (vii) Other Factors -- (i) Joint Cost Allocations -- (i) Overview -- (ii) SOP 98-2 Factors and Criteria -- (iii) Allocating Costs under SOP 98-2 -- 4.2 Police Power -- 4.3 Fundraising as Free Speech -- (a) State of Law before 1980 Supreme Court Decision.

(b) Free Speech Principles in Fundraising Context -- (i) Schaumburg Case -- (ii) Munson Case -- (iii) Riley Case -- (iv) Dissents -- (v) Subsequent Litigation -- (c) State of Law Subsequent to Supreme Court Decisions -- (d) Airport Terminal Solicitations -- (e) Door-to-Door Advocacy -- (f) Outer Boundaries of Doctrine -- (g) Interplay between Fundraising Regulation and Prosecution of Fraud -- (i) Facts -- (ii) State Supreme Court Decision -- (iii) Attorney General's Petition for Review -- (iv) Opposition to Petition -- (v) Reply Brief in Support of Petition -- (vi) Amicus Brief -- (vii) Court Opinion -- 4.4 Due Process Rights -- 4.5 Equal Protection Rights -- 4.6 Delegation of Legislative Authority -- 4.7 Treatment of Religious Organizations -- (a) Basic Concepts -- (b) Constitutionality of Exemption -- 4.8 Other Constitutional Law Issues -- 4.9 Exemption for Membership Groups -- 4.10 Defining Professional Fundraiser and Professional Solicitor -- 4.11 Direct-Mail Fundraising Guidelines -- 4.12 Registration Fees -- 4.13 Fundraising Over Internet -- (a) Internet Fundraising in General -- (b) Charleston Principles -- (i) General Principles -- (ii) Definitions -- (iii) Other Principles -- (iv) "Exclusions" -- (v) Responsibilities for Multistate Filers -- (c) Internet Fundraising-Some Specifics -- 4.14 Conclusions -- 5 Federal Regulation of Fundraising -- 5.1 Federal Regulation of Fundraising: How It All Began -- (a) History -- (b) Special Emphasis Program -- (c) Checksheet -- (d) Audit Guidance -- (e) Conclusion -- 5.2 Fundraising Disclosure by Charitable Organizations -- 5.3 Charitable Gift Substantiation Requirements -- 5.4 Quid Pro Quo Contribution Rules -- 5.5 Fundraising Disclosure by Noncharitable Organizations -- 5.6 Intermediate Sanctions -- (a) Basic Concepts of Intermediate Sanctions.

(i) Exempt Organizations Involved -- (ii) Excess Benefit Transactions -- (iii) Revenue-Sharing Transactions -- (iv) Rebuttable Presumption of Reasonableness -- (v) Disqualified Persons -- (vi) Initial Contract Exception -- (vii) Tax Structure -- (viii) Correction -- (ix) Reporting of Excess Benefit Transactions -- (x) Scope of Sanctions -- (xi) Additional Penalties -- (b) Intermediate Sanctions Rules as Applied to Fundraising -- (i) Tax-Exempt Organizations Involved -- (ii) Disqualified Persons in Fundraising Context -- (iii) Excess Benefit Transactions in Fundraising Context -- (iv) Initial Contract Exception -- (v) Rebuttable Presumption of Reasonableness -- (vi) Reporting of Excess Benefit Transactions -- (vii) Tax Penalties -- (viii) Third-Party Summons: Statute of Limitations -- 5.7 Unrelated Business Rules -- (a) Basic Concepts of Unrelated Income Taxation -- (i) Introduction -- (ii) Deduction Rules -- (iii) Trade or Business -- (iv) Regularly Carried On -- (v) Substantially Related -- (vi) Exceptions -- (vii) Modifications -- (viii) Partnership Rule -- (b) Unrelated Income Rules as Applied to Fundraising -- (i) Fundraising as Business -- (ii) Regularly Carried-On Test -- (iii) Private Benefit -- (iv) Fundraising and Program Activities -- (v) Principal-Agent Relationships -- (vi) Royalty Exception -- (vii) Commercial Coventures -- (viii) Cause-Related Marketing -- (ix) Corporate Services -- 5.8 Exemption Application Process -- (a) Recognition of Tax-Exempt Status -- (b) Application Procedure -- (c) Application -- (i) Part I -- (ii) Part II -- (iii) Part III -- (iv) Part IV -- (v) Part V -- (vi) Part VI -- (vii) Part VII -- (viii) Part VIII -- (ix) Part IX -- (x) Part X -- (xi) Part XI -- (xii) Summary -- (d) Exceptions -- 5.9 Reporting Requirements -- 5.10 Lobbying Restrictions -- 5.11 Public Charity Classifications.

(a) Public Charities in General -- (b) Public Support Rules -- (c) Supporting Organizations -- 5.12 School Record-Retention Requirements -- 5.13 Fundraising Compensation Arrangements -- 5.14 Charitable Deduction Rules -- (a) Meaning of Gift -- (b) Qualified Donees -- (c) Gift Properties -- (d) Percentage Limitations -- (e) Limitation on Itemized Deductions -- (f) Deduction Reduction Rules -- (g) Twice-Basis Deductions -- (h) Partial Interest Gifts -- (i) Gifts of Certain Fractional Interests -- (j) Record-Keeping Requirements -- (k) Appraisal Requirements -- (l) Reporting Requirements -- (m) Contributions of Intellectual Property -- (n) Contributions of Qualified Vehicles -- (o) Noncharitable Donees -- 5.15 Commensurate Test -- (a) Facts -- (b) Law and Analysis -- (i) Allocations -- (ii) Commensurate Test -- (iii) Private Benefit Standard -- (iv) Substantial Nonexempt Purpose Test -- (c) Perspective -- (d) IRS's Charitable Spending Initiative -- 5.16 Special Events and Corporate Sponsorships -- (a) Special Events -- (b) Donor Recognition Programs -- (i) Introduction -- (ii) Qualified Sponsorship Payments -- 5.17 Appraisers and Penalties -- (a) Taxpayer Penalties -- (b) Aiding and Abetting Penalty -- (c) Appraisals and Appraisers -- 5.18 Postal Laws -- (a) Introduction -- (b) Qualifying Organizations -- (i) Religious Organizations -- (ii) Educational Organizations -- (iii) Philanthropic Organizations -- (iv) Other Categories -- (v) Qualified Political Committees and State or Local Voting Registration Officials -- (c) Nonqualifying Organizations -- (d) Application for Authorization -- (e) Eligible and Ineligible Matter -- (f) Postage Statement -- (g) Rate Increases in 2013 -- 5.19 Antitrust Laws -- 5.20 Securities Laws -- 5.21 FTC Telemarketing Rules -- 5.22 Internet Communications -- (a) Introduction.

(b) IRS Request for Comments.