In this post, we’ll explore the following:
According to Alabama Code § 13A-9-70 (1996), the Attorney General of Alabama oversees the regulation of Professional Fundraisers, ensuring diligent enforcement and close monitoring of activities.
Non-compliance can lead to significant fines and legal actions.
While Alabama isn't particularly aggressive in publicizing noncompliance, the State Attorney General does monitor campaigns and will impose fines on Professional Fundraisers who fail to register or file required reports. If non-compliance is detected, fines and penalties are likely.
Therefore, it's crucial to ensure compliance as soon as possible to avoid these consequences.
Additionally, Alabama requires a $10,000 surety bond for any registered Professional Fundraisers.
Based on the above information and our professional experience with the State of Alabama, our Change Regulatory Environment Rating for Alabama is:
Rating: Average
Based on Alabama Code § 13A-9-70 (1996), the Attorney General of Alabama is responsible for regulating Professional Fundraisers.
Alabama asserts its legal jurisdiction over Professional Fundraisers who engage in charitable solicitation within the state’s borders. This means any individual or organization soliciting charitable contributions from residents of Alabama must comply with the state's laws and regulations, regardless of where the solicitor is based.
According to Alabama regulations, a Professional Fundraiser is:
"Any person who for compensation or other consideration plans, conducts, manages, or carries on any drive or campaign in this state for the purpose of soliciting contributions for or on behalf of any charitable organization or any other person, or who engages in the business of, or holds himself or herself out to persons in this state as independently engaged in the business of soliciting contributions for such purposes. A bona fide officer or employee of a charitable organization is not a professional fundraiser unless his or her salary or other compensation is computed on the basis of funds to be raised, or actually raised. This section shall not apply to persons who solicit political campaign contributions on behalf of candidates for public office or initiatives on a ballot."
Keep in mind that the term “person” here is a “legal” person, which includes legal entities, businesses, individuals, etc.
As is the case in every state that we track, if you are engaging Alabama residents in a campaign (via online activities, as an example), regardless of your location, you are regarded as being subject to Alabama regulations.
Note also that Alabama considers any contractor a Professional Solicitor and Professional Solicitors can only work with registered Professional Fundraisers.
The state of Alabama requires the following filings:
Below are the links and instructions for each required filing.
Professional Fundraisers must provide their full legal business name, address, Federal Employment Identification Number, email, and phone number, among other things.
Professional Fundraisers must submit a copy of each contract with the charitable organization.
Professional Fundraisers must file a closing statement with the Attorney General disclosing gross receipts and all expenditures incurred in the performance of the contract.
Change offers an all-in-one solution for businesses fundraising for charities through sweepstakes, auctions, events, raffles, and direct contact. With Change, you can:
Alabama takes legal compliance for Professional Fundraisers seriously. Utilize the resources above to ensure compliance. Consider using Change to manage ongoing compliance and streamline back-office functions, including payouts, reporting, and expense ratio management with the charities you work with.
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