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This blog is a summary of compliance rules and environment review of the State of South Carolina for Professional Fundraisers (known as Professional Solicitors in South Carolina).
In this post, we’ll explore the following:
From 2022 to 2023, South Carolina levied over $654,720 in fines against commercial co-ventures (CCVs), professional solicitors, and charities.
There were 578 South Carolina state regulatory actions against Professional Fundraisers.
South Carolina takes compliance seriously and will track you down if you operate in their state without registering and filling out the required forms.
From our own experience, South Carolina has minimal patience for Professional Fundraisers or larger, established charities and businesses that fail to register and report information as commercial co-ventures (CCVs).
South Carolina does, however, have a fairly good “amnesty” program, which, while not official policy, is clearly part of ongoing de facto policies.
If you are not compliant and you come clean, they usually (but not always) let you avoid fines and just get caught up on fees and reporting.
If South Carolina discovers you’re not compliant, you’re more likely to pay fines in addition to filing fees.
If you’re deemed a habitual violator of noncompliance, South Carolina will come after you and make it hurt.
So, if you are not compliant: get compliant and avoid the pain.
Note, too, that South Carolina requires a surety bond from any registered Professional Solicitors.
Based on the above information and our professional experience with the State of South Carolina, our Change Regulatory Environment Rating for South Carolina is:
Rating: Aggressive
South Carolina asserts its legal jurisdiction over professional solicitors who engage in charitable solicitation within the state’s borders.
This means that any individual or organization soliciting charitable contributions from residents of South Carolina must comply with the state's laws and regulations, regardless of where the solicitor is based or what method the solicitor uses to solicit donations.
Note that South Carolina calls Professional Fundraisers “Professional Solicitors.”
According to Section 33-56-20 of the South Carolina Code, the definition of a Professional Solicitor is as follows:
“Professional solicitor” means a person who, for monetary consideration, solicits contributions for or on behalf of a charitable organization, whether the solicitation is performed personally or through its agents, servants, or employees specially employed by or for a charitable organization, who are engaged in the solicitation of contributions under the direction of such person.
“Professional solicitor” also means a person who plans, conducts, manages, carries on, advises, or acts as a consultant to a charitable organization in connection with the solicitation of contributions but does not qualify as “professional fund-raising counsel” within the meaning of this chapter.
A bonafide salaried officer, unpaid director, or a bonafide full-time employee of a charitable organization or a part-time student employee of an educational institution is not considered to be a professional solicitor.
In summary, if you are helping a charity raise money (as a business or individual) and you are not an employee of the charity, but the charity is paying you any consideration for your efforts, you are a Professional Solicitor.
The state of South Carolina requires the following filings:
Below are the detailed links and instructions for each required filing.
Professional Solicitors must file a Registration Application with the Secretary of State’s Office prior to any solicitation activity and on an annual basis.
Note this disclosure section at the bottom:
I certify that the information furnished in this application, and all attached supplementary information is true and correct to the best of my knowledge, information and belief. I understand that the giving of false or incorrect information may constitute a misdemeanor carrying a penalty upon conviction of a fine of not more than two thousand dollars ($2,000.00) or imprisonment for not more than one year, or both, for a first offense. A second or subsequent offense may constitute a felony carrying a penalty upon conviction of a fine of not more than five thousand dollars ($5,000.00) or imprisonment of not more than five years, or both.
Professional solicitors must submit a $15,000 surety bond payment to the Secretary of State’s Office before any solicitation activity and annually thereafter.
Professional solicitors must file a Notice of Solicitation and all contracts they have with charitable organizations.
Professional solicitors must submit a Joint Financial Report for each solicitation campaign, in partnership with the relevant charity.
South Carolina files an annual monitoring report on Professional Fundraising. This report includes names, campaigns, and charities involved.
The report, and its accompanying details, is one of the most thorough reports we’ve seen on state regulations, monitoring, and compliance for professional fundraisers and solicitors.
You’ll find the report here.
Change has an all-in-one solution for businesses that raise money for charities via sweepstakes, auctions, events, raffles, and direct contact.
Change allows you to:
South Carolina takes legal compliance for Professional Fundraisers (Professional Solicitors in South Carolina) seriously.
Use the resources above to ensure you are compliant.
You might also consider using Change to manage ongoing compliance and automate your back-office functions (including payouts, reporting, and expense ratio management) with the charities you work with.
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