FAQs for Charitable Solicitations
1. What is a charitable organization?
“Charitable organization” means a group which hold itself out to be a which is or holds itself out to be a benevolent, educational, voluntary health, philanthropic, humane, patriotic, religious or eleemosynary organization, or for the benefit of law enforcement personnel, firefighters, or other persons who protect the public safety, or any person who solicits or obtains contributions solicited from the public for charitable purposes. “Charitable organization” does not include any authorized individual who solicits, by authority of the organization, solely on behalf of a registered or exempt organization, or on behalf of an organization excluded from the definition of charitable organization.
2. What is a contribution?
“Contribution" means the promise or grant of any money or property of any kind or value, including the payment or promise to pay in consideration of a sale, performance or show of any kind which is advertised or offered in conjunction with the name of any charity. “Contributions” do not include bona fide fees, dues or assessments paid by members, provided that membership is not conferred solely as consideration for making a contribution in response to a solicitation. See T.C.A. §48-101-501(2).
3. What is a solicitation?
"Solicit" or "solicitation" means any oral or written request, however communicated, whether directly or indirectly, for a contribution. See T.C.A. §48-101-501(9).
4. What is a professional solicitor?
"Professional solicitor" means any person who, for a financial or other consideration, solicits contributions for, or on behalf of, a charitable organization, whether such solicitation is performed personally or through such person's agents, servants or employees or through 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, or a person who plans, conducts, manages, carries on or advises a charitable organization in connection with the solicitation of contributions. Any independent marketing agent or entity to whom a professional solicitor assigns fund raising or solicitation responsibilities shall be deemed to be a professional solicitor for purposes of this part. A salaried officer or permanent employee of a charitable organization is not deemed to be a professional solicitor. However, any salaried officer or employee of a charitable organization that engages in the solicitation of contributions for compensation in any manner for more than one (1) charitable organization is deemed a professional solicitor. A professional solicitor does not include an attorney, investment counselor, or banker who in the conduct of such person's profession advises a client. See T.C.A. §48-101-501(7).
5. What is a professional fundraising counsel?
"Professional fund raising counsel" means any person who, for compensation, plans, manages, advises, consults or prepares material for a charitable organization for the solicitation of contributions in this state, but who does not solicit contributions and does not employ, procure, or engage any person to solicit contributions on behalf of a charitable organization. "Professional fund raising counsel" does not include an attorney, investment counselor, bona fide salaried officer, employee, volunteer, or banker who in the conduct of such person's profession advises a client. See T.C.A. §48-101-501(6).
6. What is a commercial co-venturer?
A commercial co-venturer is any person who is organized for profit; is regularly and primarily engaged in trade or commerce, other than in connection with soliciting for charitable or civic organizations or charitable purposes; and conducts an advertised charitable sales promotion for a specific limited period of time. The charitable organization being promoted by the co-venturer must be duly registered or be exempt from registration with the Division of Charitable Solicitations. Commercial co-venturers are required to have a written agreement with the charitable organization on whose behalf the sales promotion is to be conducted. Such co-venturers are also required to keep all records in connection with the charitable sales promotion for no less than three (3) years after the end date of the promotion.
7. How can I check the status of a charitable organization’s registration?
You may check the status of your organization’s registration by contacting the Division of Charitable Solicitations and Gaming at (615)741-2555 visiting the division’s website, or e-mailing the division at charitable.solicitations@state.tn.us.
8. What charitable organizations are exempt from registration?
Organizations that are exempt from the registration requirements of the Act include religious institutions and affiliated groups; educational institutions and supporting organizations; volunteer fire departments, rescue squads and local civil defense organizations; political parties, candidates, and Political Action Committees; hospitals; corporations that were established by an Act of Congress (such as the Red Cross); and organizations that receive annual contributions less than $30,000. Groups that claim to be exempt purely because they receive annual contributions less than $30,000 are required to complete and file an “Exemption Request” form.
9. How does an organization register with the division?
In order to register with the division, an organization must file an Application for Registration of a Charitable Organization, along with its organizing documents (e.g. a charter) and, if it has obtained one, a letter of determination of tax exempt status from the IRS. Additionally, if an organization has completed a fiscal year of operation, it must file an Application for Registration Renewal form, Summary of Financial Activities form, an IRS form 990 (if the organization is required to file such), and an audited financial statement if its revenues exceed $500,000.
10. How much is the registration?
The initial registration fee is $50 dollars. The fee for renewing your registration is based on the following scale:
GROSS REVENUES |
FEES |
0 – 48,999.99 |
$100 |
49,000 – 99,999.99 |
$150 |
100,000 – 249,999.99 |
$200 |
250,000 – 499,999.99 |
$250 |
500,000 and above |
$300 |
12. When must an organization renew its registration?
Your organization needs to file all the required information with the Secretary of State within six months of the close of your fiscal year. Your registration expires on the last day of that 6th month.
13. What happens if my organization’s renewal registration application is late?
If your application is late, your organization will be charged a twenty-five dollar ($25) late fee for each month, or portion of a month, until your complete application is filed. The late fee should accompany your application when you submit it to the division. In addition to the late fee, your organization is subject to the imposition of civil penalties.
14. What can I do if my application for registration is denied?
Your organization can ask for a hearing. The request must be made within 7 days of the date you receive notification that your application has been denied. A hearing shall occur within 7 days of receiving your request for a hearing. A determination shall be reached within 3 business days of your hearing.
15. What are the penalties if my organization violates the Charitable Solicitations Act?
Anyone who willfully and knowingly violates any provision of the Charitable Solicitations Act, or willfully and knowingly gives false or incorrect information in filing statements or reports to the secretary of state commits a Class B misdemeanor for the first offense. The second or any further offense is considered a Class E felony. Additionally, civil penalties up to $5,000 may be imposed for each and any violation.
16. Does your office grant extensions on filing?
Yes, for good cause shown (e.g. application for extension to file an exempt organization return that was filed with the IRS), the division may extend the time for filing a renewal application for a period not to exceed ninety (90) days, during which time the previous registration remains in effect.
17. Do we have to submit a ten year employment history for the control person(s)?
Yes. Each organization must submit a brief, ten year employment history of the control person(s). An employment history is not required for any other individuals associated with the organization.
18. Does it matter which officers sign the form?
Yes. The registration renewal statement shall be signed by two (2) authorized officers of the charitable organization, one of whom shall be the chief fiscal officer
19. The organization does not have a 501(c)(3) letter, how do we get one?
Only the IRS grants federal tax exemption status. Contact information and detailed explanations of the tax exemption approval process can be found at www.irs.gov
