Professional Solicitors
A "Professional Solicitor" is defined as 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.
Professional solicitors are required to register each year with the Secretary of State. Registrations must be renewed no later than December 31 of each year. The registration process includes completing an application, paying a fee, and providing the State with the name of each charitable organization with which it has contracted to raise money in Tennessee. The contract must specify the beginning and ending date for its campaign, which cannot exceed one year.
Pursuant to Tennessee Code Annotated Section 48-101-513, the following must be submitted to the Division of Charitable Solicitations and Gaming prior to the commencement of each solicitation campaign:
1) A completed Solicitation Campaign Notice, including a list with the names and resident addresses of each employee or other person working on the campaign.
2) A true copy of any written agreement or contract which may have been entered into between the charitable organization and the professional solicitor, which shall state the minimum amount or percentage, if any, which the charitable organization shall receive of revenues solicited, after solicitation expenses as a result of the solicitation campaign.
3) Copies samples of each type of solicitation campaign literature or promotional materials (e.g. scripts, mail, fulfillment literature, etc.) utilized in the campaign.
Further, a professional solicitor shall, prior to orally requesting a contribution and at the same time a written request for a contribution is made, clearly and conspicuously disclose at the point of solicitation the solicitor’s name as on file with the Division of Charitable Solicitation and Gaming and that the solicitation is being conducted by a “paid solicitor”. In the case of a solicitation campaign conducted orally, professional solicitors are required to send written confirmation to each person who has contributed or pledged to contribute within five (5) days after that person has been solicited. The written confirmation shall include the above disclosure.
In the case of events to which tickets are being donated to a charitable organization, the professional solicitor is responsible for attaining a written commitment from the charitable organization stating that they will accept donated tickets and specifying the number of tickets they are willing to accept. No more contributions for donated tickets than will be accepted may be solicited by the professional solicitor.
Finally, pursuant to Tennessee Code Annotated Section 48-101-507 (d)(1), a professional solicitor shall file a financial report for a solicitation campaign with the Division of Charitable Solicitations and Gaming within ninety (90) days after the completion of the campaign, or after the end of the fiscal year end of any campaign that lasts more than one (1) year. The Financial report shall be audited by an independent certified public accountant, unless the professional solicitor is exempt from such requirement, pursuant to Tennessee Code Annotated Section 48-101-507 (d)(3).
