Charities and Fundraisers FAQs

Contents
Account Management
Contract Elements Required by Law
Definitions
Disclosure Requirements
Donors and Consumers
eFiling and Other Filing Questions
Fees and Payment
Filing Notice Schedule
Public benefit corporations & benefit corporations
Registration

 

Disclosure Requirements Under the Colorado Charitable Solicitations Act

Q1.  What do paid solicitors have to disclose in written solicitations? [1]

A1.
  Paid solicitors must disclose the following in all written solicitations:
    • The employer of the individual paid solicitor who directly communicated with the contributor.  You must include the full legal name, address, telephone number, and registration number of the employer.
    • A disclosure that the contribution is not tax-deductible, if applicable.
    • If the solicitor maintains that the contribution is tax-deductible, a disclosure stating the portion of the contribution that is tax-deductible.
    • A disclosure identifying the paid solicitor as a paid solicitor.

      The disclosure must:

        • Be in capital letters.

        • Be in 10-point type or larger.

        • Be in boldface type.

        • Contain the following: "Registration by the secretary of state is not an endorsement of either the paid solicitor or the organization or cause the solicitor represents."

    • If the solicitation is or was conducted from a telephone room or other location that is different than the employer information provided above, include the address and telephone number of the telephone room or other location. This information does not need to be provided if telephone solicitations are being conducted from more than one location or from the residence of the individual paid solicitor.
    • The name, address, telephone number, and registration number of any charitable organization connected with the solicitation.
    • The name, address, telephone number, and registration number of any organization whose name or symbol has been used in aid of or in the course of the solicitation.
    • The name and address of the contributor, or spaces where the contributor can fill in this information.
    • The date of the individual solicitation, or spaces where the contributor can fill in this information.

    • A statement that Colorado residents may obtain copies of registration and financial documents from the Secretary of State’s office.  Include a current telephone number and website address for the Secretary of State.

 

Q2.  What do paid solicitors and volunteers have to disclose during solicitations by telephone? [2]
A2.  In addition to any other disclosure required for solicitations by telephone [3], a paid solicitor who makes an oral solicitation by a telephone call received in Colorado must make the following oral disclosures as part of the telephone solicitation:
    • A statement that the person soliciting the charitable contribution by telephone is paid to make the solicitation.
    • The name of the telemarketing company that employs the paid solicitor.
    • The name and telephone number of the charitable organization on whose behalf the paid solicitor is making the contribution.

    • The first name and surname of the paid solicitor, which must be given in the opening greeting.
    • A statement, which must be made prior to the person’s agreement to make a contribution, that the charitable contribution is not tax-deductible, if applicable.  This provision also applies to volunteers.
    • Upon request, the percentage of the contribution that will be paid to the charitable organization must be disclosed.

    • Upon request, the registration numbers of the charitable organization and the paid solicitor must be disclosed.

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Q3.  What must be disclosed in solicitations by container? [4]
A3.  Any container offering a product for sale or distribution in a public place for solicitation purposes must be affixed with a disclosure label conspicuously displaying the following information (must be typed or printed and clearly legible):
    • The percentage of annual contributions that are paid to any person or organization to maintain, service, or collect the contributions deposited in all the containers used by the person or charitable organization.
    • The percentage of annual contributions that are paid to the charitable organization named on the container.
    • Whether the person maintaining, servicing, or collecting the contributions deposited in the container is a volunteer or is paid for the services.
If a container
    • is placed in a public location for solicitation purposes by a person other than a 501(c)(3) organization, and
    • items placed in the container will not all be directed to a charitable purpose, or
    • if the items are sold, not all proceeds will be directed to a charitable purpose,
then a disclosure label must be affixed to the container that clearly and conspicuously displays the following:
"DONATED ITEMS WILL BE SOLD FOR PROFIT. The value of items placed in this container is NOT tax-deductible."

This does not apply to containers used exclusively for the collection of used paper, cardboard, motor oil, bottles, cans, or other containers or materials for recycling or waste diversion purposes.
"Container" means a box, carton, package, receptacle, canister, jar, dispenser, or machine.

 

Q4.  What do commercial coventurers have to disclose in charitable sales promotions? [5]

A4.  If a commercial coventurer reasonably expects that more than 50% of all proceeds of a charitable sales promotion will be derived from transactions within the state of Colorado, then the following applies:
Each advertisement for a charitable sales promotion must disclose the dollar amount or percent per unit of goods or services purchased or used that will benefit the charitable organization or purpose. If the actual dollar amount or percentage cannot reasonably be determined prior to the final date of the charitable sales promotion, the commercial coventurer must disclose an estimated dollar amount or percentage.
A commercial entity that purchases at wholesale a product which is created, manufactured, or produced by a charitable organization for resale to the general public as part of the commercial entity's general stock of merchandise is exempt from the provisions of this article.

 

Q5.  What do paid solicitors have to disclose in written confirmations of contributions? [6] 
A5.  A paid solicitor who makes any type of oral solicitation must provide a written confirmation of the expected contribution to each contributor.  The confirmation must be provided before collecting or attempting to collect any contribution.
The confirmation must include the following:
    • The employer of the individual paid solicitor who directly communicated with the contributor.  You must include the full legal name, address, telephone number, and registration number of the employer.
    • A disclosure that the contribution is not tax-deductible, if applicable.
    • If the solicitor maintains that the contribution is tax-deductible, a disclosure stating the portion of the contribution that is tax-deductible.
    • A disclosure identifying the paid solicitor as a paid solicitor.

      The disclosure must:

        • Be in capital letters.

        • Be in 10-point type or larger.

        • Be in boldface type.

        • Contain the following: "REGISTRATION BY THE SECRETARY OF STATE IS NOT AN ENDORSEMENT OF EITHER THE PAID SOLICITOR OR THE ORGANIZATION OR CAUSE THE SOLICITOR REPRESENTS."

    • If the solicitation is or was conducted from a telephone room or other location that is different than the employer information provided above, include the address and telephone number of the telephone room or other location. This information does not need to be provided if telephone solicitations are being conducted from more than one location or from the residence of the individual paid solicitor.
    • The name, address, telephone number, and registration number of any charitable organization connected with the solicitation.
    • The name, address, telephone number, and registration number of any organization whose name or symbol has been used in aid of or in the course of the solicitation.
    • The amount of any expected monetary contribution
    • The name and address of the contributor, or spaces where the contributor can fill in this information.
    • The date of the individual solicitation, or spaces where the contributor can fill in this information.
    • A statement that Colorado residents may obtain copies of registration and financial documents from the Secretary of State’s office.  Include a current telephone number and website address for the Secretary of State.
If the contributor is absent when the contribution is to be collected, the paid solicitor can comply with the written confirmation requirements by providing the written confirmation in a manner previously agreed upon between the paid solicitor and the contributor.

 

[1] 6-16-105(3), C.R.S. 
[2]
6-16-105.3(1), C.R.S.
[3]
6-16-105, C.R.S.
[4] 6-16-105.5, C.R.S.
[5]
6-16-110, C.R.S.
[6] 6-16-105(1), C.R.S.

 

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