Researcher: JSB Page 1 3/25/21
OLR Bill Analysis
HB 6217
AN ACT INCREASING TRANSPARENCY FOR CHARITABLE
ORGANIZATIONS.
SUMMARY
This bill requires Department of Consumer Protection (DCP)-
registered charitable organizations, when soliciting, to disclose (1) their
registration number and (2) the percentage of funds they collected in
the prior calendar year that directly funded their charitable purpose
(see BACKGROUND). This information must also be provided upon
anyone’s request.
The bill also requires registered charitable organizations to
conspicuously display their registration number on printed
advertisements.
By law, unchanged by the bill, charitable organizations (whether a
person or a legal entity) receiving at least $50,000 in donations
annually generally must register with DCP. The law exempts certain
organizations from registration, such as the following:
1. duly organized religious corporations, institutions, or societies;
2. parent-teacher associations;
3. educational institutions meeting certain curricula requirements;
4. licensed nonprofit hospitals;
5. domestic governmental units or instrumentalities; and
6. charitable organizations that normally receive less than $50,000
in contributions annually, and do not pay anyone to primarily
solicit (CGS § 21a-190d). 2021HB-06217-R000133-BA.DOCX
Researcher: JSB Page 2 3/25/21
The bill also makes technical changes.
EFFECTIVE DATE: January 1, 2022
BACKGROUND
Charitable Purpose
By law, “charitable purpose” means any benevolent, educational,
philanthropic, humane, scientific, patriotic, social welfare or advocacy,
public health, environmental conservation, civic, or eleemosynary
objective.
Solicitation
By law, “solicitation” is defined broadly and includes a direct or
indirect request to benefit a charitable organization, for money, credit,
property, financial assistance, or other thing of any kind or value. It
includes oral and written requests (e.g., by newspaper, television,
telephone, or handbill) and offerings of merchandise, subscriptions,
memberships, candy, flowers, or other tangible items on the premise
that some of the proceeds will be used for a charitable purpose.
COMMITTEE ACTION
General Law Committee
Joint Favorable
Yea 19 Nay 0 (03/09/2021)