Charitable organizations; disclosure requirements for solicitation materials; violation; codification; effective date.
The bill amends the existing statutes under the Oklahoma Solicitation of Charitable Contributions Act, providing a framework for increased scrutiny and compliance by charitable entities. It sets up a structured reporting mechanism that allows the public access to registered information, thereby potentially improving donor confidence in charitable solicitations. The changes also empower the Attorney General and district attorneys to enforce penalties for violations, emphasizing the importance of lawful solicitation practices.
House Bill 2363 aims to enhance the transparency and accountability of charitable organizations operating in Oklahoma. It establishes new disclosure requirements for solicitation materials used by charitable organizations and professional fundraisers, specifically those with gross revenues of $1,000,000 or more. The bill mandates that these organizations disclose their legal name, any trade names, the intended use of funds, and the percentage of contributions remaining in Oklahoma upon request. Moreover, a uniform disclosure statement regarding registration with the Secretary of State must also be provided on all solicitation materials.
Community sentiment surrounding HB 2363 reflects both support for enhancing fundraising integrity and concerns about the regulatory burden it may impose on smaller charities. Proponents argue that the bill will protect donors and ensure that funds are used appropriately, while opponents worry that the increased requirements could make it difficult for smaller organizations to operate efficiently and effectively raise funds.
Notable points of contention include the balance between protecting donors and imposing regulations that might stifle charitable activities. Some stakeholders, particularly smaller charities, fear that the financial and administrative burdens of compliance could hinder their ability to solicit donations, thereby impacting their valuable work in the community. The bill's supporters contend that without a solid regulatory framework, there is too much risk for fraud and mismanagement in a sector where trust is paramount.