Tennessee Senate Bill SB1661

Tennessee 2023-2024 Regular Session

• Introduced: 1/8/24
• Chaptered: 3/19/24
• Passed: 3/19/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 48, Chapter 101, Part 5, relative to charitable organizations.

Impact

The proposed legislation has the potential to significantly alter how charitable organizations operate within Tennessee. By imposing more rigorous registration and reporting requirements, SB1661 aims to increase transparency and accountability among organizations soliciting funds from the public. Organizations that solicit contributions exceeding $50,000 annually are now required to register and report to the Secretary of State, ensuring that these entities are reviewed and monitored for compliance. This change may impact smaller organizations disproportionately, potentially limiting their fundraising capabilities if they cannot adhere to these new regulations without sufficient resources.

Summary

Senate Bill 1661 aims to amend certain provisions within the Tennessee Code Annotated concerning the regulation of charitable organizations and their solicitation practices. It seeks to establish clearer definitions regarding what constitutes a charitable organization, as well as delineate the responsibilities of such organizations in soliciting contributions from the public. The bill introduces stricter regulations regarding the reporting requirements for these organizations and outlines civil penalties for those who fail to comply with the established protocols. Furthermore, it enhances the role of the Secretary of State in overseeing these organizations and maintaining compliance.

Sentiment

The sentiment around SB1661 appears to be mixed, with support primarily from those advocating for increased accountability and transparency in charitable solicitations. Proponents argue that stricter regulations are necessary to protect the public from fraud and to ensure that donations are utilized effectively. Critics, however, express concerns about the potential burden on smaller charitable organizations which might struggle to meet new filing and reporting requirements. This sentiment reflects a broader concern about balancing regulatory oversight with the ability of charitable entities to operate effectively in the pursuit of their philanthropic missions.

Contention

Notable points of contention surrounding SB1661 include the implications for smaller charitable organizations, which may find it difficult to comply with the heightened requirements imposed by the bill. Opposition voices emphasize that the increasing burden of compliance may stifle charitable activity and hinder the organizations' ability to serve their communities. The discussions thus underline an ongoing debate about the necessity of regulation in the charitable sector versus the potential adverse effects on the very entities that aim to provide social benefit.