Virginia House Bill HB526

Virginia 2024 Regular Session

• Introduced: 1/8/24
• Refer: 1/8/24
• Report Pass: 1/25/24
• Engrossed: 1/30/24
• Refer: 2/1/24
• Report Pass: 2/14/24

Caption

Charitable organization; registration fees, solicitation of contributions.

Impact

This legislation impacts state law by enforcing stricter guidelines on how charitable organizations operate, especially in terms of financial transparency and accountability. Organizations will need to report their gross contributions and file an independent registration each fiscal year, with varying registration fees based on the amount of contributions received. The bill also mandates that registration forms include language indicating a prohibition against utilizing contributions to support terrorism, thereby ensuring compliance with national security standards.

Summary

House Bill 526 seeks to amend the Code of Virginia regarding the registration and solicitation practices of charitable organizations. The bill establishes requirements for charitable organizations intending to solicit contributions within the Commonwealth. Among these requirements, organizations must file an initial registration statement with the Commissioner prior to any solicitation, containing detailed information about the organization, its financial records, and the purpose of the contributions they seek.

Contention

Notable points of contention surround the potential burdens that these requirements may place on smaller charitable organizations. Critics argue that the increased regulatory framework could hinder their ability to fundraise effectively, particularly for those with limited administrative resources. Additionally, the provision that allows organizations to be denied registration if they have connections—however indirect—to terrorism could arguably impose an overly broad and vague standard that may adversely affect legitimate charities.

Further_notes

Ultimately, HB526 seeks to balance the need for accountability in fundraising endeavors with the protection of charitable entities from serving as unintentional vehicles for misused funds. The discussions surrounding the bill highlight ongoing concerns regarding the oversight of non-profits, especially in an era where the threat of terrorism requires careful scrutiny of funding channels.