440.42(2)(L)2.
2. A statement of the place where and the date when the charitable organization was legally established, the form of its organization and whether it has tax-exempt status.
440.42(2)(L)3.
3. Copies of any federal or state tax exemption determination letters received by the charitable organization.
440.42(2)(m)
(m) Any other information required by the department.
440.42(3)
(3) Annual financial report; audit requirement. 440.42(3)(a)(a) Except as provided in
pars. (am) and
(b) and in rules promulgated under
sub. (8), a charitable organization that received contributions in excess of $5,000 during its most recently completed fiscal year shall file with the department an annual financial report for the charitable organization's most recently completed fiscal year. The department shall prescribe the form of the report and shall prescribe standards for its completion. The annual financial report shall be filed within 6 months after the end of that fiscal year and shall include all of the following:
440.42(3)(a)2.
2. A statement of support, revenue, expenses and changes in fund balance.
440.42(3)(a)3.
3. A statement of functional expenses that, at a minimum, is divided into categories of management and general, program services and fund-raising.
440.42(3)(a)4.
4. Other financial information that the department requires.
440.42(3)(am)
(am) A charitable organization that operates solely within one community and that received less than $50,000 in contributions during its most recently completed fiscal year may apply to the department for an exemption from the reporting requirement under
par. (a). The department shall promulgate rules specifying the criteria for eligibility for an exemption under this paragraph, and shall grant exemptions from the reporting requirement under
par. (a) to a charitable organization that satisfies those criteria.
440.42(3)(b)
(b) Except as provided in rules promulgated under
sub. (8), in lieu of filing a report under
par. (a), a charitable organization that received contributions in excess of $100,000 during its most recently completed fiscal year shall file with the department an audited financial statement for the charitable organization's most recently completed fiscal year, prepared in accordance with generally accepted accounting principles, and the opinion of an independent certified public accountant on the financial statement. The audited financial statement shall be filed within 6 months after the end of that fiscal year.
440.42(3)(c)
(c) Except as provided in rules promulgated under
sub. (8), a charitable organization that is registered under
sub. (1) and that received $5,000 or less in contributions during its most recently completed fiscal year shall file with the department an affidavit that the charitable organization received $5,000 or less in contributions during that fiscal year. The affidavit shall be signed and sworn to by 2 authorized officers, including the chief fiscal officer, of the charitable organization and shall be filed within 6 months after the end of that fiscal year.
440.42(4)
(4) Acceptance of other information. The department may accept information filed by a charitable organization with another state or with the federal government instead of the information required to be included in a registration statement under
sub. (2) if the information filed with the other state or with the federal government is substantially similar to the information required under this section.
440.42(5)(a)1.
1. A person that is exempt from filing a federal annual information return under section
6033 (a) (2) (A) (i) and (iii) and (C) (i) of the internal revenue code.
440.42(5)(a)2.
2. A candidate for national, state or local office or a political party or other committee or group required to file financial information with the federal elections commission or a filing officer under
s. 11.02.
440.42(5)(a)3.
3. Except as provided in
par. (b) and in rules promulgated under
sub. (8), a charitable organization which does not intend to raise or receive contributions in excess of $5,000 during a fiscal year, if all of its functions, including solicitation, are performed by persons who are unpaid for their services and if no part of its assets or income inures to the benefit of, or is paid to, any officer or member of the charitable organization.
440.42(5)(a)3m.
3m. A fraternal, civic, benevolent, patriotic or social organization that solicits contributions solely from its membership.
440.42(5)(a)4.
4. A veterans organization incorporated under
ch. 188 or chartered under federal law or the service foundation of such an organization recognized in the bylaws of the organization.
440.42(5)(a)5.
5. A nonprofit, postsecondary educational institution accredited by a regional accrediting agency or association approved under
20 USC 1099b, or an educational institution and its authorized charitable foundations which solicit contributions only from its students and their families, alumni, faculty, trustees, corporations, foundations and patients.
440.42(5)(a)6.
6. A person soliciting contributions for the relief of a named individual if all contributions, without any deductions, are given to the named individual.
440.42(5)(b)
(b) Except as provided in rules promulgated under
sub. (8), if a charitable organization would otherwise be exempt under
par. (a) 3., but it raises or receives more than $5,000 in contributions, it shall, within 30 days after the date on which its contributions exceed $5,000, register as required under
sub. (1).
440.42(6)
(6) Reporting tax exemption or organizational changes. If a charitable organization registered under
sub. (1) receives any federal or state tax exemption determination letter or adopts any amendment to its organizational instrument or bylaws after it is registered under
sub. (1), within 30 days after receipt of the letter or adoption of the amendment, the charitable organization shall file with the department a copy of the letter or amendment.
440.42(7)(a)(a) Before a fund-raising counsel performs any material services for a charitable organization that is required to be registered under
sub. (1), the charitable organization shall contract in writing with the fund-raising counsel, except as provided in
par. (c). Requirements for the contract are specified in
s. 440.43 (3).
440.42(7)(b)
(b) Before a professional fund-raiser performs any material services for a charitable organization that is required to be registered under
sub. (1), the charitable organization shall contract in writing with the professional fund-raiser. Requirements for the contract are specified in
s. 440.44 (4).
440.42(7)(c)
(c) Paragraph (a) does not apply if the fund-raising counsel is exempt under
s. 440.43 (6) from contracting in writing with the charitable organization.
440.42 History
History: 1991 a. 278;
1995 a. 27,
277.
440.42 Annotation
Complying With the Charitable Solicitations Act. Sweet & Petershack. Wis. Law. Oct. 1993.
440.43
440.43
Regulation of fund-raising counsel. 440.43(1)(a)(a) Except as provided in
sub. (6), no fund-raising counsel may at any time have custody of contributions from a solicitation for a charitable organization that is required to be registered under
s. 440.42 (1) unless the fund-raising counsel is registered with the department under this subsection.
440.43(1)(b)
(b) The department shall promptly register a fund-raising counsel that does all of the following:
440.43(1)(b)1.
1. Submits to the department an application for registration on a form provided by the department.
440.43(1)(c)
(c) The department shall issue a certificate of registration to each fund-raising counsel that is registered under this subsection. Renewal applications shall be submitted to the department, on a form provided by the department, on or before the date specified in
s. 440.08 (2) (a) and shall include the renewal fee specified in
s. 440.08 (2) (a) and evidence satisfactory to the department that the fund-raising counsel maintains a bond that is approved under
sub. (2).
440.43(1)(d)
(d) Within 20 days after receiving an application for registration or for renewal of a registration under this subsection, the department shall notify the fund-raising counsel of any deficiencies in the application, bond or fee payment.
440.43(2)
(2) Bond. At the time of applying for registration under
sub. (1), the fund-raising counsel shall file with and have approved by the department a bond, in which the fund-raising counsel is the principal obligor, in the sum of $20,000, with one or more responsible sureties whose liability in the aggregate as sureties at least equals that sum. The fund-raising counsel shall maintain the bond in effect as long as the registration is in effect. The bond, which may be in the form of a rider to a larger blanket liability bond, shall run to the state and to any person who may have a cause of action against the principal obligor of the bond for any liabilities resulting from the obligor's conduct of any activities as a fund-raising counsel or arising out of a violation of this subchapter or the rules promulgated under this subchapter.
440.43(3)
(3) Contract. Except as provided in
sub. (6), before a fund-raising counsel performs any material services for a charitable organization that is required to be registered under
s. 440.42 (1), the charitable organization and the fund-raising counsel shall contract in writing and the fund-raising counsel shall file the contract with the department. The contract shall contain information that will enable the department to identify the services that the fund-raising counsel is to provide, including whether the fund-raising counsel will at any time have custody of contributions.
440.43(4)
(4) Accounts; deposits; record keeping. 440.43(4)(a)(a) Within 90 days after services under a contract required under
sub. (3) are completed, and on the anniversary of the signing of a contract lasting more than one year, the fund-raising counsel shall account in writing to the charitable organization with which the fund-raising counsel has contracted for all contributions received and expenses incurred under the contract. The charitable organization shall keep the accounting for at least 3 years after the date on which services under the contract are completed and make it available to the department upon request.
440.43(4)(b)
(b) The fund-raising counsel shall deposit, in its entirety, a contribution of money received by the fund-raising counsel in an account at a financial institution within 5 days after its receipt. The account shall be in the name of the charitable organization with which the fund-raising counsel has contracted. The charitable organization shall have sole control of all withdrawals from the account.
440.43(4)(c)
(c) The fund-raising counsel shall keep for the duration of a contract, and for not less than 3 years after its completion, all of the following:
440.43(4)(c)1.
1. A record of all contributions at any time in the custody of the fund-raising counsel, including the name and address of each contributor and the date and amount of the contribution.
440.43(4)(c)2.
2. A record of the location and account number of each financial institution account in which the fund-raising counsel deposits contributions.
440.43(5)
(5) Department disclosure. The department shall not disclose information under
sub. (4) (c) 1. except to the extent necessary for investigative or law enforcement purposes and except that the department may, if requested under
s. 49.22 (2m), disclose information regarding the name, address or employer of or financial information related to an individual to the department of workforce development or a county child support agency under
s. 59.53 (5).
440.43(6)
(6) Exceptions. This section does not apply to a fund-raising counsel who does not intend to earn more than $1,000 per year as a fund-raising counsel, except that a fund-raising counsel who does not intend to earn more than $1,000 but does earn more than $1,000 in a year shall, beginning 30 days after actually earning more than $1,000 in a year, comply with
sub. (3) and, if the fund-raising counsel at any time has custody of contributions for a charitable organization that is required to be registered under
s. 440.42 (1), register under
sub. (1).
440.44
440.44
Regulation of professional fund-raisers. 440.44(1)(a)(a) No professional fund-raiser may solicit in this state for a charitable organization that is required to be registered under
s. 440.42 (1) unless the professional fund-raiser is registered under this subsection.
440.44(1)(b)
(b) The department shall promptly register a professional fund-raiser that does all of the following:
440.44(1)(b)1.
1. Submits to the department an application for registration on a form provided by the department.
440.44(1)(c)
(c) The department shall issue a certificate of registration to each professional fund-raiser that is registered under this subsection. Renewal applications shall be submitted to the department, on a form provided by the department, on or before the date specified in
s. 440.08 (2) (a) and shall include the renewal fee specified in
s. 440.08 (2) (a) and evidence satisfactory to the department that the professional fund-raiser maintains a bond that is approved under
sub. (2).
440.44(1)(d)
(d) Within 20 days after receiving an application for registration or for renewal of a registration under this subsection, the department shall notify the professional fund-raiser of any deficiencies in the application, bond or fee payment.
440.44(2)
(2) Bond. At the time of applying for registration under
sub. (1), a professional fund-raiser shall file with and have approved by the department a bond, in which the professional fund-raiser is the principal obligor, in the sum of $20,000, with one or more responsible sureties whose liability in the aggregate as sureties at least equals that sum. If a professional fund-raiser does not at any time have custody of any contributions, the bond shall be in the sum of $5,000. The professional fund-raiser shall maintain the bond in effect as long as the registration is in effect. The bond, which may be in the form of a rider to a larger blanket liability bond, shall run to the state and to any person who may have a cause of action against the principal obligor of the bond for any liabilities resulting from the obligor's conduct of any activities as a professional fund-raiser or arising out of a violation of this subchapter or the rules promulgated under this subchapter.
440.44(3)
(3) Solicitation notice. Before performing services under a contract with a charitable organization that is required to be registered under
s. 440.42 (1), a professional fund-raiser shall file with the department a completed solicitation notice in the form prescribed by the department. The charitable organization on whose behalf the professional fund-raiser is acting shall file with the department a written confirmation that the solicitation notice and any accompanying material are true and complete to the best of its knowledge. The solicitation notice shall include all of the following:
440.44(3)(b)
(b) The projected period during which the soliciting will take place.
440.44(3)(c)
(c) The location and telephone number from which the soliciting will be conducted.
440.44(3)(d)
(d) The name and residence address of each person responsible for directing and supervising the conduct of services under the contract described in
sub. (4).
440.44(3)(e)
(e) A statement of whether the professional fund-raiser will at any time have custody of contributions.
440.44(3)(f)
(f) A full and fair description of the charitable purpose for which solicitations will be made.
440.44(4)(a)(a) A professional fund-raiser and a charitable organization that is required to be registered under
s. 440.42 (1) shall enter into a written contract that clearly states the respective obligations of the professional fund-raiser and the charitable organization and states the amount of gross revenue, raised under the contract, that the charitable organization will receive. The amount of the gross revenue that the charitable organization will receive shall be expressed as a fixed percentage of the gross revenue or as an estimated percentage of the gross revenue, as provided in
pars. (b) to
(d).
440.44(4)(b)
(b) If the compensation received by the professional fund-raiser is contingent upon the amount of revenue received, the amount of the gross revenue that the charitable organization will receive shall be expressed as a fixed percentage of the gross revenue.
440.44(4)(c)
(c) If the compensation received by the professional fund-raiser is not contingent upon the amount of revenue received, the amount of the gross revenue that the charitable organization will receive shall be expressed as an estimated percentage of the gross revenue. The estimate shall be reasonable and the contract shall clearly disclose the assumptions upon which the estimate is based. The assumptions shall be based upon all of the relevant facts known to the professional fund-raiser regarding the solicitation to be conducted and upon the past performance of solicitations conducted by the professional fund-raiser. If the amount of the gross revenue that the charitable organization will receive is expressed as an estimated percentage of the gross revenue, the contract shall also guarantee that the charitable organization will receive a percentage of the gross revenue that is not less than the estimated percentage minus 10% of the gross revenue.
440.44(4)(d)
(d) The estimated or fixed percentage of the gross revenue that the charitable organization will receive excludes any amount which the charitable organization is to pay under the contract as expenses, including the cost of merchandise or services sold or events staged.
440.44(5)
(5) Reporting changes. Within 7 days after any material change occurs in information filed with the department under this section, the professional fund-raiser shall report the change, in writing, to the department.
440.44(7)
(7) Financial report. Within 90 days after completing services under a contract described in
sub. (4), and on the anniversary of the signing of a contract described under
sub. (4) lasting more than one year, the professional fund-raiser shall, if the charitable organization is required to be registered under
s. 440.42 (1), account in writing to the charitable organization for all contributions received and all expenses incurred under the contract. The charitable organization shall retain the accounting for at least 3 years and make it available to the department upon request.
440.44(8)
(8) Depositing contributions. A professional fund-raiser shall deposit, in its entirety, a contribution of money received by the professional fund-raiser, on behalf of a charitable organization required to be registered under
s. 440.42 (1), in an account at a financial institution within 5 days after its receipt. The account shall be in the name of the charitable organization. The charitable organization shall have sole control of all withdrawals from the account.
440.44(9)(a)(a) During the period in which a contract described in
sub. (4) is in effect and for not less than 3 years after its completion, a professional fund-raiser shall retain all of the following records:
440.44(9)(a)1.
1. The name and, if known to the professional fund-raiser, the address of each person contributing and the date and amount of the contribution.
440.44(9)(a)2.
2. The name and residence address of each employe, agent or other person involved in the solicitation.
440.44(9)(a)3.
3. A record of all contributions that are at any time in the custody of the professional fund-raiser.
440.44(9)(a)4.
4. A record of all expenses incurred by the professional fund-raiser which the charitable organization is required to pay.
440.44(9)(a)5.
5. A record of the location and account number of each financial institution account in which the professional fund-raiser deposits contributions.
440.44(9)(b)
(b) If under a contract described in
sub. (4) the professional fund-raiser sells tickets to an event and represents that the tickets will be donated to an organization for use by others, the professional fund-raiser shall retain for the period specified in
par. (a) all of the following:
440.44(9)(b)1.
1. The name and address of the donors and the number of tickets donated by each donor.
440.44(9)(b)2.
2. The name and address of the organization receiving donated tickets and the number of donated tickets received by the organization.
440.44(9)(c)
(c) The professional fund-raiser shall make all records described in this subsection available for inspection by the department upon request.
