202.12(3)(a)(a) A charitable organization registered under sub.
(1) shall file with the department an annual 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 report shall be filed within 12 months after the end of that fiscal year.
202.12(3)(b)
(b) In addition to the annual report required under par.
(a), if a charitable organization received contributions in excess of $500,000, subject to adjustment under sub.
(8), during its most recently completed fiscal year, the charitable organization 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 12 months after the end of that fiscal year.
202.12(3)(bm)
(bm) In addition to the annual report required under par.
(a), if a charitable organization received contributions in excess of $300,000, subject to adjustment under sub.
(8), but not more than $500,000, subject to adjustment under sub.
(8), during its most recently completed fiscal year, the charitable organization shall file with the department a financial statement for the charitable organization's most recently completed fiscal year, prepared in accordance with generally accepted accounting principles, and a review of the financial statement by an independent certified public accountant. The financial statement shall be filed within 12 months after the end of that fiscal year.
202.12(3)(d)
(d) A charitable organization may apply to the department for a waiver of the requirement set forth in par.
(b) or
(bm). The waiver application shall be in writing, be received by the department within 90 days after the charitable organization's fiscal year-end, and include documentation to support all of the following:
202.12(3)(d)1.
1. The charitable organization's contributions were, during each of the past 3 fiscal years, less than $100,000, subject to adjustment under sub.
(8).
202.12(3)(d)2.
2. During the fiscal year for which the waiver is being requested, the charitable organization received one or more contributions from one contributor that exceeded $200,000, subject to adjustment under sub.
(8), if the charitable organization is applying for a waiver of the requirement set forth in par.
(bm), or exceeded $400,000, subject to adjustment under sub.
(8), if the charitable organization is applying for a waiver of the requirement set forth in par.
(b).
202.12(5)(a)
(a) The following are not required to register under sub.
(1):
202.12(5)(a)1.
1. A person that is exempt from filing a federal annual information return under section
6033 (a) (3) (A) (i) and (iii) and (C) (i) of the Internal Revenue Code.
202.12(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.
11.0102 (1).
202.12(5)(a)3.
3. Except as provided in par.
(b), a charitable organization that does not intend to raise or receive contributions in excess of $25,000, subject to adjustment under sub.
(8), 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.
202.12(5)(a)3m.
3m. A fraternal, civic, benevolent, patriotic, or social organization that solicits contributions solely from its membership.
202.12(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.
202.12(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 that solicit contributions only from its students and their families, alumni, faculty, trustees, corporations, foundations, and patients.
202.12(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.
202.12(5)(a)9.
9. Any corporation established by an act of the United States Congress that is required by federal law to submit to Congress annual reports, fully audited by the United States Department of Defense, of its activities including itemized accounts of all receipts and expenditures.
202.12(5)(b)
(b) If a charitable organization would otherwise be exempt under par.
(a) 3., but it raises or receives more than $25,000, subject to adjustment under sub.
(8), in contributions, it shall, within 30 days after the date on which its contributions exceed this amount, register as required under sub.
(1).
202.12(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.
202.12(6m)
(6m)
Unpaid solicitor disclosure requirements. 202.12(6m)(a)
(a) Prior to orally requesting a contribution or contemporaneously with a written request for a contribution, an unpaid solicitor shall clearly and conspicuously disclose all of the following:
202.12(6m)(a)1.
1. The name of the charitable organization, as it appears on file with the department, on whose behalf the solicitation is being made.
202.12(6m)(a)2.
2. A clear description of the primary charitable purpose for which the solicitation is made.
202.12(6m)(a)3.
3. That the contribution is not tax-deductible, if this disclosure is applicable.
202.12(6m)(b)
(b) In addition to the information required by par.
(a), any written solicitation, and any confirmation, receipt, or reminder of a pledged amount, shall conspicuously state the following verbatim: “A financial statement of the charitable organization disclosing assets, liabilities, fund balances, revenue, and expenses for the preceding fiscal year will be provided to any person upon request."
202.12(6m)(c)
(c) The financial statement under par.
(b) shall, at a minimum, divide expenses into categories of management and general, program services, and fund-raising. If the charitable organization is required to file financial information with its annual report under sub.
(3), the financial statement under par.
(b) shall be consistent with the financial information reported in that annual report.
202.12(6m)(d)
(d) The disclosures required by this subsection are required unless the unpaid solicitor is soliciting a contribution for a charitable organization that is not required to be registered under sub.
(1) or that has obtained a disclosure exemption under par.
(e).
202.12(6m)(e)
(e) 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 disclosure requirements under this subsection. The department shall prescribe the forms and procedures for use in applying for an exemption.
202.12(7)
(7)
Relationship with fund-raising counsel and professional fund-raisers. 202.12(7)(a)
(a) A charitable organization that is required to be registered under sub.
(1), and that permits a fund-raising counsel to perform any material services for the charitable organization, shall do all of the following:
202.12(7)(a)1.
1. Before permitting the fund-raising counsel to perform any material services for the charitable organization, ensure the fund-raising counsel is registered under s.
202.13 (1) or is not required to be registered.
202.12(7)(a)2.
2. Before permitting the fund-raising counsel to perform any material services for the charitable organization, contract in writing with the fund-raising counsel, unless the fund-raising counsel is exempt under s.
202.13 (6) from contracting in writing with the charitable organization. Requirements for the contract are specified in s.
202.13 (3).
202.12(7)(a)3.
3. Retain, for at least 3 years, the accounting the fund-raising counsel is required to provide to the charitable organization under s.
202.13 (4) (a) and make this accounting available to the department upon request.
202.12(7)(a)4.
4. Maintain an account at a financial institution within which the fund-raising counsel shall deposit, in its entirety, within 5 days after its receipt, a contribution of money received by the fund-raising counsel on behalf of the charitable organization. The account shall be in the name of the charitable organization, and the charitable organization shall have sole control of all withdrawals from the account.
202.12(7)(b)
(b) A charitable organization that is required to be registered under sub.
(1), and that permits a professional fund-raiser to perform any material services for the charitable organization, shall do all of the following:
202.12(7)(b)1.
1. Before permitting the professional fund-raiser to perform any material services for the charitable organization, ensure the professional fund-raiser is registered under s.
202.14 (1) or is not required to be registered.
202.12(7)(b)2.
2. Before permitting the professional fund-raiser to perform any material services for the charitable organization, contract in writing with the professional fund-raiser. Requirements for the contract are specified in s.
202.14 (4).
202.12(7)(b)3.
3. Before permitting the professional fund-raiser to perform any material services for the charitable organization, file with the department a written confirmation that any solicitation notice filed with the department under s.
202.14 (3), and any material accompanying that notice, are true and correct to the best of the charitable organization's knowledge.
202.12(7)(b)4.
4. Retain, for at least 3 years, the accounting the professional fund-raiser is required to provide to the charitable organization under s.
202.14 (7), and make this accounting available to the department upon request.
202.12(7)(b)5.
5. Maintain an account at a financial institution within which the professional fund-raiser shall deposit, in its entirety, within 5 days after its receipt, a contribution of money received by the professional fund-raiser on behalf of the charitable organization. The account shall be in the name of the charitable organization, and the charitable organization shall have sole control of all withdrawals from the account.
202.12(8)(b)
(b) Before the department makes any adjustment under par.
(a), the department shall send a notification of the proposed adjustment to the cochairpersons of the joint committee for review of administrative rules. If the cochairpersons of the committee do not notify the secretary of financial institutions within 14 working days after the date of the department's notification that the committee has scheduled a meeting for the purpose of reviewing the proposed adjustment, the adjustment may be made as proposed. If, within 14 working days after the date of the department's notification, the cochairpersons of the committee notify the secretary of financial institutions that the committee has scheduled a meeting for the purpose of reviewing the proposed adjustment, the adjustment may be made only upon approval of the committee.
202.12(8)(c)
(c) The department shall notify registrants of any adjustment under this subsection by posting the adjustment on the department's Internet site.
202.12 Cross-reference
Cross-reference: See also ch.
DFI-Bkg 60, Wis. adm. code.
202.13
202.13
Regulation of fund-raising counsel. 202.13(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.
202.12 (1) unless the fund-raising counsel is registered with the department under this subsection.
202.13(1)(b)
(b) Applicants for a fund-raising counsel registration shall apply to the department, in the form and manner prescribed by the department. Each application that is not a renewal application shall be accompanied by any information required by the department, including all of the following:
202.13(1)(b)1m.
1m. The registration fee determined by the department under s.
202.041, except that no registration fee is required under this subdivision for an individual who is eligible for the veterans fee waiver program under s.
45.44.
202.13(1)(e)
(e) All fund-raising counsel registrations expire on August 31 of each year.
202.13(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. The fund-raising counsel shall maintain the bond in effect as long as the registration is in effect. The bond, which shall be in a form prescribed by and acceptable to the department, 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.
202.13(2m)
(2m)
Annual report. Each fund-raising counsel registered under sub.
(1) shall, on or before March 31 of each year, file a report with the department giving such reasonable and relevant information as the department may require concerning the business and operations conducted by the registrant. This report shall be in the form prescribed by the department.
202.13(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.
202.12 (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.
202.13(4)
(4)
Accounts; deposits; record keeping. 202.13(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 fund-raising counsel shall keep the accounting for at least 3 years after the date on which services under the contract are completed.
202.13(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.
202.13(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:
202.13(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.
202.13(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.
202.13(4)(d)
(d) All records described in this subsection shall be made available to the department upon the department's request.
202.13(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 children and families or a county child support agency under s.
59.53 (5).
202.13(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.
202.12 (1), register under sub.
(1).
202.14
202.14
Regulation of professional fund-raisers. 202.14(1)(a)
(a) No professional fund-raiser may solicit in this state for a charitable organization that is required to be registered under s.
202.12 (1) unless the professional fund-raiser is registered under this subsection.
202.14(1)(b)
(b) Applicants for a professional fund-raiser registration shall apply to the department, in the form and manner prescribed by the department. Each application that is not a renewal application shall be accompanied by any information required by the department, including all of the following:
202.14(1)(b)1m.
1m. The registration fee determined by the department under s.
202.041, except that no registration fee is required under this subdivision for an individual who is eligible for the veterans fee waiver program under s.
45.44.
202.14(1)(e)
(e) All professional fund-raiser registrations expire on August 31 of each year.
202.14(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. 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 shall be in a form prescribed by and acceptable to the department, 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.
202.14(2m)
(2m)
Annual report. Each professional fund-raiser registered under sub.
(1) shall, on or before March 31 of each year, file a report with the department giving such reasonable and relevant information as the department may require concerning the business and operations conducted by the registrant. This report shall be in the form prescribed by the department.
202.14(3)(am)(am) Before performing services under a contract with a charitable organization that is required to be registered under s.
202.12 (1), a professional fund-raiser shall file with the department a completed solicitation notice in the form and manner prescribed by the department. Forms prescribed by the department under this paragraph may contain any content or requirement that the department, in its discretion, determines necessary. 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.
202.14(3)(bm)
(bm) Within 7 days after any material change occurs in information filed with the department under par.
(am), the professional fund-raiser shall report the change, in writing, to the department.
202.14(4)(a)(a) A professional fund-raiser may not solicit contributions on behalf of a charitable organization that is required to be registered under s.
202.12 (1) unless the professional fund-raiser has executed a written contract with the charitable organization that clearly states the respective obligations of the professional fund-raiser and the charitable organization.
202.14(4)(e)
(e) The contract required under par.
(a) shall include all of the following:
202.14(4)(e)4.
4. The terms of the contract, including a clear description of the services to be performed by the professional fund-raiser.
202.14(4)(e)5.
5. A clear statement of the financial arrangement between the professional fund-raiser and the charitable organization, including, if applicable, a statement of all of the following:
202.14(4)(e)5.a.
a. The percentage or dollar amount of the total funds collected on behalf of the charitable organization that shall be paid to, or retained by, the charitable organization.
202.14(4)(e)5.b.
b. The percentage or dollar amount of the total funds collected on behalf of the charitable organization that shall be paid to the professional fund-raiser or any other person for purposes other than the exclusive benefit of the charitable organization's charitable purposes.
