Section 3-19 CHARITABLE SOLICITATIONS

3-19
CHARITABLE SOLICITATIONS¹:

13-19.1 Solicitation For Charitable Purposes:

a. Defined Terms: The following terms and phrases are defined in Subsection 3-19.6: “charitable organization”; “charitable purpose”; “commercial fundraiser for charitable purposes”; “contribution”; “sales solicitation for charitable purposes”; “solicit”; and “solicitation for charitable purposes”.

b. Applicability And Exceptions:

1. Any person who solicits any contribution, admission fee, or payment of any kind, even if exchanged for items or services of value, in any manner that would lead a reasonable person to believe that any portion of the contribution, admission fee, or payment solicited will be used for the benefit of or on behalf of any law enforcement, fire, paramedic or other governmental agency, or for or on behalf of employees of those agencies or their dependents, must comply with the provisions of this Section as if those solicitations were for contributions for charitable purposes, or in the name of, or on behalf of, a charitable organization.

2. Any person who for compensation received, or to be received, solicits, or is engaged in the business of, or represents to the public it is engaged in the business of soliciting contributions, admission fees, or payments in a manner described above in subsection b1 on behalf of any other person or organization must comply with the provisions of this Section as if that person was a commercial fundraiser for charitable purposes.

3. The provisions of this Section do not apply:

(a) To activities which the City is preempted by State law from regulating.

(b) To any solicitation made upon premises owned or regularly occupied by the organization upon whose behalf the solicitation is made.

(c) To any organization soliciting contributions solely from persons who are members of that organization at the time of the solicitation.

(d) To any organization soliciting contributions solely from members, guests or invitees attending a charitable fundraising event sponsored by or on behalf of that organization.

(e) To any solicitation for the assistance or relief of any individual specified by name at the time of the solicitation where the solicitor represents in each instance that the entire amount collected, without any deduction or offset, will be delivered to the named beneficiary.

(f) To funds raised as authorized by section 326.5 of the California Penal Code relating to bingo games.

(g) To the activities of any organization, or any person engaged by or under its authority, in soliciting donations of salvageable personal property solely from members of that organization, or in selling salvageable personal property obtained from the organization’s members by that soliciting, or the soliciting and sale of salvageable personal property by an organization for occasional rummage sales or bazaars where that activity does not constitute a major part of the organization’s activities and is not conducted as a permanent or continuous operation. This exemption also applies to an association that is exempt under section 23701d or 23701f of the Revenue and Taxation Code if the membership of the association is comprised of persons with physical, mental or developmental disabilities and the primary purpose of the association is to provide services to persons with those disabilities. (Ord. #1435, §1)

3-19.2 Application For Permit - Filing Of Notice Of Intention:

a. No person may solicit in the City, and no person may authorize another person to solicit, any contribution for any charitable purpose, or in the name of, or on behalf of, any charitable organization, unless at least fifteen (15) days prior to the commencement of that solicitation a written notice of intention to solicit charitable contributions is filed with the City Clerk on a form provided by the City Clerk. The City Clerk may, for good cause shown, allow the filing of a notice of intention less than fifteen (15) days prior to the commencement of the solicitation. The notice of intention may identify multiple solicitations of charitable contributions that are proposed to be made during any period of time not exceeding twelve (12) months, provided that all information required under subsection b below is submitted with regard to each separate solicitation. The notice of intention must be accompanied by a filing fee in the amount established by resolution of the City Council.

b. The notice of intention must contain the following information:

1. The full legal name, principal business address, local business address (if any) and telephone number of the charitable organization by or on behalf of which the solicitation will be conducted. The notice of intention must be signed under penalty of perjury by an officer, employee or authorized agent of the named charitable organization. If the authorized agent is a “commercial fundraiser for charitable purposes”, as defined in subsection 3-19.6c, the following supplemental information must be submitted:

(a) The original or a certified copy of the resolution, agreement, letter of consent, or similar documentation that authorizes the agency relationship between the named charitable organization and the commercial fundraiser for charitable purposes.

(b) A statement as to whether the authorized agent is currently registered with the California Attorney General’s Registry of Charitable Trusts and is in compliance with the financial reporting requirements of Government Code section 12599 and has posted the cash deposit or surety bond in the sum of twenty five thousand dollars ($25,000.00) as required by Government Code section 12599.5.

2. A proposed form of information card or, in the alternative, a copy of other printed material, such as a solicitation brochure, which the applicant will exhibit or distribute to prospective donors or purchasers during the course of the solicitation. Information on that card or other printed material must be presented in at least ten (10) point type and must include the following, as applicable:

(a) The name and principal business address of the organization on behalf of which all or any part of the contributions collected will be used for charitable purposes. If there is no organization, the manner in which the contributions collected will be used for charitable purposes.

(b) The non-tax-exempt status of the organization or fund, if the organization or fund for which the contributions are being solicited does not have a charitable tax exemption under both Federal and State law.

(c) The estimated percentage of the total contribution which may be deducted as a charitable contribution under both Federal and State law. If no portion is deductible, a statement must appear that: “This contribution is not tax deductible.”

(d) The estimated amount, stated as a percentage of the total contribution, that will be used for charitable purposes.

(e) If a commercial fundraiser for charitable purposes is to be engaged, and is to be paid a set fee rather than a percentage of the total amount raised, a statement of the estimated total cost to be incurred for direct fundraising expenses.

(f) If the solicitation is not a sales solicitation, the applicant may include a statement, in lieu of estimating the total amount of fundraising expenses to be incurred, that an audited statement of these fundraising expenses may be obtained by contacting the organization or fund at the address disclosed.

(g) If the solicitation is to be made by or on behalf of a nongovernmental organization with any name which includes, without limitation, the term “officer”, “peace officer”, “police”, “law enforcement”, “reserve officer”, “deputy”, “California Highway Patrol”, “Highway Patrol”, or “deputy sheriff”, which name would reasonably be understood to imply that the organization is composed of law enforcement personnel, a statement must be included as to the total number of members in that organization and the number of members working or living within Los Angeles County, and if the solicitation is for advertising, the Statewide circulation of the publication in which the solicited ad will appear.

(h) If the solicitation is to be made by or on behalf of a nongovernmental organization with any name which includes, without limitation, the term “veteran” or “veterans”, which name would reasonably be understood to imply that the organization is composed of veterans, a statement must be included as to the total number of members in that organization and the number of members working or living within Los Angeles County. This requirement does not apply to: 1) federally chartered or State incorporated veterans’ organizations with two hundred (200) or more dues-paying members; or 2) a thrift store operated or controlled by a federally chartered or State incorporated veterans’ organization; or 3) any State-incorporated community-based organization that provides direct services to veterans and their families and qualifies as a tax-exempt organization under section 501(c)(3) or 501(c)(19) of the Internal Revenue Code and section 23701d of the Revenue and Taxation Code.

3. Documents from the Internal Revenue Service and the California Franchise Tax Board which establish the tax-exempt status of the named charitable organization.

4. The names, addresses, and telephone numbers of the principal officers and members of the board of trustees or board of directors of the named charitable organization.

5. The purpose for which the solicitation is to be made, the total amount of contributions proposed to be raised, and the use or disposition to be made of the contributions received from the solicitation.

6. A description of the method or methods to be used in conducting the solicitation.

7. The name, residence address and telephone number of the person or persons who will be in direct charge of and responsible for conducting the solicitation.

8. The name, residence address and telephone number of each solicitor who, for monetary compensation, will participate in the solicitation and to whom an identification card will be issued by the City Clerk in accordance with subsection 3-19.3h. If these solicitors are employed by or under the control of a commercial fundraiser for charitable purposes registered with the California Attorney General, evidence must be submitted that the named solicitors and the commercial fundraiser for commercial purposes possess a City business license under Section 4-6 of this Code. If the solicitation will be conducted solely by regular employees of the named charitable organization, or by members or volunteers of that charitable organization who will not be paid any monetary compensation, then the City Clerk may waive the disclosure requirement of this subsection 8 and may authorize the named charitable organization to issue its own identification cards to its solicitors in the format specified in subsection 3-19.3h.

9. The dates on which the solicitation will commence and terminate, and the hours of the day when solicitations will be made.

10. A description of the nature and extent of charitable work being performed in the City by the named charitable organization.

11. A statement to the effect that, if a permit is granted for the solicitation, it will not be used or represented in any manner as an endorsement by the City, or by any department, officer or employee of the City.

12. A statement that the person or persons signing the notice of intention have read and are familiar with the provisions of Section 3-19 of this Code and will require that all solicitors to be engaged in the solicitation read and be familiar with these provisions prior to making any solicitations.

c. If, during the period for review of the notice of intention, or during the term of any permit issued for the solicitation, there is any significant change in fact, policy or method that would alter the information set forth in the notice of intention, the applicant must notify the City Clerk in writing within forty eight (48) hours after that change.

d. All information set forth in the notice of intention, and any additional information provided by the applicant relating to that notice, will be a matter of public record and will be open to public inspection. (Ord. #1435, §1)

3-19.3 Issuance Of Permit And Identification Cards - General Provisions:

a. Review Of Notice Of Intention: The City Clerk must review the notice of intention filed under Subsection 3-19.2. The applicant must make available for inspection, upon the City Clerk’s request, all of the applicant’s financial books and records at any reasonable time before the permit is issued, during the time the permit is in effect, or after the permit has expired. The City Clerk may inspect those financial books and records solely for the purpose of verifying the truth and accuracy of the information contained in the notice of intention, or the truth and accuracy of any representation made by the permittee with regard to any solicitation conducted under this Section.

b. Issuance Of Permit: The City Clerk must issue a permit to the applicant no later than fifteen (15) days after the filing of a notice of intention unless any of the following deficiencies exist which have not been corrected following written notification by the City Clerk to the applicant of that deficiency:

1. The notice of intention is incomplete or otherwise fails to disclose the information required by subsection 3-19.2b.

2. A statement made in the notice of intention is factually incorrect.

c. Authority Of The City Clerk: Nothing in this Section is to be construed as conferring upon the City Clerk, or upon any other person, the authority to grant, deny, revoke, renew or suspend any permit by reason of either approval or disapproval of the philosophy, opinions, or beliefs of the applicant, the permittee, or the person represented by the applicant or permittee, or for any other reasons not specifically set forth in this Section.

d. Form Of Permit: Permits issued under this Section must bear the name, address and telephone number of the person to whom the permit is issued, the name and address of the charitable organization by or on whose behalf the solicitation is to be conducted, the number of the permit, the date issued, the dates within which the permittee may solicit, and a statement that the permit does not constitute an endorsement of the solicitation by the City, or by any of its departments, officers or employees. The City Clerk must sign all permits.

e. Term Of Permit: Unless renewed, revoked or suspended in accordance with the provisions of this Section, a permit is valid for a period of thirty (30) days, and if the permit authorizes multiple solicitations, it may be valid for a period of up to twelve (12) months.

f. Permit Nontransferable: No permit issued under this Section is transferable or assignable.

g. Renewal Of Permit: Upon the expiration of any permit, and if requested in writing so to do, the City Clerk will renew the permit within ten (10) days of that request if the factual information upon which the original permit was granted remains unchanged, and no violation of this Section has occurred. The City Clerk may require that a new notice of intention be filed in accordance with the provisions of this Section.

h. Identification Cards:

1. Form Of Identification Card: Upon issuance of the permit, the City Clerk will issue an identification card to each solicitor named in the application who, for compensation, will participate in the solicitation. The identification card must bear the permit number, the expiration date of the permit, the name and address of the permittee, the name and address of the charitable organization which is represented (if different from the named permittee), and the photograph and name of the solicitor. If the solicitation will be conducted solely by regular employees of the named charitable organization, or by members or volunteers of that charitable organization who will not be paid any monetary compensation, then the City Clerk may authorize the permittee to issue its own identification cards to its solicitors. Unless otherwise authorized by the City Clerk, these identification cards must bear the permit number, the expiration date of the permit, the name of the solicitor and the name and address of the permittee.

2. Display Of Identification Cards: No person may solicit any contributions unless the identification card is affixed to the solicitor’s clothing in a conspicuous manner so that any person being solicited may observe the identification card and its contents. The identification card must either be read to or presented for inspection by the person solicited before any contribution is requested, offered or accepted.

3. Disposal Of Identification Cards: Upon expiration of the permit, or upon the earlier termination of the authorized solicitation, the permittee must collect and destroy all identification cards previously issued by the City Clerk to the permittee’s solicitors. Identification cards issued by an authorized permittee to its employees, members or volunteers must be collected from the solicitors and disposed of. (Ord. #1435, §1)

3-19.4 Operating Requirements:

a. Time Of Solicitation: It is unlawful for a solicitor, agent or representative of any permittee to go upon any residential premises after eight o’clock (8:00) P.M., or earlier than nine o’clock (9:00) A.M., for the purpose of solicitation, unless the permittee has been explicitly requested or invited to do so by the owner or occupant of the residential premises. Nothing herein may be construed to grant any person permission to enter upon any private property at any time without the express consent of the owner or occupant of that property.

b. Written Receipts Required: Any permittee, or any solicitor, agent or representative of a permittee, receiving money or any other contribution having a value of five dollars ($5.00) or more from any donor or purchaser following a solicitation authorized by a permit must deliver to the donor or purchaser, upon request, a written receipt, signed by the solicitor, showing plainly the name and permit number of the permittee conducting the solicitation, the date, and the amount received; but this requirement does not apply to contributions from anonymous donors collected by means of a closed receptacle or collection box used in a solicitation authorized by a permit issued by the City Clerk if: 1) there is attached to the receptacle or box a copy of the information card or other written material approved by the City Clerk; and 2) the receptacle or box bears a number or other identification mark; and 3) a written list showing the location and name of the solicitor in charge of each receptacle or box has previously been filed with the City Clerk in connection with an authorized solicitation.

c. Manner Of Solicitation: It is unlawful for a permittee, or for a solicitor, agent or representative of a permittee, to engage in any of the following activities:

1. To solicit members of the public by direct personal contact without an identification card duly issued by the City Clerk to a solicitor named in the permittee’s notice of intention, or by a charitable organization authorized by the City Clerk to issue identification cards to its solicitors.

2. To solicit members of the public by direct personal contact without exhibiting or distributing the information card, or other printed material, such as a solicitation brochure, in the form set forth in the notice of intention and authorized by the permit issued by the City Clerk.

3. To solicit a contribution for or on behalf of any charitable organization that does not maintain financial records on the basis of generally accepted accounting principles.

4. To allow any child under the age of ten (10) years to solicit a charitable contribution unless accompanied by a person who is eighteen (18) years of age, or older, and who keeps that child at all times within that person’s sight and hearing.

5. To solicit a contribution by telephone unless the solicitor delivers to any person who so requests, a copy of the information card or other printed material, approved by the permit issued by the City Clerk.

6. To solicit upon or within any private property, dwelling, house, apartment, condominium, place of abode, or place of business, where there is a posted sign stating, in effect, that its owners or occupants do not desire to be solicited or to have their privacy disturbed, such as “No Solicitors or Canvassers”, “No Solicitations”, or “Do Not Disturb”.

7. To touch, come into physical contact with, or affix any object to the person of any prospective contributor, or other member of the public, in furtherance of any solicitation authorized by this Section, without first obtaining explicit permission to do so from that prospective contributor or member of the public.

8. To continue the solicitation of any prospective contributor or other member of the public after that person, by verbal or nonverbal means, expresses a desire not to make a contribution.

9. To obstruct or impede the free movement of any person on any street, sidewalk or public right of way, or in any place generally open to the public, including parking lots.

10. To solicit from a “captive audience”, which term includes intentionally stationary persons, such as persons standing in lines or seated in public areas.

11. To intimidate, coerce, force or extort a contribution from any person, or to threaten any injury or damage to a person who declines to be solicited or declines to make a contribution.

12. To solicit a contribution from any person by means of a misrepresentation of any kind concerning the solicitor’s name, occupation, physical or mental condition, financial condition, residence, or principal place of business.

13. To make or cause to be made any misstatement of fact or fraudulent misrepresentation in connection with the solicitation of any contribution in the City, or in connection with any application or report required to be filed under this Section.

14. To solicit a contribution using a name, symbol, trademark, logo, service mark, or other identification so closely related to, or similar to that used by, another charitable organization that its use would tend to confuse or mislead a prospective contributor or any other member of the general public.

15. To solicit a contribution using statements, materials, or other means of inducement which indicate that contributions are being raised for any charitable organization which has not, in fact, provided to the City Clerk evidence of its express written consent to the solicitation of those contributions.

16. To stand upon or within any public street, highway or median for the purpose of soliciting or attempting to solicit a contribution from the driver or passengers of any vehicle.

17. To place or to leave at any residence or place of business, any solicitation brochures, flyers, or other printed matter, or any bags, containers, or other receptacles for new or used goods or merchandise, without adequately securing that printed matter or those receptacles in such a manner as to prevent them from creating litter or visual blight in the immediate vicinity.

d. Disclosure By Commercial Fundraisers For Charitable Purposes: A permittee, or any solicitor, agent or representative of a permittee who, for compensation, solicits contributions in the City for charitable purposes must disclose prior to an oral solicitation or sales solicitation made by direct personal contact, radio, television, or telephone, or at the same time as a written solicitation or sales solicitation:

1. That the solicitation or sales solicitation is being conducted by a commercial fundraiser for charitable purposes; and

2. The name of the commercial fundraiser for charitable purposes as registered with the California Attorney General pursuant to section 12599 of the Government Code.

e. Report May Be Required From Permittee: The permittee may be required to file with the City Clerk a financial report setting forth the amount raised by the solicitation, the amount expended in conducting the solicitation, including a report of the wages, fees, commissions, and expenses paid to any person in connection with the solicitation, and the actual or proposed disposition of the balance of any funds collected during the solicitation. The permittee may also be required by the City Clerk to make available for inspection all financial books, records, receipts and other documents whereby the accuracy of the required financial report may be verified. The filing requirement must be imposed by the City Clerk, if at all, within sixty (60) days after the earlier of the expiration of the permit or the termination of the authorized solicitation. The required financial report must be filed within sixty (60) days after the City Clerk’s request. (Ord. #1435, §1)

3-19.5 Summary Suspension Of The Permit:

Whenever it is shown that any person to whom a permit has been issued is in violation of any provision of this Section, or that any solicitor, agent or representative of a permittee has misrepresented the purpose of the solicitation, the City Clerk is authorized to immediately suspend the permit. The City Clerk must either send by registered mail or personally deliver to the permittee written notice of the suspension, stating with specificity the reasons for suspension. The City Clerk must forthwith notify the Sheriff’s Department, and also report the suspension to the City Council at the next regular meeting of that body following the action. The permittee may appeal the suspension in the manner specified by Section 4-9 of this Code. (Ord. #1435, §1)

3-19.6 Definitions:

For the purposes of this Section, the following terms have the following meanings:

a. Charitable organization includes any individual who, or any nonprofit community organization, patriotic, philanthropic, benevolent, educational, religious, fraternal, civic, cultural or service organization, or governmental employee organization which, solicits or obtains contributions solicited from the public for charitable purposes or holds any assets for charitable purposes.

b. Charitable purpose includes an activity, function or objective which would qualify an organization, association, corporation, or other legal entity for tax-exempt status under article 1, chapter 4, part 11, division 2 of the California Revenue and Taxation Code (§§23701 et seq.), regardless of whether that tax-exempt status has actually been established.

c. Commercial fundraiser for charitable purposes means any individual who, or any corporation or other legal entity which, for compensation does either of the following: solicits funds, assets, or property in the City for charitable purposes; or as a result of a solicitation of funds, assets, or property in the City for charitable purposes, receives or controls the funds, assets, or property solicited for charitable purposes. This term does not include: 1) a “trustee” as defined in section 12582 or 12583 of the Government Code; 2) a “charitable corporation” as defined in section 12582.1 of the Government Code, or any employee thereof; 3) an individual who is employed by or under the control of a commercial fundraiser for charitable purposes registered with the California Attorney General; or 4) any federally insured financial institution that holds as a depository funds received as a result of a solicitation for charitable purposes.

d. Contribution includes a pledge, gift or donation of food, clothing, money, or property, as well as any donation under the guise of a loan of property or money.

e. Sales solicitation for charitable purposes means the sale of, offer to sell, or attempt to sell any advertisement, advertising space, book, card, chance, coupon device, magazine subscription, membership, merchandise, ticket of admission, or any other thing or service in connection with which: 1) any appeal is made for charitable purposes; or 2) the name of any charitable organization is used or referred to in that appeal as an inducement for making the sale; or 3) any statement is made to the effect that all or any part of the proceeds of the sale will go to any organization or be used for any charitable purposes.

f. Solicit, or any of its derivatives, means to request, directly or indirectly, a contribution of money, credit, property, financial assistance, or other things of value upon the plea or representation, express or implied, that such money, credit, property, financial assistance, or other things of value will be used by a charitable organization or for a charitable purpose. The term “solicit” also means any of the following methods of obtaining money, credit, property, financial assistance, or other things of value upon the plea or representation, express or implied, that such will be used by a charitable organization or for a charitable purpose: 1) any verbal or written request; 2) an announcement to the media for further dissemination by it concerning an appeal, assemblage, athletic or sports event, bazaar, benefit, campaign, contest, dance, drive, entertainment, exhibition, exposition, party, performance, picnic, sale, or social gathering, which the public is requested to patronize, or to which the public is requested to make a contribution for any charitable purpose connected with that event; 3) the distribution, circulation, mailing, posting or publication of any handbill or other written advertisement which, directly or by implication, seeks contributions from the public for one or more charitable purposes, unless that handbill or other written advertisement has been placed within a business open to the public generally and with the express permission of the owner or operator of that business; or 4) the placement in any public or private place of any box or receptacle for the purpose of receiving contributions. A “solicitation”, as herein defined, is deemed completed when made, whether or not the person making it receives any contribution or makes any sale referred to in this Section.

g. Solicitation for charitable purposes means any request, plea, entreaty, demand, or invitation to give money or property, in connection with which: 1) any appeal is made for charitable purposes; or 2) the name of any charitable organization is used or referred to in that appeal as an inducement for making the gift; or 3) any statement is made to the effect that the gift, or any part of it, will go to any charitable organization or be used for any charitable purpose. (Ord. #1435, §1)

3-19.7 Severability:

If any provision of this Section, or its application to any person or circumstances, is held invalid, that invalidity does not affect other provisions or application of this Section which can be given effect without the invalid provision or application, and to this end the provisions of this Section are severable. (Ord. #1435, §1)

Prior ordinance history: Ord. #1313.

3-19CHARITABLE SOLICITATIONS1: