Charitable Solicitation Case Study

The last related case is Riley v. National Federation of the Blind which involves the North Carolina Charitable Solicitation Act. The North Carolina Charitable Solicitation Act determined what professional fundraiser may charge according to a three-tiered schedule. “A fee up to 20% of receipts collected is deemed reasonable. A fee of 20% and 35% is deemed unreasonable upon a showing that the solicitation at issue did not involve the "dissemination of information, discussion, or advocacy relating to public issues as directed by the [charitable organization] which is to benefit from the solicitation. A fee exceeding 35% is presumed unreasonable, but the fundraiser may rebut the presumption by showing that the fee was necessary” (Riley v. National Federation of Blind). The Act also wanted professional fundraisers to disclose to potential donors the average percentage of gross receipts actually turned over to charities. In addition, the Act stated that professional fundraisers may not solicit without having their license approved. On the other hand, volunteer fundraisers may solicit immediately after submitting their application but before getting approved. A coalition of professional fundraisers, charitable …show more content…
The Charitable Registry defines a professional fundraiser as “someone who conducts, advises, acts as a consultant in connection with the solicitation of contribution for or on behalf of a charitable organization” (Charitable Registry). The courts pointed out that a professional fundraiser intends to solicit money for benefit of someone other than himself while a panhandler does it for himself. In Schaumburg v. Citizens for a Better Environment, State of Maryland v. Joseph H. Munson, and Riley v. National Federation of the Blind, the court held that the First Amendment protected charitable