The NonProfit Times - June 15, 2008 - (Page 15)

REGULATION to take in light of the potential fines, potential negative publicity, and the possibility of other legal sanctions, your new boss tells you that he certainly understands your concerns and, therefore, would like you to recommend which states the organization should “consider” registering with and which states the organization can “take its chances with” and not register with unless contacted by those states. You really love your new job and obviously want to keep it -- not to mention stay on good terms with your new boss. You and your wife just purchased your first home because you’re expecting your first child in three months and next month you have to start making payments on the $110,000 student loan you took out to go to law school and the $52,000 student loan your wife took out to obtain her undergraduate degree. What should be your response to the request? Well, per Bruce Hopkins, the nationallyknown nonprofit expert in this area,“[t]he problem for the lawyer [in this situation] is that he or she ought not to counsel flouting or breaking the law. Thus, the lawyer should advise the charitable organization client that it must adhere to the law of every state in which it is soliciting contributions and not wait for some informal notice or otherwise wait ‘until caught.’ The lawyer ought not advise the charitable organization client to comply in the ‘rigorous regulatory’ states and ‘wait to see what happens’ in the others.” Given the widespread noncompliance with most state solicitation laws,it’s essential that attorneys follow Hopkins’ advice and remember they should not be advising their charitable organization clients, or anyone for that matter, to knowingly violate the law. Furthermore, especially in this age of heightened media and Congressional scrutiny, it’s simply unwise for organizations to knowingly violate these laws. Not only do organizations that do so risk the imposition of significant fines and penalties, they also risk negative media coverage that can often be even more harmful to the organizations’ bottom lines than any fines or penalties that might be imposed. Therefore, if you find that your organization is not properly registered to solicit contributions in every state where it is soliciting that has a registration requirement, you should really take steps to remedy that situation as soon as possible. Even if you’re aware of other organizations that are willing to continue taking their chances and flout the law in this area, you should resolve to follow Mark Twain’s still timely advice:“Always do right. That will gratify some of the people, and astonish the rest.” This will obviously cost your organization additional money, however, that’s usually the case with doing what is right. Nonetheless, it will be worth it because, as was stated in the earlier columns, you’ll sleep better and will be able to pick up the paper each morning knowing that, should your organization be featured in an article on the paper’s front page, it will be for all the good it’s been accomplishing rather than because it was caught violating the law. NPT Karl E. Emerson, the former director of the Pennsylvania Bureau of Charitable Organizations, practices law with Montgomery, McCracken, Walker & Rhoads, LLP in Philadelphia, Pa. CALENDAR OCTOBER OCTOBER Continued from page 9 22-25 The National Committee On Planned Giving will hold its National Conference on Planned Giving in Denver at the Hyatt Regency. Info: www.ncpg.org NOVEMBER 4-7 Business for Social responsibility will hold its annual conference in New York City at the Grand Hyatt Hotel. Info: www.bsr.org 9-11 Independent Sector will hold its annual conference in Philadelphia at the Marriott Downtown. Info: www.independentsector.org To have your event considered for this column, fax the information to (973) 401-0404. Send information at least eight weeks before the event. 12-15 The International Catholic Stewardship Council will hold its annual conference in Chicago at the Hyatt Regency. Info: www.catholicstewardship.org 13-15 Gifts In Kind International will hold a conference on product philanthropy,“Innovation in Product Giving: Creating Value for Business and Community,” at the Westin Alexandra Hotel in Alexandria,Va. Info: www.giftsinkind.com 14-17 The 28th annual International Fundraising Congress will be held at the Leeuwenhorst Hotel in The Netherlands. Info: www.fundraisingcongress.org JUNE 15, 2008 THE NONPROFIT TIMES www.nptimes.com 15 http://www.ncpg.org http://www.catholicstewardship.org http://www.bsr.org http://www.giftsinkind.com http://www.independentsector.org http://www.fundraisingcongress.org http://www.resource-alliance.org/ifc http://www.resource-alliance.org/ifc http://www.nptimes.com

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The NonProfit Times - June 15, 2008 Fundraising Fizzles For Myanmar And China Complaints Filed Against Grant Institute Nonprofit Styles Aren't Out Of Fashion Contents Lights. Camera. Action. Calendar New Boss At Gates Approaching Businesses Big Isn't Always Better Obama And You 'Always Do Right' New Boss At NCNA Three Networks Will Air $100 Million Cancer Fundraiser NPT Jobs Resource Directory

The NonProfit Times - June 15, 2008

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