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Charitable Solicitations Act

Background

The Colorado Charitable Solicitations Act (CCSA) requires nonprofit organizations that solicit donations from the public to register and report annually on their fundraising activity. Professional fundraising consultants and companies paid to solicit donations on behalf of nonprofits (“paid solicitors”) are also required to register and report.

Unless specifically excepted by law, every charity soliciting contributions in Colorado must register with the Secretary of State beforehand. If charities fail to register or update their registration upon sufficient notification, they may have to pay fines up to an amount limited by statute.The Act is intended to prevent fraudulent charitable solicitations that result in lost money for donors and nonprofits. CCSA helps ensure trust of nonprofits by making information available to the public on current fundraising activity in Colorado.

2018 Updates to Rules

On July 13, 2018, the Colorado Secretary of State issued a notice of proposed rulemaking primarily to conform the rules to changes made by HB 17-1158. The Secretary held a rulemaking hearing on August 23rd and the final rule was released on September 21. Visit our webpage on the rulemaking to access a summary of the changes.

    2018 Charitable Solicitations Rulemaking    

Past Comments on Updates to CCSA Rules: 

Recent Bills:

  • HB 17-1158 Charitable Solicitations Regulation
    • requires a nonprofit to maintain an address of record rather than a registered agent.
    • requires two renewal reminder notices be sent to the address of record and by email before a charity is subject to fines.
    • allows administrative hearings to be requested within 30 days of issuance of a suspension notice rather than 5 days after receipt.
    • requires an organization to report changes that materially affect its business identity no more than 30 days after the change.
    • charities with withdrawn or expired registrations must file financial reports covering the part of the year they are registere
  • Charitable Fraud Enhanced Enforcement Measures (HB 16-1129) 
    • enhances penalties against charitable fraud;
    • requires paid solicitors to obtain surety bonds and disclose conflicts of interest.
  • HB 16-1318 Charitable Solicitations Regulation- 1318 was not funded by the General Assembly but it proposes the following changes:
    • clarified annual reporting for changes to a nonprofit's business identity or registration status, etc;
    • proposed a new cease and desist order for soliciting contributions without registering;
  • HB 14-1206 Modify Charitable Solicitations
    • requires all CCSA registrants to maintain a registered agent;
    • clarifies notice requirements and when fees and fines are applied. 
  • HB 12-1236 Law Passed to Streamline State Reporting by Colorado Nonprofits
    • automatically grants a 3 month CCSA extension for nonprofits who obtain an IRS Form 990 extension;
    • exempts persons who raise funds only to benefit a named individual from registration;
    • clarifies that grant writers are not required to register separately as paid solicitors unless their compensation is based on a percentage of the funds they raise.

Resources: