South Carolina H 4396: Solicitation of charitable funds

Bill Text

2025-2026 Bill 4396 Text of Previous Version (Apr. 23, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 4396

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS 
BY AMENDING SECTION 33-56-50, RELATING TO ORGANIZATIONS EXEMPT FROM 
REGISTRATION PROVISIONS, SO AS TO INCREASE THRESHOLDS FOR CHARITIES REQUESTING 
EXEMPTIONS; BY AMENDING SECTION 33-56-70, RELATING TO CONTRACTS WITH 
PROFESSIONAL SOLICITORS, SO AS TO LIMIT FILING REQUIREMENTS TO COMMERCIAL 
CO-VENTURERS, UNDER CERTAIN CONDITIONS; BY AMENDING SECTION 33-56-90, RELATING 
TO REQUIRED DISCLOSURES, SO AS TO REQUIRE ANY ENTITY THAT IS SOLICITING FOR 
CHARITABLE ORGANIZATIONS TO DISCLOSE THE LEGAL NAME AND PURPOSE OF THE CHARITY 
FOR WHICH THEY ARE SOLICITING; BY AMENDING SECTION 33-56-110, RELATING TO 
REGISTRATION OF PROFESSIONAL SOLICITORS, FUND-RAISING COUNSELS, OR COMMERCIAL 
CO-VENTURERS, SO AS TO LIMIT REGISTRATION REQUIREMENTS FOR COMMERCIAL 
CO-VENTURERS SOLICITING MORE THAN ten THOUSAND DOLLARS IN A SINGLE SOLICITATION 
CAMPAIGN; AND BY AMENDING SECTION 33-56-120, RELATING TO MISREPRESENTATIONS, SO 
AS TO PROHIBIT COMMERCIAL CO-VENTURERS FROM USING REGISTRATION WITH THE SECRETARY 
OF STATE AS AN ENdorsEMENT BY THE STATE.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1.A. Section 
33-56-50 of the S.C. Code is amended to read:

 Section 
33-56-50. (A) The following are not 
required to file registration statements with the Secretary of State if their 
fundraising activities are not conducted by professional solicitors, 
professional fundraising counsel, or commercial coventurers:

 (1) an educational institution which 
solicits contributions from only its students and their families, alumni, 
faculty, friends, and other constituencies, trustees, corporations, 
foundations, and individuals who are interested in and supportive of the programs 
of the institution;

 (2) a person requesting contributions 
for the relief of an individual specified by name at the time of the 
solicitation when all of the contributions collected, without deductions of any 
kind, are turned over to the named beneficiary for his use, as long as the 
person soliciting the contributions is not a named beneficiary;

 (3) a charitable organization which (a) does not intend to solicit, collect, earn, or receive 
contributions from the public gross revenue 
in excess of twenty-five thousand dollars in during a calendar fiscal year and (b) has received a letter of tax exemption from the 
Internal Revenue Service, if all functions, including fundraising activities, 
of the organization exempted pursuant to this item are conducted by persons who 
are compensated no more than five hundred dollars in a year for their services 
and no part of their assets or income inures to the benefit of or is paid to an 
officer or a member. If the contributions raised from the 
public, whether or not the contributions are actually received by a charitable 
organization during any calendar year, are in excess of these amounts gross revenue solicited, collected, earned, or received by the 
organization exceeds this amount, within thirty 
days after the date the contributions exceed these amounts, then the organization must register with and report to 
the Secretary of State as required by this chapter within 
thirty days after the date the gross revenue exceeds this amount;

 (4) an organization which solicits 
exclusively from its membership, including a utility cooperative;

 (5) a veterans' organization which has 
a congressional charter; and

 (6) the State, its political 
subdivisions, and an agency or a department of the State which are subject to 
the disclosure provisions of the Freedom of Information Act.

 (B) The following are not required to 
file registration statements with the Secretary of State regardless of whether 
or not their fundraising activities are conducted by professional solicitors, 
professional fundraising counsel, or commercial coventurers:

 (1) a public school district located in 
the State and any public school teaching pre-K through grade twelve located 
within the public school district. For purposes of this chapter, the term 
"public school" includes any student organization within the school that does 
not maintain separate financial accounts or a separate federal Employer's 
Identification Number (EIN) from the school and whose fundraising revenues are 
deposited in the school's student activity fund; and

 (2) a charitable organization that does 
not intend to solicit, 
collect, earn, or receive contributions from the 
public gross revenue in excess of seven ten thousand five hundred dollars during a 
calendar fiscal year. If the contributions raised from the public, whether or not the 
contributions are actually received by