Recently, Florida Lawmakers signed Senate Bill 740, an extensive 66-page law that addresses charitable solicitation and fundraising by non-profits in the “Sunshine State.” The bill took effect on July 1, 2018. What does that mean for your charity?
If your organization is soliciting in Florida, the new law states that “Each charitable organization… that collects or takes control or possession of contributions made for a charitable purpose must keep records to permit accurate reporting and auditing as required by law.” The most notable part of this new law is how funds should be recorded and used. The law’s primary purpose is to have charity organizations keep accurate records of where money is going and to keep program funds separate from operating funds. Overall, the law attempts to ensure that donor intent is followed. Negligence in this area could be counted against the organization as a failure to properly expend funds.
This law was made with organizations in mind that do not keep clear records. To help donors, as the law states, “When expenditures are not properly documented and disclosed by records, there exists a rebuttable presumption that the charitable organization, sponsor, professional fundraising consultant, or professional solicitor did not properly expend such funds.”
Are you currently fundraising in Florida? If any of the above information with regard to how your charity organizes and reports is concerning, call Capstone to assist you in compliance with the new regulations. We are here to help!