# Title 50 — Public Welfare

## Chapter 50-22 — Charitable Organizations Soliciting Contributions

### § 50-22-01. Definitions.

As used in this chapter, unless the context otherwise requires:
1. "Accounting year" means the twelve-month period on which a charitable organization
keeps its financial records.
2. a. "Charitable organization" means a person that engages in or purports to engage
in solicitation for a charitable purpose and includes a chapter, branch, area office,
or similar affiliate or a person soliciting contributions within the state for a parent
charitable organization.
b. The term "charitable organization" does not include:
(1) An organization that solicits funds for an institution of higher learning.
(2) An organization that uses only volunteer unpaid fundraisers and that solicits
funds for a political subdivision or other government entity or for a civic or
community project in which the contributions received are used solely for the
project and none of the contributions inure to the benefit of any individual.
(3) A private or public elementary or secondary school.
(4) A charitable organization or person that solicits contributions for any person
specified by name at the time of the solicitation if all the contributions
received are transferred within a reasonable time after receipt to the person
named or that person's parent, guardian, or conservator with no restriction
on their expenditure and with no deduction.
(5) A religious society or organization that is exempt from filing a federal annual
information return pursuant to Internal Revenue Code section 6033(a)(2)(A)
(i) and (iii) [26 U.S.C. 6033(a)(2)(A)(i) and (iii)] or Internal Revenue Code
section 6033(a)(2)(C)(i) [26 U.S.C. 6033(a)(2)(C)(i)].
(6) Any candidate for national, state, or local elective office or political party or
other committee required to file information with the federal election
commission, a state election commission, or an equivalent office or agency.
3. "Charitable purpose" means a charitable, benevolent, philanthropic, religious, social
service, welfare, educational, cultural, artistic, or public interest purpose, either actual
or purported.
4. "Contribution" means cash or the promise, grant, or pledge of any money, credit,
assistance, or property of any kind or value, including the promise to pay, provided in
response to a solicitation. "Contribution" includes, in the case of a charitable
organization offering goods and services to the public, the difference between the
direct cost of the goods and services to the charitable organization and the price at
which the charitable organization or a person acting on behalf of that organization
resells those goods or services to the public. "Contribution" does not include bona fide
fees, dues, or assessments paid by members of an organization, provided that:
a. Membership is not conferred in exchange for a contribution in response to a
solicitation; or
b. Membership provides no benefit in addition to the right to vote or otherwise
participate in the organization and the right to receive literature.
5. "Person" means any individual, organization, association, partnership, corporation, or
limited liability company.
6. "Professional fundraiser" means a person who, for financial compensation or profit,
performs for a charitable organization a service in connection with which contributions
are, or will be, solicited in this state by the compensated person or by a compensated
person the person employs, procures, or engages to solicit; or a person who for
compensation or profit plans, manages, advises, consults, or prepares material for, or
with respect to, the solicitation in this state of contributions for a charitable
organization. A bona fide full-time salaried officer or employee of a charitable
organization maintaining a permanent establishment within the state may not be
deemed to be a professional fundraiser.

An attorney, investment counselor, or banker who advises any person to make a
contribution to a charitable organization may not be deemed, as the result of that
advice, to be a professional fundraiser.
7. "Solicitation" and "solicit" mean the request to the public or member of the public for a
contribution on the representation that the contribution will be used in whole or in part
for a charitable purpose, including:
a. An oral request made in person or by telephone, radio, television, electronic
communication including the internet, or other advertising or communication
media;
b. A written or other recorded or published request, that is mailed, sent, delivered,
circulated, distributed, posted in a public place, or advertised or communicated
through any medium available to the public and described in subdivision a;
c. A sale of or attempt to sell any good or service in which the good or service is
priced above fair market value or when it is otherwise represented that some
portion of the purchase price will be used for a charitable purpose; or
d. An announcement inviting the public to attend an assembly, event, exhibition,
performance, or social gathering of any kind where admission is conditioned on
the receipt of a contribution or at which function contributions will be otherwise
solicited.
A solicitation is deemed to have occurred regardless of whether the party solicited
makes a contribution.
### § 50-22-02. Registration of charitable organization.

1. A charitable organization may not solicit contributions from persons in this state by any
means unless, prior to a solicitation, there is on file with the secretary of state upon
forms prescribed by the secretary of state a registration statement containing the
following information:
a. Legally established name.
b. Name or names under which it solicits contributions.
c. Form of organization.
d. Date and place of organization.
e. Business telephone number.
f. Street and mailing address of principal office in this state, if any.
g. Name and address of the person having custody of books and records within this
state.
h. Total compensation, including salaries, fees, bonuses, fringe benefits, severance
payments, and deferred compensation, paid to employees by the charitable
organization and all its affiliated organizations.
i. Federal and state tax-exempt status.
j. Denial at any time by any governmental agency or court of the right to solicit
contributions.
k. Date on which accounting year of the charitable organization ends.
l. General purposes for which organized.
m. General purposes for which contributions to be solicited will be used.
n. Methods by which solicitation will be made.
o. Board, group, or individual having final discretion or authority as to the distribution
and use of contributions received.
p. Amount of total contributions received during the accounting year last ended.
2. The registration statement filed by a charitable organization must include a registration
fee of twenty-five dollars and a financial statement of the organization's operation for
its most recent twelve-month period immediately preceding the filing of the first
registration statement. An initial registration filed by a charitable organization in July or
August following the close of the annual reporting period described in section 50-22-04
is valid until September first of the subsequent year. The registration continues unless
revoked by a court of competent jurisdiction, by the secretary of state, or as provided
in this chapter. If a charitable organization fails to file a registration statement or other

information required to be filed by the secretary of state under this chapter, or
otherwise violates this chapter, the secretary of state, upon notice by certified mail to
its last-known address, may deny or suspend the application for registration. An
adjudicative proceeding under this chapter must be conducted in accordance with
chapter 28-32 unless otherwise provided in this chapter. A notice required under this
chapter or chapter 28-32 may be made by certified mail. In the event of revocation, the
secretary of state shall retain the registration fee.
3. An officer of the charitable organization must execute the registration statement and
must certify that the registration statement has been executed pursuant to resolution of
the board of directors or trustees, or if there be no such board, then by its managing
group which has approved the content of the registration statement. The executing
officer also must certify that the board of directors or trustees, or if there be no such
board, its managing group, have assumed, and will continue to assume, responsibility
for determining matters of policy and have supervised, and will continue to supervise,
the finances of the charitable organization.
4. If a chapter, branch, area office, or similar affiliate of a charitable organization is
supervised and controlled by a parent organization located within or outside the state,
the affiliate may file a registration statement on behalf of the parent organization in
addition to or as part of its own registration statement or the parent organization may
file a registration statement on behalf of the affiliate in addition to or as part of its own
registration statement.
### § 50-22-02.1. Registration of professional fundraiser - Bond required.

1. A person may not act as a professional fundraiser subject to this chapter unless that
person has registered with the secretary of state. The registration statement must be in
writing in the form prescribed by the secretary of state and must be accompanied by a
fee of one hundred dollars. The registration information must be available to the public
as a matter of public record. Each registration expires on September first unless, prior
to September first, the public fundraiser registers by filing a new registration statement,
accompanied by a fee of one hundred dollars. The forms containing the information
must include the following:
a. The name of the professional fundraiser.
b. The street and mailing address and telephone number of the professional
fundraiser.
c. The type of fundraising to be conducted in this state.
d. The name of the auditor, accountant, employee, agent, or other person who
maintains or possesses the professional fundraiser's records.
e. A list of all officers, agents, or employees to work under the applicant's direction.
f. A list of all licensed charitable organizations with which the applicant has
contracts within this state.
2. The professional fundraiser shall also include, as part of the registration statement, a
bond in which the professional fundraiser is the principal obligor. The bond must be in
the sum of twenty thousand dollars, with one or more responsible sureties whose
liability in the aggregate as the sureties will at least equal that sum. In order to
maintain the registration, the bond must be in effect for the full term of the registration.
The bond, which may be in the form of a rider to a larger blanket liability bond, must
run to the state and to any person who may have a cause of action against the
principal obligor of the bond for any liabilities resulting from the obligor's conduct of
any activities subject to this chapter.
3. The professional fundraiser shall also include, as part of the registration statement, a
copy of the contract between any charitable organization and the professional
fundraiser. The contract must:
a. Be in writing;
b. Contain information that will enable the secretary of state to identify the services
the professional fundraiser is to provide, including whether the professional
fundraiser will at any time have custody of contributions; and

c. Be submitted within ten days of the date of execution.
4. A parent organization filing on behalf of one or more chapters, branches, or affiliates
and a federated fundraising organization filing on behalf of its member agencies shall
pay a single annual registration fee for itself and the chapters, branches, affiliates, or
member agencies included in the registration statement. If any professional fundraiser
fails to file any registration statement or other information required to be filed by the
secretary of state under this chapter or otherwise violates this chapter, the secretary of
state, upon notice by certified mail to its last-known address, may deny or suspend the
application for registration. Any adjudicative proceedings under this chapter must be
conducted in accordance with chapter 28-32 unless otherwise specifically herein
provided. Any notice required under this chapter or chapter 28-32 may be made by
certified mail.
5. A professional fundraiser may not solicit on behalf of a charitable organization that is
not registered.
### § 50-22-02.2. Registrant name registration or certificate of authority required.

The secretary of state may not issue or renew a registration provided for in this chapter if
the name of the registrant is an entity whose name is not in some manner registered with the
secretary of state as a corporation, limited liability company, trade name, fictitious name of a
partnership, limited partnership, or limited liability partnership. For a registrant that is a foreign
entity, a registration under this chapter means the same as a license or permit under section
10-19.1-134, 10-32.1-74, 10-33-127, or 45-22-19, or other substantially equivalent statute for
the purpose of procuring a certificate of authority or similar authorization to act in this state.
### § 50-22-03. Application for license - Contents.

Repealed by S.L. 1999, ch. 425, § 7.
### § 50-22-04. Information required to be filed annually.

1. Every charitable organization that is required to file or that files a registration statement
pursuant to section 50-22-02 shall file an annual report. The annual report must be
delivered to the secretary of state, along with a ten dollar fee, on or before September
first of each year.
The secretary of state may extend the filing date for the annual report of any
charitable organization, if a written application for extension is received before the
filing deadline an extension may be granted for a single year, or permanently at the
request of the charitable organization. A charitable organization with a fiscal year
ending within three months prior to the filing deadline may make a written request for
an extension to apply to reports for subsequent years until the fiscal year is changed. A
filing date may not be extended under this subsection beyond December first of any
given year an annual report is due.
Information submitted must be given as of the close of the business on the
thirty-first day of December next preceding the date herein provided for the filing of the
report, or, in the alternative, the date of the end of the fiscal year next preceding this
report may be used.
2. The annual report must be filed on forms prescribed by the secretary of state and must
include a financial statement covering the immediately preceding twelve-month period
of operation. An officer of the charitable organization shall execute the financial
statement which must include a balance sheet, statement of income and expense, and
statement of functional expenses. The financial statement must be filed on or attached
to forms furnished by the secretary of state and must be prepared in accordance with
generally accepted accounting principles so as to make a full disclosure of the
following, including necessary allocations between each item and the basis of the
allocations:
a. Total receipts and total income from all sources;
b. Cost of management and general;

c. Program services;
d. Cost of fundraising;
e. Cost of public education;
f. Funds or properties transferred out of state with explanation as to recipient and
purpose, unless the information is not reasonably available, in which case the
charitable organization may, with the approval of the secretary of state, provide a
reasonable estimate of the amounts transferred;
g. Total net amount disbursed or dedicated within this state, broken down into total
amounts disbursed or dedicated for each major purpose, charitable or otherwise,
unless the information is not reasonably available, in which case the charitable
organization, with the approval of the secretary of state, may provide a
reasonable estimate of the required information;
h. Names of professional fundraisers used during the accounting year and the
financial compensation and profit resulting to each professional fundraiser; and
i. Total compensation, including salaries, fees, bonuses, fringe benefits, severance
payments, and deferred compensation, paid to employees by the charitable
organization and all its affiliated organizations.
3. Unless otherwise required by this section, the financial statement need not be certified.
4. Upon request of the secretary of state or attorney general, the charitable organization
must promptly provide a copy of all tax or information returns, including all schedules
and amendments, submitted by the charitable organization to the internal revenue
service for the period covered by the annual report, except any schedules of
contributors to the organization.
5. The secretary of state or attorney general may make a detailed examination of the
accounts of any charitable organization conducting a solicitation for funds within this
state. Every charitable organization subject to this chapter shall keep a full and true
record in the form that will enable the charitable organization to accurately provide the
information required by this chapter. The registration of a charitable organization is
ineffective immediately upon its failure to file an annual report, including the payment
of all required fees. Any such organization, if in default under this chapter, may not file
a new registration statement until it files the required annual report with the secretary
of state.
Failure to file the annual report and fee as required will mean the organization may not solicit in
this state.
### § 50-22-04.1. Limitations on amount of payments for solicitation or funding.

Repealed by S.L. 1985, ch. 531, § 1.
### § 50-22-04.2. Contract or statement filing.

Repealed by S.L. 2003, ch. 419, § 9.
### § 50-22-04.3. Fraud - Misrepresentation.

A charitable organization, professional fundraiser, or any agent or employee of a charitable
organization or professional fundraiser may not use any deceptive act or practice, fraud, false
pretense, false promise, or misrepresentation with the intent that others rely thereon in
connection with the solicitation of a contribution for or on behalf of a charitable organization.
### § 50-22-05. Enforcement - Penalties - Remedies.

Any person conducting a solicitation in violation of this chapter, or failing to properly
complete and promptly file any report, tax return, or other information required under this
chapter, is guilty of a class A misdemeanor. Any person conducting a solicitation after the
person's registration is revoked is guilty of a class C felony. The criminal penalties in this section
are in addition to all other causes of action, remedies, and penalties available to the state.
Whenever the attorney general or any state's attorney has reason to believe or is advised
by the secretary of state that the charitable organization or professional fundraiser is operating

in violation of this chapter, the attorney general or state's attorney may bring an action in the
name of the state against the charitable organization and its officers, the professional fundraiser,
or any other person who has violated this chapter or who has participated or is about to
participate in any solicitation or collection by employing any device, scheme, artifice, false
representation or promise, to defraud or obtain money or other property, to enjoin the charitable
organization or professional fundraiser or other person from continuing the violation, solicitation,
or collection, or engaging therein, or doing any acts in furtherance thereof and for any other
relief the court determines appropriate, including the imposition of civil penalties in the amount
of up to five thousand dollars per violation of this chapter and the denial of registration under
this chapter for a period of up to five years. The attorney general, in enforcing this chapter, has
all the powers provided in this chapter or chapter 51-15 and may seek all remedies in this
chapter or chapter 51-15. The remedies, duties, prohibitions, and penalties of this chapter are
not exclusive and are in addition to all other causes of action, remedies, and penalties in
chapter 51-15, or otherwise provided by law.
### § 50-22-06. Costs recoverable in court proceeding.

The attorney general is entitled to an award of reasonable attorney's fees, costs, and
expenses of an investigation and action brought under this chapter.
### § 50-22-07. Rules.

The secretary of state may adopt rules the secretary of state deems necessary and
appropriate to fully implement the provisions of this chapter in accordance with chapter 28-32,
but which need not comply with section 28-32-07.
