Regulation of charitable funds

2025-2026 Bill 4662: Regulation of charitable funds - South Carolina Legislature Online

South Carolina General Assembly
126th Session, 2025-2026
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H. 4662
STATUS INFORMATION
General Bill
Sponsors: Reps. Wooten, Wetmore, Pope and Oremus
Companion/Similar bill(s): 715, 4396
Document Path: LC-0207HA26.docx
Introduced in the House on January 13, 2026
Introduced in the Senate on March 26, 2026
Currently residing in the Senate Committee on
Labor, Commerce and Industry
Summary: Regulation of charitable funds
HISTORY OF LEGISLATIVE ACTIONS

Date

Body

Action Description with journal page number

12/16/2025

House

Prefiled

12/16/2025

House

Referred to Committee on
Labor, Commerce and Industry

1/13/2026

House

Introduced and read first time (
House Journal-page 49
)

1/13/2026

House

Referred to Committee on
Labor, Commerce and Industry
(
House Journal-page 49
)

3/24/2026

House

Committee report: Favorable
Labor, Commerce and Industry
(
House Journal-page 15
)

3/25/2026

House

Read second time (
House Journal-page 34
)

3/25/2026

House

Roll call Yeas-113 Nays-0 (
House Journal-page 35
)

3/26/2026

House

Read third time and sent to Senate (
House Journal-page 32
)

3/26/2026

Senate

Introduced and read first time (
Senate Journal-page 12
)

3/26/2026

Senate

Referred to Committee on
Labor, Commerce and Industry
(
Senate Journal-page 12
)

View the latest
legislative information
at the website
VERSIONS OF THIS BILL
12/17/2025
03/24/2026

Indicates Matter
Stricken

Indicates New Matter

Committee Report

March 24, 2026

H. 4662

Introduced
by Reps. Wooten, Wetmore, Pope and Oremus

S. Printed 3/24/26--H.

Read the first time January 13, 2026

________

The committee on House Labor,
Commerce and Industry

To whom was referred a Bill (H. 4662) to amend
the South Carolina Code of Laws by amending Section
33-56-50
, relating to
organizations exempt from registration provisions, so as to regulate charitable,
etc., respectfully

Report:

That they have duly and carefully considered
the same, and recommend that the same do pass:

WILLIAM HERBKERSMAN for
Committee.

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill modifies the limits under which
charitable organizations are exempt from filing registration statements with
the Secretary of State. Currently, a charitable organization whose fundraising
activities are not conducted by professional solicitors, professional
fundraising counsel, or commercial co-venturers is exempt from registration
requirements with the Secretary of State's Office if they do not intend to
solicit or receive contributions from the public in excess of $20,000. All
charitable organizations, regardless of whether or not fundraising activities
are conducted by professional solicitors, professional fundraising counsel, or
commercial co-venturers are exempt from registration requirements with the
Secretary of State's Office if they do not intend to solicit or receive
contributions from the public in excess of $7,500. Under this bill, a
charitable organization whose fundraising activities are not conducted by
professional solicitors, professional fundraising counsel, or commercial co-venturers
is exempt from registration requirements with the Secretary of State's Office
if they do not solicit, collect, earn, or receive gross revenue in excess of
$25,000 per fiscal year. The bill further states that all charitable
organizations, regardless of whether or not fundraising activities are
conducted by professional solicitors, professional fundraising counsel, or
commercial co-venturers are exempt from registration requirements with the
Secretary of State's Office if they do not solicit, collect, earn, or receive
gross revenue in excess of $10,000 per fiscal year. If the gross revenue
solicited, collected, earned, or received by an organization exceeds the limit
established by the bill, the organization must register with the Secretary of
State within thirty days.

The bill further establishes a registration
exemption for professional co-venturers receiving charitable funds for a
contribution campaign in the amount of $10,000 or less per solicitation
campaign. Currently, §33-56-110 requires all professional co-venturers to
register with the Secretary of State, regardless of the amount of funds
received per solicitation campaign.

The bill also clarifies several
registration requirements for professional fundraising counsel, professional
solicitors, or commercial co-venturers, and requires the disclosure of the
legal name and purpose of a charitable organization at the initial time of
solicitation.

The Secretary of State's Office indicates
that the implementation of the bill will be managed with existing staff and
resources and will have no expenditure impact on the office.

State Revenue

This bill modifies the limits under which
charitable organizations are exempt from filing registration statements with
the Secretary of State from $20,000 in charitable contributions to $25,000 in
gross revenue or $7,500 in charitable contributions to $10,000 in gross revenue
depending on the type of fundraising activities and establishes a registration
exemption for professional co-venturers receiving charitable funds for a
contribution campaign in the amount of $10,000 or less per solicitation campaign.

This bill may reduce Other Funds fee
revenue for the Secretary of State's Office by exempting more charitable
organizations and commercial co-venturers from registration requirements.
Currently, under §33-56-160, all administrative fees charged for the registration
of charitable organizations as well as professional coventurers are retained by
the office for administrative purposes and totaled $913,800 in FY 2024-25.
However, the Secretary of State's Office anticipates that the reduction in fee
revenue as a result of the bill will be minimal.

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

_______

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 REGULATE CHARITABLE ORGANIZATIONS
THAT SOLICIT, COLLECT, EARN, OR RECEIVE MORE THAN A STATED AMOUNT IN A FISCAL
YEAR THAT REGISTER WITH THE SECRETARY OF STATE BY INCREASING REPORT
REQUIREMENTS; BY AMENDING SECTION
33-56-70
, RELATING TO CONTRACTS WITH
PROFESSIONAL SOLICITORS, SO AS TO REQUIRE WRITTEN CONTRACTS BETWEEN A
CHARITABLE ORGANIZATION AND PROFESSIONAL FUNDRAISING COUNSEL, PROFESSIONAL
SOLICITOR, OR COMMERCIAL CO-VENTURER TO BE FILED WITH THE SECRETARY OF STATE
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, FUNDRAISING COUNSELS, OR COMMERCIAL CO-VENTURERS, SO
AS TO PROVIDE REGISTRATION REQUIREMENTS FOR COMMERCIAL CO-VENTURERS; 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.

B
e it enacted by the
General Assembly of the State of South Carolina:

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

S
ection
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 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
,
then
the organization shall
register and report to the Secretary of State as required by this chapter
within thirty days after the date the
contributions exceed
these amounts
gross revenue exceeds this amount
.

(
C) A
charitable organization claiming to be exempt from the registration provisions
of this chapter and which solicits charitable contributions must submit
annually to the Secretary of State, on forms prescribed by the Secretary of
State, the name, address, and purpose of the organization and a statement
setting forth the reason for the claim for exemption. If appropriate, the
Secretary of State or his appropriate division shall issue a letter of
exemption that may be exhibited to the public. A filing fee is not required of
an exempt organization.

(
D) A
professional solicitor, professional fundraising counsel, or commercial
coventurer conducting fundraising activities on behalf of an exempt
organization must comply with the registration and filing requirements of this
chapter.

B
.
S
ection
33-56-70
(A), (D), and (E) of the S.C. Code is
amended to read:

(
A) A contract or agreement between any
professional fundraising counsel, professional solicitor, or commercial
co-venturer
required to register with the Secretary of
State pursuant to Section
33-56-110

and a charitable organization must
be in writing and filed with the Secretary of State at least ten days before
the professional fundraising counsel, professional solicitor, or commercial
co-venturer begins any solicitation activity or any other activity contemplated
by the contract or agreement in this State. In addition, a professional
solicitor or commercial co-venturer shall attach a completed Notice of
Solicitation form that complies with the requirements of this section to the
contract or agreement filed with the Secretary of State.

(
D)
Solicitations or services pursuant to a contract or agreement between a
charitable organization and a professional solicitor, professional fundraising
counsel, or commercial co-venturer may not begin in this State until the
contract or agreement has been filed with the Secretary of State and until both
the charitable organization and the professional solicitor, professional
fundraising counsel, or commercial co-venturer are registered
properly
with the Secretary of State
as required pursuant to this chapter
.

(
E)
Within ninety days after a solicitation campaign has been completed, or within
ninety days after the anniversary of a solicitation campaign lasting more than
one year, a professional solicitor or commercial co-venturer
required to register with the Secretary of State pursuant to
Section
33-56-110

shall file with the Secretary of State a joint
financial report for the campaign, including gross revenue, an itemization of
expenses, and the amount paid to the charitable organization. This joint
financial report must be completed on the form prescribed by the Secretary of
State, signed by both an authorized official of the professional solicitor or
commercial co-venturer and an authorized official of the charitable
organization, and certified to be true.

C
.
S
ection
33-56-90
of the S.C. Code is amended to read:

S
ection
33-56-90
.
(
A)

At the initial time of solicitation, a charitable organization, professional
solicitor, commercial co-venturer, or other person engaging in the solicitation
of charitable contributions must disclose the legal name and purpose of the
charitable organization for which it is soliciting.

(
B)
At the initial time of
solicitation, a professional solicitor must disclose its status as a
"professional" or "paid" solicitor. The professional solicitor also must
disclose the registered true name of the professional fundraising organization
for which it works and the registered true name, location, and purpose of the
charitable organizations for which it is soliciting. Upon oral or written
request of the solicited party, a professional solicitor also must disclose the
percentage of gross receipts with which the professional solicitor is
compensated including the amount the professional solicitor must be reimbursed
as payment for fundraising costs. The professional solicitor also must disclose
the guaranteed minimum percentage of gross receipts to be remitted or retained
by the charitable organization excluding the amount which the charitable
organization must pay for fundraising costs.

(B)
(
C)
Upon oral or written request by the solicited party,
the professional solicitor must deliver to the solicited party within fifteen
business days of the request a:

(
1)
financial statement of the charitable organization disclosing assets,
liabilities, fund balances, revenue, and expenses for the preceding fiscal
year. This financial statement must be the most recently submitted annual
financial report pursuant to Section
33-56-60
; and

(
2)
copy of the professional solicitor's or charitable organization's current
registration certification from the Secretary of State.

(C)
(
D)
A professional solicitor that fails to comply with the
provisions of this section is liable for an administrative fine not to exceed
two thousand dollars for each separate violation.

(D)
(
E)
An offense committed in violation of this section is
considered to have been committed at the place where the solicitation either
was initiated or was received.

D
.
S
ection
33-56-110
(A) of the S.C. Code is amended to
read:

(
A) A person may not act as a
professional solicitor
,
or

professional fundraising counsel
, or commercial
co-venturer
for a charitable organization subject to the provisions of
this chapter without first having registered with the Secretary of State.
A person may not act as a commercial co-venturer for a
charitable organization subject to the provision of this chapter without first
registering with the Secretary of State, if the person intends to solicit,
collect, earn, or receive charitable contributions in excess of ten thousand
dollars during a solicitation campaign.
Registration includes filing of
a complete application and filing fee. An application for registration must be
in writing under oath or affirmation in the form prescribed by the Secretary of
State and accompanied by an annual fee of fifty dollars.

E
.
S
ection
33-56-110
(J) of the S.C. Code is amended by
adding:

(
J) If a commercial co-venturer
intending to be exempt from registration with the Secretary of State collects,
earns, or receives charitable contributions in excess of ten thousand dollars
during a solicitation campaign, then the commercial co-venturer shall register
and report to the Secretary of State as required by this chapter within thirty
days after the date the contributions exceed this amount.

F
.
S
ection
33-56-120
(B) of the S.C. Code is amended to
read:

(
B) A charitable organization,
professional fundraising counsel,
or
professional
solicitor
, or commercial co-venturer
shall not use
or exploit the fact of registration
with the Secretary of
State
so as to lead the public to believe that the registration in any
way constitutes an endorsement or approval by the State. However, the use of
the following statement is not considered a prohibited exploitation:
"Registered with the Secretary of State as required by law
.
"
.
Registration does not imply endorsement of a public
solicitation for contributions.

S
ECTION 2. This act takes effect upon approval
by the Governor.

----XX----

This web page was last updated on March 24, 2026 at 6:57 PM