California Law Requires Registration by ‘Fund-Raising Counsel’

Gov. Pete Wilson of California has approved a measure passed by the Legislature that would, for the first time, specifically require “fund-raising counsel” to register with the state.

The new law closes what lawmakers saw as a loophole in existing statutes by extending registration and disclosure requirements to fund-raising counsel.

For some time, the law has covered “commercial fund raisers” that receive or control solicited donations for charities. But until now it did not require registration by those who advise charities on how to raise funds.

The new law requires fund-raising counsel — those who plan, manage, advise, counsel, consult, or prepare materials for charity solicitations in California — to register each year, provide detailed information about their work, and pay an annual $200 fee.

An exemption is given to those whose total annual gross compensation for helping with such solicitations is $25,000 or less.

Fund-raising counsel will have to register with the state by January 15, 1999.