Indiana Charities Challenge Law

Charities in Indiana are trying to persuade the courts to strike down a new state law that requires professional telephone solicitors to tell potential donors what percentage of their gifts will go to charity. They say the law, which took effect July 1, violates charities’ free-speech rights.

The Muscular Dystrophy Family Foundation, in Indianapolis, and the Indiana Firefighters Association, in Carmel, Ind., filed a lawsuit in a federal District Court. The charities asked the court to halt enforcement of the new law until it reached a verdict on whether the statute was constitutional.

Lawmakers who drafted the legislation said that they were concerned that charities received too small a sum from many companies that solicit in their behalf.

Regulations similar to the Indiana law have been struck down in several states. And the U.S. Supreme Court ruled in 1988 that requiring solicitors to tell donors what percentage of donations they keep is unconstitutional.