New Jersey Tightens Fund-Raising Law

New Jersey tightened its charitable-solicitations law last month to crack down on misleading fund-raising practices. It also gave a tax break to stores that sell donated goods in behalf of charitable organizations.

The fund-raising law adds wording to the state’s charitable-solicitations law that specifically bars fund raisers from making misleading statements to potential donors.

The new provision says that even if the information presented by fund raisers is “literally true,” it may not be “presented in a manner that has the capacity to mislead the average consumer.”

Violators of the new rule will be fined $7,500 for the first offense, $15,000 for subsequent offenses.

The new tax law exempts volunteer-run stores that support a charitable cause by charging consumers state sales tax on donated merchandise. Such stores may include shops run by hospital auxiliary associations or fire departments.

For more information about the new laws, go to http://www.njleg.state.nj.us.