Regulation of US Charitable Solicitations Since 1954

Charity registration and reporting: a cross-jurisdictional and theoretical analysis of regulatory impact

“…3 Yet, public choice theory and regulatory capture assume a coherent body of collective actors who will lobby (Conybeare 1982) such as would occur in the charity sector when it organizes itself through peak or umbrella bodies. 4 Politicians also apply regulatory pressure when they impose personal or party preferences on registration decisions and the cost or style of regulation (Posner 1974;Barber 2012). An example from Simon (1995) is Congress' significant changes to the US Tax Reform Act 1969 which resulted in charitable gifts being diverted to charities that were less-fully regulated (and even to some entities that were not charities) and increased charities' operational costs at the expense of charitable acts.…”

The Effect of an Online Self-Assessment Tool on Nonprofit Board Performance

“…In the United States, Barber (2012) notes similar regulatory concerns and challenges with regard to charitable fundraising. Barber, like Phillips, reports limits to solving fundraising challenges through donor information.…”

The Palgrave Handbook of Global Philanthropy

“…Most states require nonprofits to register with the state government, and many require nonprofits to file annual financial reports (Barber, 2012). The Attorney General of each state can investigate charities suspected of fraud or other criminal wrongdoing.…”

“…The Attorney General of each state can investigate charities suspected of fraud or other criminal wrongdoing. Some states have tried to limit the amount that charities can spend on fund-raising and administrative costs through legislation, but the Supreme Court struck down these laws in the 1980s as a violation of the constitutional right to freedom of speech (Barber, 2012). State governments have the responsibility of ensuring that nonprofits follow all restrictions or instructions that donors place on gifts.…”

“…The Federal Trade Commission prosecutes criminal operations that pose as charities, but does not regulate legitimate charities (Brody, 1996;Barber, 2012). The Patriot Act, passed in 2001 after the September 11 attacks, allows the Treasury department to freeze the assets of charities that support overseas terrorist activity, and the IRS usually strips these charities of 501(c) (3) status.…”