Arizona De-Regulated For-Profit Fundraising Firms

Arizona De-Regulated For-Profit Fundraising Firms

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Recent media coverage suggests that a 2013 Arizona law repealing nonprofit fundraising registrations may have accidentally eliminated disclosure requirements for for-profit fundraising activities as well, but that result was predicted before that law was passed. The issue came to light as a Scottsdale, Arizona, telemarketing firm and a Texas sheriff’s union came under investigation for not disclosing their fundraising activities to the state as required by Texas law, as well as not disclosing to donors that more than two-thirds of contributions go to the telemarketer. The law to de-regulate fundraising activities of charities in Arizona was proposed and passed on the presumption that regulation activities were a “waste of resources” and a “hassle” for the Secretary of State as well as the charity. However, the legislator who sponsored the bill recently said that eliminating the registration requirements for contracted fundraising firms could have been an oversight. Patrick McWhortor at the Alliance of Arizona Nonprofits pointed out at the time of passage that the bill was poorly drafted and warned that removing all regulations for solicitations may lead to Arizona becoming a haven for fundraising scams. 

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