As society becomes more reliant on the Internet and mobile phones, more clients have also retained us to advise them regarding restrictions applicable to email marketing found in CAN-SPAM, restrictions on text messages to cell phones as well as the “opt-in” mechanisms used on websites to obtain consumer information for later marketing purposes.

Generally, a certificate of authority is required in each state where an organization, which is not incorporated in the state, but has a physical location, has a presence in the state, or transacts business in the state. Most state statutes explain that transacting business in interstate commerce does not amount to “transacting business” in the state and alone does not require an organization to obtain a certificate of authority.

Thus, if a charity or fundraiser only calls residents of a particular state and does not otherwise have any physical presence or other contact with the state, it will most likely not be required to obtain a certificate of authority in that state.

There are, however, five (5) exceptions to this rule. California, the District of Columbia, Georgia, Michigan, and North Dakota will require an organization to obtain a certificate of authority if it solicits residents of the state via telephone even though the organization has no presence or other contact with the state.

A transfer of cash or other property by a donor to a charitable organization in return for an annuity payable over one or two lives, under which the actuarial value of the annuity is less than the value of the cash or other property transferred and the difference in value constitutes a charitable deduction for federal tax purposes.

An organization that is tax exempt under Section 501(c)(3) of the Internal Revenue Code or any organization established for any voluntary health and welfare, benevolent, philanthropic, patriotic, educational, humane, scientific, public health, environmental conservation, civic, or other eleemosynary (charitable) purpose.

Many states allow certain charitable organizations to conduct charitable games including bingo, raffles, and other games; other states forbid these games altogether. The state statutes impose a wide range of restrictions and limitations upon these charitable games. As such, your organization should first determine where you want to conduct the charitable game and carefully review those state statutes regulating the conduct of charitable games.

Any purpose described in Section 501(c)(3) of the Internal Revenue Code or any voluntary health and welfare, charitable, benevolent, philanthropic, patriotic, educational, humane, scientific, public health, environmental conservation, civic, or other eleemosynary (charitable) purpose.

A game conducted by a qualified charitable organization in which a participant buys a ticket for a chance at a prize with the winner determined by a random drawing to take place at a set location and date.