New CCV Laws

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Tennessee:

Amended its “Solicitation of Charitable Funds” law and changed its name to the “Charitable Solicitations Act.” Tenn. Code § 48-101-501 et seq. SB1661.pdf (tn.gov). Important revisions related to charitable sales promotions are:

  • “Charitable Sales Promotion”. A charitable sales promotion is defined as the advertising or sale by a person who represents that the purchase or use of goods or services will benefit, in whole or in part, a charitable organization or purpose. (Tenn. Code § 48-101-501(b).)
  • Charity Must Be Registered. The law no longer exempts from registration charities that receive contributes from the public of less than $50,000 if such charities conducts a commercial coventurer. (Tenn. Code § 48-101-502(a)(2).)
  • CCV Agreement Terms. A charity must have a written agreement with the commercial coventurer that is signed by two officers of the charity and states the name of the charity and the commercial coventurer, that the commercial coventurer will conduct a charitable sales promotion and the expected start date of the charitable sales promotion. (Tenn. Code § 48-101-519(b).)
  • Charity Must File CCV Agreement. A charity must file an executed CCV agreement at least five days before the initiation of a charitable sales promotion. The filing must be on forms provided by the Tenn. Secretary of State. (Tenn. Code § 48-101-519(b).)
  • Penalties. The Secretary of State may enjoin a charity or commercial coventurer for failing to comply. (Tenn. Code § 48-101-514(b)(3).)
  • Effective Date. The new provisions take effect on July 1, 2024.

Utah

Amended its Charitable Solicitations Act (Utah Code § 13-22-1 et seq.). HB0043 (utah.gov). Important revisions related to charitable sales promotions are:

  • No CCV Filing by Charity. A charity does not have to file a notice of a charitable sales promotion with the secretary of state. (Utah Code § 13-22-22.)
  • Effective Date. The new provisions take effect on January 1, 2025.

Therefore, as a result of the changes in Tennessee and Utah laws, a charity must file materials with regard to conducting a charitable sales promotion in the following states:

  • Arkansas, Connecticut, New Hampshire, New Jersey, Tennessee (as of July 1, 2024) and Utah (until December 31, 2024).

And, there is no change with regard to a commercial coventurer’s obligation to register a charitable sales promotion in the following states:

  • Alabama, Hawaii, Illinois, Massachusetts, Mississippi, South Carolina, and California (if agreement is not signed by two officers of the charity or if there are more than 6 online CCVs in a calendar year).

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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