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Charitable Solicitation Licensing Division Annual Report July 1, 2010 through June 30, 2011 North Carolina Department of the Secretary of State Elaine F. Marshall, Secretary Charitable Solicitation Licensing Division P.O. Box 29622 Raleigh, NC 27626-0622 Phone: 919-814-5400 Email: [email protected] www.sosnc.gov 2010 - 2011 Charitable Solicitation Licensing Annual Report North Carolina Department of the Secretary of State Table of Contents Introduction: Message from the Secretary Mission Statement and Contact Information Section One: Executive Summary of Professional Solicitor Activities 1A: North Carolina Data Sorted by Solicitor Name 1B: National Data Sorted by Solicitor Name Section Two: Charitable/Sponsor Organizations Current Registry Section Three: Exempt Organizations Registry Section Four: Professional Fundraisers Current Registry 4A: Fundraising Consultants Registry 4B: Solicitors Registry Section Five: Solicitors Contract Report Section Six: Charitable/Sponsor Organizations Filing Audited Financial Statements Section Seven: Investigation Statistics Report Complaints with Violations Report Enforcement Actions Report Appendices: Appendix A: North Carolina General Statute 131F Appendix B: Charitable/Sponsor Organization Initial Application Appendix C: Fundraising Consultant Application Appendix D: Solicitor Application Appendix E: Enforcement Complaint Form and Instructions State of North Carolina Department of the Secretary of State ELAINE F. MARSHALL SECRETARY OF STATE Each December, the North Carolina Department of the Secretary of State Charitable Solicitation Licensing (CSL) Division issues the Charitable Solicitation Licensing Division Annual Report. The Report is released at the holiday season to provide the public with this important information as they make decisions to give to charity. This report relates only to those charities using a professional fund-raiser and otherwise required by law to register with the Department of the Secretary of State. Even though we all continue to experience difficult economic times, North Carolinians continued to show their generosity through gifts to charities over the past year. This year, North Carolinians responded to solicitations from professional fund-raisers in the amount of $26,716,762. Of those donation dollars, $13,223,329 went directly to the charity for which the campaign was being conducted, resulting in an average 49.49% return to the charity for each dollar donated. In contrast, national solicitation campaigns that included North Carolina citizens and were reported to our office reflected $473,581,137 in gross dollars donated, with only $220,310,970, or 46.52% of each donated dollar actually going to the charitable organization. Slightly more of each dollar donated in North Carolina was returned to the charity for which the campaign was conducted. As a consumer, you have the right to know how your donated dollars will benefit the charity for which an appeal is conducted. The percentage return per dollar for each individual solicitor campaign conducted and reported to CSL is included in this Report and so that consumers can utilize this information to make wise giving decisions. The CSL Enforcement Unit continues to work on behalf of North Carolina citizens to identify organizations that may be violating North Carolina’s Charitable Solicitation laws. When an organization is identified as noncompliant, our Department informs the organization of the legal requirements and works to bring the organization into compliance. Sometimes though, a violation is beyond a compliance issue at which point the Department imposes financial penalties on behalf of the public to amend the situation. This year, the Department completed 149 investigations, identifying 93 violations of the Charitable Solicitations Act and resulting in the collection of $136,550 in financial penalties from charitable organizations and professional fund raisers. I encourage all North Carolinians to utilize the information available in the Annual Report and via this office’s website at www.sosnc.com to make informed giving decisions. I commend and thank the citizens of North Carolina for their continued generosity to the charities working throughout our great State. Yours truly, Elaine F. Marshall PO BOX 29622 ∙ RALEIGH, NC 27626-0622 Mission Statement The mission of the North Carolina Department of the Secretary of State is to serve and protect the citizens, the business community, and governmental agencies by facilitating business activities, by providing accurate and timely information, and by preserving documents and records. The purpose of the Charitable Solicitation Licensing Division is to maintain a registry of charitable and sponsor organizations licensed to solicit donations within the state. In addition, the Division licenses professionals who fundraise on behalf of charitable or sponsor organizations. The Division also responds to consumer concerns regarding charitable solicitations and works to enforce the Charitable Solicitation Law on behalf of all North Carolinians. The Charitable Solicitation Licensing Annual Report is published by the Charitable Solicitation Licensing Division to serve as a resource for North Carolina citizens as they work to make educated decisions for their charitable dollars. Contact Information for the Charitable Solicitation Licensing Division Post Office Box 29622 Raleigh, North Carolina 27626-0622 919-814-5400 1-888-830-4989 NC Residents Toll Free [email protected] www.sosnc.gov Heather L. Black, Director Angelia Boone-Hicks, Licensing & Filing Division Supervisor Scarlette Gardner, Attorney and Enforcement Supervisor Jason Ricks, Investigator Linda J. Driver, Senior Document Examiner, Licensing & Filing Jeanette Blount, Document Examiner, Licensing & Filing Natalie R. Carter, Document Examiner, Enforcement Donna Payne, Document Examiner, Licensing & Filing Jennifer L. Dupree, Office Assistant The North Carolina Department of the Secretary of State does not discriminate on the basis of race, color, national origin, sex, religion, age, or disability in the employment or the provision of services. Section One: Executive Summary of Professional Solicitor Activities The Executive Summary serves as an overview of the percentage of contributions charities receive from professional fundraisers. This information has been entered un-audited from final accounting reports filed by the fundraisers with the Charitable Solicitation Licensing Division of the North Carolina Department of the Secretary of State. Some final accounting reports filed with the Department reflect planned giving campaigns that may not immediately realize results. This section of the Annual Report reflects two significantly different sets of data. The first set of data reflects reported solicitation activities and contributions solely from North Carolina citizens. The second set of data in this section reflects data reported for national solicitation campaigns that include North Carolina citizens. Individual final accounting reports provided by a filing organization should be consulted to obtain the most complete and thorough information. In both sections, the Report is sorted alphabetically by the name of the professional solicitor. To obtain a copy of a final accounting report on record with the Charitable Solicitation Licensing Division, go to www.sosnc.com, click on “Charitable Solicitations”, and then click on “Search Our Registry.” In the Search box, enter the name of the professional solicitor whose financial information you seek. Once the CSL Search Results box appears, click on the solicitor’s name to access the file. When the file appears, click on “Campaign Information” (this will be at the bottom of the page). Go to the most recent year’s filings and click on the folder icon. If a final accounting report is on file, it will appear in the filing under the title “Final Accounting.” You will be able to view a PDF version of the final accounting report on file with the Department. (Note: The information in this section does not include data representative of staff level fundraising professionals employed directly by charitable organizations in the State.) Section 1A: Executive Summary of Professional Solicitor Activities Conducted in North Carolina Sorted alphabetically by Solicitor Name ([HFXWLYH6XPPDU\5HSRUWRI6ROLFLWRU V$FWLYLWLHVLQ1RUWK&DUROLQD -XO\WR-XQH Solicitor Report File Charity or Sponsor *URVV Net to Charitable or Percentage to Date 5HFHLSWV Sponsor Charitable or Sponsor Organization Organization All Pro Productions, Inc. 12/22/2010 Paralyzed Veterans of America $3,220.00 $579.60 18.00% Alpha and Omega Promotions 10/13/2010 Bethlehem Volunteer Fire $16,768.00 $7,702.35 45.93% Department, Inc. Alpha and Omega Promotions 03/31/2011 Cherryville Rescue Squad $12,252.00 $6,341.00 51.75% Alpha and Omega Promotions 10/12/2010 Crowders Mountain Volunteer Fire & $22,785.61 $11,015.28 48.34% Rescue, Inc. Alpha and Omega Promotions 03/31/2011 Dallas Rescue Squad $21,930.67 $11,355.73 51.78% Alpha and Omega Promotions 11/24/2010 Stanley Civil Defense Rescue $29,815.00 $13,631.25 45.72% Alpha and Omega Promotions 11/24/2010 WACO Volunteer Fire Department $12,591.00 $6,130.70 48.69% Americalist, a division of Haines & 06/01/2011 March of Dimes Foundation $204,814.00 $92,633.00 45.23% Company, Inc. Americalist, a division of Haines & 05/27/2011 The Leukemia and Lymphoma $26,629.44 $26,379.16 99.06% Company, Inc. Society, Inc. Area Benefits, Inc. 09/28/2010 Fraternal Order of Police, Cabarrus $31,732.00
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