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SB 454

Charitable Solicitations - As enacted, clarifies, by removing certain language, that a professional solicitor includes servants or employees specially employed by or for a charitable organization who are engaged in the solicitation of contributions. - Amends TCA Title 48, Chapter 101.

114th Regular Session (2025-2026) Introduced by Tom Hatcher

Tennessee law now clarifies that charity employees hired to solicit donations must be regulated as professional solicitors, expanding compliance oversight of nonprofit fundraising operations.

Pub. Ch. 169
#charitablesolicitations
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Bill Summary · SB 454

Legislative bill overview

SB 454 modifies Tennessee's charitable solicitation law by clarifying the definition of "professional solicitor" to explicitly include employees and servants hired by charitable organizations to solicit contributions. The bill removes ambiguous language that previously created uncertainty about whether in-house charity employees counted as professional solicitors under state regulation.

Why is this important

This clarification affects how charitable organizations must comply with Tennessee's solicitation regulations and transparency requirements. By defining in-house fundraising staff as professional solicitors, the law ensures these employees fall under the same regulatory oversight as third-party fundraisers, potentially requiring additional licensing, reporting, or compliance measures for charities employing dedicated solicitation staff.

Potential points of contention

  • Regulatory burden on smaller charities: Smaller nonprofits with limited budgets may face increased compliance costs if the professional solicitor classification triggers licensing fees or administrative requirements they weren't previously subject to.
  • Definitional ambiguity remaining: The bill removes language but doesn't clearly define what constitutes an employee "specially employed" for solicitation—leaving potential gray areas about part-time staff or employees with mixed responsibilities.
  • Competitive impact: Clarifying that in-house solicitors are regulated equally to third-party fundraisers may affect which fundraising model charities choose, potentially favoring external contract solicitors if regulations are less burdensome on one side.

Compiled from official sources — confirm details with the bill’s official record.

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