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Bill

SB 1311

RELATING TO SOLICITATION OF FUNDS FROM THE PUBLIC.

2025 Regular Session Introduced by Ron Kouchi

SB 1311 mandates registration and disclosure for fundraisers, enhancing transparency and accountability to protect donors and ensure effective use of contributions.

Carried over to 2026 Regular Session.
#fundraising #platforms #registration #solicitations
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Bill Summary · SB 1311

Summary of Bill SB 1311: Relating to Solicitation of Funds from the Public

Bill Number: SB 1311
Introduced On: January 21, 2025
Current Status: Referred to PSM/CPN, JDC
Classification: Bill
Subject Areas: Fundraising, Platforms, Registration, Solicitations

Purpose and Intent

Bill SB 1311 aims to regulate the solicitation of funds from the public, enhancing transparency and accountability in fundraising activities. The bill seeks to establish a framework for organizations and individuals who solicit donations, ensuring that potential donors are well-informed about the entities requesting contributions.

Key Provisions

The bill includes several important provisions:

  • Registration Requirements:
    Organizations and individuals that solicit funds from the public will be required to register with a designated state authority. This registration process will include providing information about the organization’s mission, financial practices, and how funds will be used.

  • Disclosure Obligations:
    Fundraisers must disclose specific information to potential donors, including:

    • The purpose of the fundraising campaign
    • The percentage of funds that will be allocated to the intended cause versus administrative costs
    • Any affiliations with other organizations or entities

  • Regulation of Fundraising Platforms:
    Online platforms that facilitate fundraising will also be subject to regulations. They must ensure that registered fundraisers comply with the disclosure requirements and that they provide a secure environment for transactions.

  • Penalties for Non-Compliance:
    The bill outlines penalties for organizations and individuals that fail to comply with the registration and disclosure requirements. This may include fines or revocation of the right to solicit funds.

Who Would Be Affected

  • Nonprofit Organizations:
    Charitable organizations that rely on public donations will need to adhere to the new registration and disclosure requirements.

  • Individuals Fundraising for Causes:
    Individuals conducting personal fundraising campaigns (e.g., crowdfunding for medical expenses) will also be required to comply with the regulations.

  • Online Fundraising Platforms:
    Websites and applications that facilitate fundraising will need to implement measures to ensure compliance with the new regulations.

Procedural Aspects

  • Legislative Timeline:

    • January 21, 2025: Bill introduced and pending introduction.
    • January 23, 2025: Passed First Reading.
    • January 27, 2025: Referred to the PSM/CPN and JDC committees for further consideration.

  • Related Legislation:
    This bill has a companion bill, HB 992, which may address similar issues or provide additional context for the proposed regulations.

Conclusion

SB 1311 represents a significant step towards increasing transparency in fundraising activities. By establishing clear guidelines for registration and disclosure, the bill aims to protect donors and ensure that funds are used effectively for their intended purposes. As the bill progresses through the legislative process, stakeholders in the fundraising community will need to prepare for the potential changes in regulations.

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

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