Chapter 5.25 SOLICITORS AND SOLICITATIONS

(1) Solicitation for the purpose of selling magazine subscriptions is permitted as an activity in interstate commerce, subject to the following requirements:

(a) A company desiring to send representatives or agents throughout the city to solicit subscriptions must first provide to the chief of police satisfactory proof that the publisher or jobber is engaged in interstate commerce. A notarized statement signed by an officer of the company will normally suffice.

(b) Each company referred to in subsection (1)(a) of this section shall provide the chief of police with a list of all representatives or agents to be employed in the city; such list to include the full name, social security number, home address and temporary address in the city of each such representative or agent and such other identifying information as may be required by the chief of police.

(c) Each representative or agent shall carry, and display on request, a photo identification card to be provided by the company, which card identifies the representative or agent as an authorized company solicitor.

(2) A violation of this section shall constitute a Class 4 misdemeanor. (Code 1985, § 24-2).

Cross reference – Penalty for Class 4 misdemeanor, SCC 1.05.100.

Article II. Solicitations by Charitable or Civic Organizations*

*State law references – Solicitations of contributions, Code of Virginia, § 57-48 et seq.; ordinances regulating charitable or civic organizations soliciting within city, § 57-63.

5.25.030 Definitions.

For the purposes of this article, the following words and phrases shall have the meanings respectively ascribed to them by this section:

“Charitable organization” means any organization which is or holds itself out to be organized or operated for any charitable purpose or which soli-cits contributions from the public or obtains contributions solicited from the public. This definition shall not be deemed to include any church or convention or association of churches primarily operated for nonsecular purposes, and no part of the net income of which inures to the direct benefit of any individual; nor shall it include any political party, as defined in Sections 24.2-101 and 24.2-682 of the Code of Virginia (see also Section 57-63 of the Code of Virginia), or any political campaign committee required by state or federal law to file a report or statement of contributions and expenditures; nor shall it include any labor union registered under Section 40.1-76 of the Code of Virginia, or any trade association; nor shall it include any authorized individual who solicits, by authority of such organization, solely on behalf of a registered or exempt charitable organization or on behalf of an organization excluded from the definition of charitable organization.

“Charitable purpose” means any charitable, benevolent, humane, philanthropic, patriotic or eleemosynary purpose and the purpose of influencing legislation or influencing the actions of any public official or instigating, prosecuting or intervening in litigation.

“Civic organization” means any local service club, veterans’ post, fraternal society or association, volunteer fire or rescue group or civic league or association of 10 or more persons not organized for profit, but operated exclusively for educational or charitable purposes, including the promotion of community welfare, and the net earnings of which are devoted exclusively to charitable, educational, recreational or social welfare purposes.

“Commissioner of revenue” or “commissioner” means the commissioner of revenue of the city or a member of his staff to whom he may delegate his duties under this article.

“Contribution” means any gift, bequest, devise or other grant of any money, credit, financial assistance or property of any kind of value, including the promise to contribute, except payments by the membership of an organization for membership fees, dues, fines or assessments, or for services rendered to individual members, and except money, credit, financial assistance or property received from any governmental authority. The term “contribution” shall not include any donation of blood or any gift made pursuant to Article 2 of Chapter 8 of Title 32.1 (Section 32.1-289 et seq.) of the Code of Virginia.

“Federated fund-raising organization” means any federation of independent charitable organizations which have voluntarily joined together, including, but not limited to, a United Fund or Community Chest, for purposes of raising and distributing money for and among themselves and where membership does not confer operating authority and control of the individual agencies upon the federated group organization.

“Fund-raising expenses” mean the expenses of all activities that constitute or are an integral and inseparable part of a solicitation.

“Membership” means those persons to whom, for payment of fees, dues, assessments and the like, an organization provides services and confers a bona fide right, privilege, professional standing, honor or other direct benefit, in addition to the right to vote, elect officers or hold offices. The term “membership” shall not include those persons who are granted a membership upon making a contribution as the result of solicitation.

“Parent organization” means that part of a charitable organization which coordinates, supervises or exercises control over policy, fund-raising and expenditures, or assists or advises one or more chapters, branches or affiliates.

“Person” means any individual, organization, trust, foundation, association, partnership, corporation, society or other group or combination acting as a unit.

“Professional fund-raising counsel” means any person who, for a flat fixed fee under a written agreement, plans, conducts, manages, carries on, advises or acts as a consultant, whether directly or indirectly, in connection with soliciting contributions for, or on behalf of, any charitable or civic organization, but who actually solicits no contributions as part of such services. A bona fide salaried officer or employee of a registered or exempt charitable organization or of a registered parent organization shall not be deemed to be a professional fund-raising counsel.

“Professional solicitor” means any person who, for a financial or other consideration, solicits contributions for, or on behalf of, a charitable or civic organization, whether such solicitation is performed personally or through his agents, servants or employees or through agents, servants or employees specially employed by or for a charitable or civic organization, who are engaged in the solicitation of contributions under the direction of such person; or any person who, for a financial or other consideration, plans, conducts, manages, carries on, advises or acts as a consultant to a charitable or civic organization in connection with the solicitation of contributions, but does not qualify as a professional fund-raising counsel. A bona fide salaried officer or employee of a registered or exempt charitable organization or of a registered parent organization shall not be deemed a professional solicitor.

“Sale,” “sell,” or “sold” mean the transfer of any property or the rendition of any service to any person in exchange for consideration, including any purported contribution without which such property would not have been transferred or such services would not have been rendered.

“Solicit” or “solicitation” mean the request or appeal, directly or indirectly, for any contribution on the plea or representation that such contribution will be used for a charitable purpose, including without limitation, the following methods of requesting such contribution:

(1) Any oral or written request.

(2) Any announcement to the press, over the radio or television, or by telephone or telegraph concerning an appeal or campaign to which the public is requested to make a contribution for any charitable purpose connected therewith.

(3) The distribution, circulation, posting or publishing of any handbill, written advertisement or other publication which, directly or by implication, seeks to obtain public support.

(4) The sale of, or any offer or attempt to sell, any advertisement, advertising space, subscription, ticket or any service or tangible item in connection with which any appeal is made for any charitable purpose or where the name of any charitable organization is used or referred to in any such appeal as an inducement or reason for making any such sale, or when or where, in connection with any such sale, any statement is made that the whole or any part of the proceeds from any such sale will be donated to any charitable purpose. “Solicitation,” as defined herein, shall be deemed to occur when the request is made, at the place the request is received, whether or not the person making the same actually receives any contribution. (Code 1985, § 24-13).

State law reference – Similar provisions, Code of Virginia, § 57-48.

5.25.040 Exemptions from article generally.

(1) Nothing in this article shall be construed as being applicable to the American Red Cross or any of its local chapters.

(2) No charitable organization shall be required to comply with the provisions of this article, if such organization has registered with the state commissioner of agriculture and consumer services or if such organization is a chapter, branch or affiliate included in the consolidated report of an organization or federated organization which is so registered, and if such organization registers, with the commissioner of revenue, its name, the names of its solicitors and the dates and times that they will be soliciting in the city. (Code 1985, § 24-14).

State law reference – Similar provisions, Code of Virginia, §§ 57-60(d), 57-63(d).

5.25.050 Exemptions from certain provisions of article.

(1) The following shall be exempt from the registration requirements of SCC 5.25.120 and the requirements of SCC 5.25.150, but shall otherwise be subject to the provisions of this article:

(a) Educational institutions that are accredited by the state board of education or by a regional accrediting association or by an organization affiliated with the National Commission on Accrediting, the Association Montessori Internationale or the American Montessori Society, any foundation having an established identity with any of the aforementioned educational institutions, and any other educational institution confining its solicitation of contributions to its student body, alumni, faculty and trustees, and their families.

(b) Persons requesting contributions for the relief of any individual specified by name at the time of the solicitation, when all of the contributions collected, without any deductions whatsoever, are turned over to the named beneficiary for his use.

(c) Charitable organizations which do not intend to solicit and receive, during a calendar year, and have not actually raised or received, during any of the three next preceding calendar years, contributions from the public in excess of $5,000, if all of their functions, including fund-raising activities, are carried on by persons who are unpaid for their services and if not part of their assets or income inures to the benefit of, or is paid to, any officer or member. Nevertheless, if the contributions raised from the public, whether all of such is or is not received by any charitable organization during any calendar year, shall be in excess of $5,000, it shall, within 30 days after the date it shall have received total contributions in excess of $5,000, register with and report to the commissioner of revenue as required by this article.

(d) Organizations which solicit only within the membership of the organization by the members thereof.

(e) Organizations which have no office within the city and which solicit in the city from without the commonwealth solely by means of telephone or telegraph, direct mail or advertising in national media.

(f) Health care institutions which have been granted tax-exempt status under Section 501(c)(3) of the Internal Revenue Code and any supporting organization which exists solely to support any such institution.

(g) Civic organizations.

(2) No charitable or civic organization shall be exempt under this section unless it shall submit, before any solicitation, to the commissioner of revenue, on a form to be prescribed by him, the name, address and purpose of the organization and a statement setting forth the reason for the claim for exemption. Parent organizations may file consolidated applications for exemptions for any chapters, branches or affiliates which they believe to be exempt from the registration provisions of this article. If exempted, the commissioner shall issue a letter of exemption which may be exhibited to the public. No registration fee shall be required of any exempt organization. The letter of exemption shall remain in effect as long as the organization continues to solicit in accordance with its claim for exemption. (Code 1985, § 24-15).

State law reference – Similar provisions, Code of Virginia, § 57-60.

5.25.060 Reciprocal agreements with other municipalities.

The commissioner of revenue may enter into a reciprocal agreement with the appropriate authority of any other municipality within the commonwealth for the purpose of exchanging information with respect to charitable organizations, professional fund-raising counsel and professional solicitors. Pursuant to such agreements, the commissioner may accept information filed by charitable organizations, professional fund-raising counsel and professional solicitors with the appropriate authority of another locality within this commonwealth, in lieu of the information required to be filed by this article. (Code 1985, § 24-16).

5.25.070 Article does not authorize unlawful acts or omissions or decrease liability imposed by law.

Nothing contained in this article shall be construed as making lawful any act or omission which is now unlawful, or as decreasing the liability, civil or criminal, of any person imposed by existing laws. (Code 1985, § 24-17).

State law reference – Similar provisions, Code of Virginia, § 57-62.

5.25.080 Appeals from orders under article.

Any person aggrieved by any final order of the commissioner of revenue under this article, denying such person any right to which he is entitled under law, may, within 15 days from the date of such order, apply for relief to the circuit court of the city. Either party may appeal any final order of such court in the same manner as provided by law in cases other than cases of appeals of right. (Code 1985, § 24-18).

State law reference – Similar provisions, Code of Virginia, § 57-67.

5.25.090 Investigations to enforce article.

The commissioner of revenue, upon his own motion or upon the complaint of any person, may investigate any charitable or civic organization, professional fund-raising counsel or professional solicitor to determine whether such organization, counsel or solicitor has violated any of the provisions of this article. (Code 1985, § 24-19).

State law reference – Similar provisions, Code of Virginia, § 57-59(b).

5.25.100 Violations of article generally.

A violation of any provision of this article shall constitute a Class 3 misdemeanor. (Code 1985, § 24-20).

Cross reference – Penalty for Class 3 misdemeanor, SCC 1.05.100.

5.25.110 Actions to enjoin violations of article.

Whenever the city attorney shall have reason to believe that any charitable or civic organization, professional fund-raising counsel or professional solicitor is operating in violation of the provisions of this article, or has knowingly and willfully made any false statement in any registration application or statement, report or other information required by this article, or that a charitable or civic organization, professional fund-raising counsel or professional solicitor has failed to file a registration statement required by this article, or that there is employed or is about to be employed, in any solicitation or collection of contributions for a charitable or civic organization, any device, scheme or artifice to defraud or to obtain money or property by means of any false pretense, representation or promise, or that the officers or representatives of any charitable or civic organization, professional fund-raising counsel or professional solicitor have refused or failed, after notice, to produce any records of such organization, or that the funds raised by solicitation activities are not devoted or will not be devoted to the charitable purposes of the charitable or civic organization, the city attorney may, in addition to all other actions authorized by law, bring an action against such charitable or civic organization and its officers and such professional fund-raising counsel or professional solicitor to enjoin such charitable or civic organization or professional fund-raising counsel or professional solicitor from continuing such violation, solicitation or collection, or engaging therein, or doing any acts in furtherance thereof, and for such other relief as the court deems appropriate. (Code 1985, § 24-21).

State law reference – Similar provisions, Code of Virginia, § 57-59(c).

5.25.120 Registration of organizations.

(1) Every charitable organization, except as otherwise provided herein, which intends to solicit contributions within the city, or have funds solicited on its behalf, shall, prior to any solicitation, file an initial registration statement with the commissioner of revenue upon forms acceptable to him. Each registration statement shall thereafter be refiled on or before the first day of the fourth calendar month of the next and each following fiscal year in which such charitable organization is engaged in solicitation activities within the city. It shall be the duty of the president, chairman or principal officer of such charitable organization to file the statements required herein. Such statements shall contain the following information:

(a) The name of the organization and the purpose for which it was organized.

(b) The principal address of the organization, the address of any offices in the city and its designated agent for process within the commonwealth. If no such agent is designated, the organization shall be deemed to have designated the secretary of the commonwealth. If the organization does not maintain an office, the statement shall include the name and address of the person having custody of its financial records.

(d) The place where and the date when the organization was legally established, the form of the organization, and a reference to any determination of its tax-exempt status under the Internal Revenue Code.

(e) The names and addresses of the officers, directors, trustees and the principal salaried executive staff officer.

(f) A copy of a balance sheet and income statement, with the opinion of an independent public accountant, for the organization’s immediate preceding fiscal year, or a copy of a financial statement certified by an independent public accountant covering, in a consolidated report, complete information as to all the preceding year’s fund-raising activities of the charitable organization, showing the kind and amount of funds raised, fund-raising expenses and allocation or disbursement of funds raised; provided, that no charitable organization which has registered with the commissioner of revenue for the current and next preceding three years, or is exempt from registration for such years under SCC 5.25.050, shall be required to file any financial information. The report required by this subsection shall comply with the accounting standards prescribed in SCC 5.25.150.

(g) A statement showing the computation of the percentages provided for in subsection (2) of this section and SCC 5.25.170.

(h) A statement indicating whether the organization intends to solicit contributions from the public directly or have such done on its behalf by others.

(i) A statement indicating whether the organization is authorized by any other governmental agency within the commonwealth to solicit contributions and whether it, or any officer, professional fund-raiser or professional solicitor thereof, is or has ever been enjoined by any court or otherwise prohibited from soliciting contributions in any jurisdiction.

(j) The general purpose or purposes for which the contributions to be solicited shall be used.

(k) The name or names under which it intends to solicit contributions.

(l) The names of the individuals or officers of the organization who will have the final responsibility for the custody of the contributions.

(m) The names of the individuals or officers of the organization responsible for the final distribution of the contributions.

(n) A statement indicating whether the organization, or any officer, professional solicitor or professional fund-raiser thereof, has ever been convicted of a felony and, if so, a description of the pertinent facts.

(2) Each charitable organization shall, as a part of its registration statement, compute the percentage which its fund-raising expenses for its preceding fiscal year bore to its support received directly from the public during such year.

(3) Each chapter, branch or affiliate located in the city, except an independent member agency of a federated fund-raising organization, shall separately report the information required by this section or report the information to its parent organization, which shall then furnish such information as to itself and all local affiliates, chapters and branches in a consolidated form. All affiliated organizations included in a consolidated registration statement shall be considered as one charitable organization for all purposes of this article. If a consolidated registration statement is filed, all statements thereafter filed shall be upon the same basis, unless permission to change is granted by the commissioner of revenue.

(4) Each federated fund-raising organization located in the city shall report the information required by this section in a consolidated form. Any federated fund-raising organization may elect to exclude from its consolidated report information relating to the separate fund-raising activities of all of its independent member agencies. No member agency of a federated fund-raising organization shall be required to report separately any information contained in such a consolidated report; provided, however, that any separate solicitation campaign conducted by, or on behalf of, any such member agency in the city shall nevertheless be subject to all other provisions of this article.

(5) The registration forms shall be verified under oath or affirmation by an authorized officer of the charitable organization.

(6) Every charitable organization which submits an independent registration to the commissioner of revenue shall pay an annual registration fee of $10.00. A parent organization filing on behalf of one or more chapters, branches or affiliates or a federated fund-raising organization filing on behalf of its member agencies shall pay a single annual registration fee for itself and such chapters, branches, affiliates or member agencies included in the registration statement. All fees paid hereunder shall be credited to the office of the commissioner of revenue for reimbursement of administrative expenses. (Code 1985, § 24-22).

State law reference – Similar provisions, Code of Virginia, §§ 57-49, 57-58, 57-63(a)(3).

5.25.130 Reports by organizations with no local office and which solicit solely by telephone, mail, etc.

Any charitable organization having no office or place of business within the city and soliciting in the city from without the city solely by telephone or telegraph, direct mail or advertising in local or national media, and any professional fund-raising counsel or professional solicitor engaged by such an organization, shall file with the commissioner of revenue any report which would otherwise be required of it; provided, such charitable organization maintains an office or place of business within the commonwealth. (Code 1985, § 24-23).

State law reference – Similar provisions, Code of Virginia, § 57-51(b).

5.25.140 Publication of warning as to unregistered organizations.

If the commissioner of revenue shall determine that any charitable or civic organization, not registered with his office and not exempt from registration, irrespective of whether such organization is subject to the jurisdiction of the city, is soliciting in the city, directly or indirectly, by any means, including, without limitation, by telephone or telegraph, by direct mail or by advertising in national media, he may, after 10 days’ written notice mailed to the charitable or civic organization, cause to be printed, in one or more newspapers published or distributed in the city, a notice in substantially the following form:

WARNING – UNREGISTERED CHARITABLE SOLICITATION

The organization named below has solicited contributions from area residents for allegedly charitable purposes. It has not registered with, or been granted the appropriate exempt status by, the Commissioner of Revenue of the City of Staunton, as required by law. Contributors are cautioned that their contributions to such organization may be used for noncharitable purposes.

A copy of such warning shall immediately thereupon be forwarded to the administrator of consumer affairs for the commonwealth. (Code 1985, § 24-24).

State law reference – Similar provisions, Code of Virginia, § 57-52.

5.25.150 Records to be kept by organizations.

Every charitable organization shall keep true fiscal records for all fiscal years in accordance with the standards set out in Section 57-53 of the Code of Virginia. Such records shall be retained for a period of at least three years after the end of the period to which they relate. (Code 1985, § 24-25).

5.25.160 Contracts between organizations and fund-raising counsel and professional solicitors.

(1) Every contract or agreement between a professional fund-raising counsel and a charitable or civic organization must be in writing and shall be filed with the commissioner of revenue within 10 days after such contract or written agreement is entered into.

(2) Every contract, or a written statement of the nature of the arrangement to prevail in the absence of a contract, between a professional solicitor and a charitable or civic organization shall be filed with the commissioner of revenue within 10 days after such contract is entered into or such arrangement is agreed to.

(3) All agreements and arrangements between a professional fund-raising counsel and a charitable or civic organization must be reduced to writing before being executed or acted upon. (Code 1985, § 24-26).

State law reference – Similar provisions, Code of Virginia, § 57-54.

5.25.170 Disclosure to be made by professional solicitors.

It shall be unlawful for a professional solicitor to solicit contributions from a prospective donor, without fully disclosing to the prospective donor, at the time of solicitation, the minimum percentage of any amount contributed which will be received by the charitable or civic organization for its own use; provided, that if such percentage is at least 70 percent, no such disclosure need be made. (Code 1985, § 24-27).

State law reference – Similar provisions, Code of Virginia, § 57-55.1.

5.25.180 Statements, reports, contracts, etc., filed under article constitute public records – Charge for copies thereof.

Registration statements, reports, professional fund-raising counsel contracts or professional solicitor contracts and all other documents and information required to be filed under this article shall become public records in the office of the commissioner of revenue, and shall be open to the general public for inspection at such time and under such conditions as the commissioner of revenue may prescribe. A charge, not exceeding $1.00 per page, may be made for any copy of such documents and information as may be furnished any person by the commissioner of revenue. (Code 1985, § 24-28).

State law reference – Similar provisions, Code of Virginia, § 57-56.

5.25.190 False or misleading information in statements or reports required by article.

It shall be unlawful for any person to willfully and knowingly give any false, incorrect or misleading information to the commissioner of revenue in filing statements or reports required by this article, whether such report or statement is verified or not. (Code 1985, § 24-29).

State law reference – Similar provisions, Code of Virginia, § 57-59(a).

5.25.200 Receipts required for certain contributions.

No charitable or civic organization shall accept any contribution exceeding $5.00 in cash or tangible property, without providing, on request of the donor, a written receipt acknowledging such contribution and personally signed by the person accepting such contribution. (Code 1985, § 24-30).

State law reference – Similar provisions, Code of Virginia, § 57-57(g).

5.25.210 Soliciting without authority from organization.

(1) No person shall make any representation that he is soliciting contributions for or on behalf of a charitable or civic organization or shall use or display any emblem, device or printed matter belonging to or associated with a charitable or civic organization, for the purpose of soliciting or inducing contributions from the public, without first being authorized to do so by such organization.

(2) No professional solicitor shall solicit in the name of or on behalf of any charitable or civic organization, unless such solicitor has written authorization of two officers of such organization, a copy of which shall be filed with the commissioner of revenue. Such written authorization shall bear the signature of the solicitor and shall expressly state on its face the period for which it is valid, which shall not exceed one year from the date issued. Such authorization shall be carried by such solicitor when making solicitations and shall be exhibited, on request, to persons solicited, police officers or agents of the commissioner of revenue. (Code 1985, § 24-31).

State law reference – Similar provisions, Code of Virginia, § 57-57(e),(f).

5.25.220 Soliciting by certain persons prohibited.

No person, and no organization of which such person is an officer, professional fund-raising counsel or professional solicitor, shall solicit within the city, if:

(1) Such person has been convicted, in any jurisdiction, of embezzlement, larceny or other crime involving the obtaining of money or property by false pretenses or the misapplication of funds impressed with a trust, unless such person has received a pardon for such offense or the public is informed of such conviction in a manner approved in writing by the commissioner of revenue before any solicitation occurs; or

(2) Such person has ever been enjoined by any court or otherwise prohibited from soliciting in any jurisdiction, unless the commissioner of revenue shall first determine, in writing, that such person is entitled to solicit in such jurisdiction at the time of soliciting within the city, or that the reason for such injunction or prohibition does not involve moral turpitude. (Code 1985, § 24-32).

State law reference – Similar provisions, Code of Virginia, § 57-57(h).

5.25.230 Soliciting for benefit of nonresident who fails to supply information to commissioner.

No person shall solicit within the city for the benefit of any other person located without the city, if such other person refuses to supply any information which the commissioner of revenue deems necessary to assure himself that the provisions of this article are complied with. A solicitation shall be deemed to be on behalf of every person who receives, directly or indirectly, more than 10 percent of the gross amount collected. (Code 1985, § 24-33).

State law reference – Similar provisions, Code of Virginia, § 57-57(i).

5.25.240 Misleading solicitations generally.

(1) No charitable organization shall use or exploit the fact of registration under this article so as to lead the public to believe that such registration in any manner constitutes an endorsement or approval by the city. The use of the following statement shall not be deemed a prohibited exploitation: “Registered with the commissioner of revenue as required by law. Registration does not imply endorsement of a public solicitation for contributions.”

(2) No person shall, in connection with the solicitation of contributions or sale of tangible personal property or services, represent, or lead anyone, by any manner, means, practice or device whatsoever, to believe, that the person on whose behalf such solicitation or sale is being conducted is a bona fide charitable organization or that the proceeds of such solicitation or sale will be used for charitable purposes, if he has reason to believe such not to be the fact. (Code 1985, § 24-34).

State law reference – Similar provisions, Code of Virginia, § 57-57(a),(b).

5.25.250 Misrepresentations as to sponsors, endorsers, etc.

(1) No person shall, in connection with the solicitation of contributions or the sale of tangible personal property or services for charitable purposes, represent, or lead anyone, by any manner, means, practice or device whatsoever, to believe, that any other person sponsors or endorses such solicitation of contributions or sale of tangible personal property or services for charitable purposes or approves of such charitable purposes or a charitable organization connected therewith, when such other person has not given written consent to the use of his name for these purposes.

(2) Any member of the board of directors or trustees of a charitable organization, or any other person who has agreed to either serve or to participate in any voluntary capacity in the campaign, shall be deemed thereby to have given his consent to the use of his name in such campaign.

(3) Nothing contained in this section shall prevent the publication of names of contributors, without their written consent, in an annual or other periodic report issued by a charitable organization for the purpose of reporting on its operations and affairs to its membership or for the purpose of reporting contributions to contributors. (Code 1985, § 24-35).

State law reference – Similar provisions, Code of Virginia, § 57-57(c).

5.25.260 Misrepresentations as to income tax deductions.

(1) No person shall denominate any membership fee or purchase price of goods or services sold as a contribution or as a donation or in any other manner represent or imply that the member or the purchaser of such goods or services will be entitled to an income tax deduction for his cost or any portion thereof, unless:

(a) There shall have been first obtained a signed opinion of counsel or an Internal Revenue Service ruling or determination letter holding such cost to be deductible; or

(b) The member or purchaser is informed, in writing, that such cost may not be deductible.

(2) No charitable organization, other than an organization exempt under SCC 5.25.050(1)(c), shall represent or imply that a contributor thereto will be entitled to an income tax deduction for his contribution, unless there shall have been first obtained a signed opinion of counsel or an Internal Revenue Service ruling or determination letter holding gifts to such organization to be so deductible. (Code 1985, § 24-36).

State law reference – Similar provisions, Code of Virginia, § 57-57(d).