New Requirements for Commercial Co-Venturers in South Carolina

Governor Nikki Haley signed into law House Bill 3367, which amends the South Carolina Solicitation of Charitable Funds Act, and took effect upon the governor's signature. Some of the new registration requirements must be completed by October 4, 2014.

Previously, commercial co-venturers were required to file with the Secretary of State a Notice of Solicitation form and contracts they have with all charitable organizations. These should be filed at least ten days prior to any solicitation activity. House Bill 3367 did not change these requirements.

However, commercial co-venturers must now register with the South Carolina Secretary of State prior to a solicitation campaign. Registration includes filing a completed application and paying an annual fee of fifty dollars.

Commercial entities that are currently running any solicitation campaign in South Carolina must submit an application to register as a commercial co-venturer by October 4, 2014.

In addition, commercial co-venturers are required to file a joint financial report with the Secretary of State within 90 days of the conclusion of a solicitation campaign, or within 90 days of the anniversary of a campaign lasting more than one year.

The Secretary of State has also indicated that it may begin fining entities up to $2,000 for late registrations. This appears to be a change from previous policy regarding enforcement of late registrations.

This client alert is a publication of Loeb & Loeb LLP and is intended to provide information on recent legal developments. This client alert does not create or continue an attorney client relationship nor should it be construed as legal advice or an opinion on specific situations.