All Pawtucket All The Time

Rep. Peter F. Kilmartin (D-Dist. 61, Pawtucket) today introduced a bill to make public the activities of professional fundraising organizations.

Under the legislation (2010-H 7255), any business that sells for profit an item that benefits a charity would be classified as a commercial co-venturer, meaning professional fundraisers must register with the Department of Business Regulation (DBR), file financial documents outlining the program and post a $10,000 bond.

“Presently, these fundraisers can come into this state and solicit donations from hard-working Rhode Islanders and there is oversight whatsoever,” said Representative Kilmartin. “Some of these groups keep upwards of 80 to 90 percent of the proceeds, leaving little for the charity. This bill would allow our citizens to access the information necessary for evaluating where they want to donate their hard-earned dollars.”

Kilmartin’s proposal would require all professional fundraisers who solicit donations from Rhode Islanders to file an annual financial report with DBR stating- for each contract or agreement with a charity:

- the name of the charitable organization

- the gross receipts collected on the contract

- the amounts paid to the organization that will be used exclusively for charitable purposes

- the amounts paid to the professional fundraiser, fundraising counsel, commercial co-venturer or professional solicitor

- all additional expenses otherwise stated.

The bill has been sent to the House Finance Committee for consideration.