TOUGHER CHARITY FRAUD BILL PASSED

Secretary of State Jim Miles (R) led a bipartisan news conference today with Senator Phil Leventis (D-Sumter), Senator Joe Wilson (R-Lexington), and members of the House and Senate to announce the passage of the Solicitation of Charitable Funds Act.  According to Secretary Miles, the new Charitable Funds Act “strengthens our charitable solicitation laws and enables our office to enforce tougher penalties on those who break these laws.”

The new law increases sanctions and provides for a felony offense for second and subsequent offenses punishable by up to five years and/or $10,000. The bill also bars anyone convicted of violating these laws from registering as a professional solicitor for at least five years.

Miles said the new law also will give his office the authority to audit charities, solicitors, and fundraisers, in addition to their investigative authority, “which will assist us in tracking and stopping embezzlement and the illegal disbursement of funds.”

In addition, the Secretary of State can now assess a fine up to $2000 to an individual or organization for each separate violation. Registration disclosures for professional solicitors and charities have been heightened, including the disclosure of prior criminal convictions. In addition, commercial co-ventures are now defined and subjected to disclosure.

“Why is this law so important? It’s important because South Carolinians are hard working and generous---and they should be protected from criminals who hide behind a charitable cause to part our citizens from their hard-earned money. Secondly, it’s important because it allows us to do more to put these crooks out of business, so that the good charities in our state can raise the money they need for worthy causes,” Miles added.