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EMERGING ISSUE: CHANGING LANDSCAPE OF CHARITABLE SOLICITATION

EMERGING ISSUE: CHANGING LANDSCAPE OF CHARITABLE SOLICITATION. February 8, 2013 Bob Carlson Assistant Attorney General Missouri Attorney General’s Office. 1. New solicitation forms are already in our cases. Online donations are growing rapidly 10.9% increase in 2012

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EMERGING ISSUE: CHANGING LANDSCAPE OF CHARITABLE SOLICITATION

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  1. EMERGING ISSUE: CHANGING LANDSCAPE OF CHARITABLESOLICITATION February 8, 2013 Bob Carlson Assistant Attorney General Missouri Attorney General’s Office

  2. 1. New solicitation forms are already in our cases Online donations are growing rapidly 10.9% increase in 2012 But: less than 10% of dollars charities collected 106,000 charities received $77 average online donation High number of individual donors Source: Chronicle of Philanthropy, December 2, 2012 Fraud cases Many individual donors with donations $10 - $250 Scammers will create web presence and solicit online Know that if you’re not online, you don’t exist

  3. 2. Solicitations are changing • Donation boxes to direct online donations: • Donation boxes • Boiler rooms • Websites • Mobile Giving • P2P sites • Direct solicitations on Twitter, Facebook, etc.

  4. 2. Solicitations are changingConcerns & Challenges • No verification of 501(c)(3) status • May not even be a nonprofit • May not even be anyone with any experience in field. • Solicitation may not even be considered charitable • No way to track donations • State registration or nonprofit record-keeping under IRS rules • Lack of a “responsible adult” • If go through First Giving, Mobile Giving, etc. there is always one or more experts making sure everything is done right. • Like donation boxes and verbal solicitations, web information can disappear

  5. 3. Many New Players Online donation systems create many new entities who ask for money and handle donations

  6. Source: http://sumac.com/demystifying-mobile-giving-nonprofit

  7. Nonprofit payment processing explained… Source: Debra Askanase PowerPoint Presentation Columbia University March 24, 2011

  8. 3. New Players • Peer to Peer fundraising • Unclear just who is doing the asking? • Unclassified and untracked • Unknown who: handles funds, needs to register, ultimately receives the donation. • Misunderstood concepts • What is a BBB or Guidestar seal? • Why does it go through Network For Good? • Significance of 501(c)(3) recognition

  9. Contact Information Bob Carlson Assistant Attorney General 815 Olive St. St. Louis, MO 63101 314-340-6816 314-340-7957 (fax) bob.carlson@ago.mo.gov

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