What type of activities must be disclosed when a nonprofit organization solicits funds?

Nonprofit organizations in South Dakota must disclose certain activities when soliciting funds from the public. These disclosures must be made in writing, or orally if the donation is made in person. Depending upon the type of solicitation, different types of activities must be disclosed. When soliciting donations, the nonprofit must disclose how much of the funds received will go to support their program activities, administrative expenses, and fundraising costs. Additionally, this information must also include any compensation and expenses that will be paid to officers, directors, or other people connected to the nonprofit. This disclosure must also include any provisions for savings or investment of the funds and any conditions imposed on the use of the funds. When soliciting investments, the nonprofit must disclose the risks associated with the investment, the expected return on the investment, and possible conflicts of interest related to the investment. This disclosure must be easily understood and should include any economic benefits provided to the nonprofit or associates of the nonprofit as a result of the investment. In addition to the above, the nonprofit must disclose their charitable purpose in writing or verbally to the potential donor or investor. The nonprofit must also make sure that solicitations are not misleading, deceptive, or false and must be compliant with all applicable state and federal laws and regulations.

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What type of activities must be disclosed when a nonprofit organization solicits funds?

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