What type of activities must be disclosed when a nonprofit organization solicits funds?
In California, when a nonprofit organization solicits funds, it must disclose certain types of activities, such as how the funds collected will be used, how the organization will utilize the donations, and the percentage of the donation amount that will go toward supporting the organization’s programs or services. Nonprofits must also disclose their tax status if they are exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code, or if they are tax-exempt in California. Additionally, if the nonprofit organization is registered with the California Attorney General’s Registry of Charitable Trusts, it should disclose its registration number and the name of the responsible party. Nonprofits in California must also disclose if any paid solicitor is involved in the fundraising campaign, as well as the cost of the fundraiser and the net proceeds from the campaign. Lastly, the nonprofit organization must be transparent in their fundraising activities by providing details about how the money was spent, how much money was used to pay solicitors or consultants, and how much money was used to cover administrative costs. This information should be made available to potential donors so that they can make informed decisions about how much to donate to a specific nonprofit organization.
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