January 23, 2014 –
What effect will Florida’s proposed charity reform have on your business?

This update addresses changes on the horizon that may impact all Florida charitable organizations and the methods by which they raise contributions.

Last week, Agriculture Commissioner Adam Putnam announced a “complete rewrite of Florida’s charity laws,” with an objective to increase the state’s oversight and transparency. This effort appears to be in response to investigative reports like those in 2013 that caused Florida’s then-lieutenant governor to resign.

In support of Commissioner Putnam’s initiative, Senator Jeff Brandes (R-St. Petersburg) has filed Senate Bill 638, a sweeping proposal that, if passed, would continue to require charities to register fundraising activities with the state, but also require them to provide additional information, such as the names of those in leadership positions, contact information and financial reports. In addition, charities that emerge as a direct result of a natural disaster or tragedy and raise more than $100,000 will have to submit quarterly financial statements that outline how money is spent.

Additional changes would include:

• The exclusion of charitable organizations or sponsors disqualified by the Department of Agriculture and Consumer Services (“DACS”) from receiving certain tax exemptions;

• Requiring the Department of Revenue to revoke or deny a sales tax exemption to charitable organizations or sponsors disqualified by DACS;

• New prohibitions on direct and indirect conflicts of interest between officers, board members and charitable organizations where they serve; and

• The required filing of an annual financial statement, which in certain circumstances means disclosure of names of employees and consultants paid more than $100,000 per year.

The Gunster Governmental Affairs team will be closely following the progress of SB 638 and others like it as the bills travel through the Florida Legislature.

In the meantime, if you believe these potential changes may affect you or your business, please contact Gunster Government Affairs team members Derek Bruce and Don Madden for more information.

	Yes!  Please sign me up to receive email alerts from other Gunster practice areas.
Image courtesy of FreeDigitalPhotos.net