State Senate majority leader offers new rules on telephone soliciting

? A legislative leader is proposing new restrictions on companies that raise money for charities in hopes of giving Kansans more protection from unscrupulous telemarketers.

Senate Majority Leader Derek Schmidt said his bill was inspired by a recent experience with a telemarketer. The Independence Republican plans to introduce his measure after the 2009 Legislature convenes Jan. 12.

The bill would require professional solicitors to tell potential donors, when contacting them, what percentage of the money being raised actually will go to the charity. Schmidt called it a “truth in giving” proposal.

“This is a problem that becomes more pronounced each year around the holidays, when the number of charity solicitations rises and when people are in an especially giving mood,” he said in a written statement. “It’s about openness and honesty.”

State law already requires many charities raising money in Kansas to register annually with the secretary of state’s office. Professional fundraising firms also are required to register each year.

The charities must file annual reports or tax returns, disclosing how much they spend on administrative costs and their fundraising efforts. In soliciting contributions, they are supposed to provide a registration number — and the number for the fundraising company — to the potential donor.

But Schmidt’s bill would require fundraisers to disclose that they are professional solicitors and tell the potential donor the company name and the guaranteed minimum percentage of dollars the charity will receive.

Under his proposal, companies violating the restrictions could be fined up to $10,000 per violation, and up to $20,000 if the offense targets the elderly or disabled.

Schmidt said he decided to push the legislation after receiving a recent telemarketing call for a charity. He said he questioned the caller, discovering that it was a company based in Missouri.