This guide provides information for Mainers when being solicited for charitable contributions.
Donating to Charity downloadables
File a Complaint about a Charity
The Maine Attorney General’s office has jurisdiction to investigate complaints that involve
- misappropriation of charitable funds;
- fraudulent or misleading solicitation; or
- breaches of trust.
The AGO generally does not become involved in governance disputes within nonprofit organizations, unless the board of directors is unable to function or other extenuating circumstances.
If you would like to file a complaint about a charity involving misappropriation of funds, fraudulent or misleading solicitation, or breaches of trust, please use our online file a complaint about a charity service.
Donating to Charity
- Before You Donate to a Charity
Unfortunately, some solicitations are deceptive or scams. Consumers should consider the following practical advice:
- Do not give cash. Always make contributions by check (and make out the check to the charity, not to the individual collecting the donation). Never give out a credit card number over the phone.
- Keep records of all your donations (receipts, canceled checks, and bank statements) so you can document your charitable giving at tax time.
- Before making a donation, check out the charitable organization with the Department of Professional and Financial Regulation (207-624-8624) or the Better Business Bureau, 1-508-652-4800. You can also contact CharityWatch, a national charity watchdog group. You could also ask for a copy of the charity’s latest annual report. Charity Navigator lays out how a charity spends its money, how stable it is financially, and how it compares with similar groups. GuideStar is another resource to research charities.
- Note carefully whether the solicitor makes the disclosures required by the Maine Charitable Solicitations Act described in the section above.
- Do not give in to pressure to give money on the spot or allow a “runner” to pick up a contribution. The charity that needs your money today will welcome it just as much tomorrow.
- If you are asked to buy candy, magazines, cards or tickets to a dinner or show to benefit a charity, be sure to ask what the charity’s share will be.
- Simply because a charitable organization is “tax exempt” does not mean that your contributions to it are tax deductible. The Internal Revenue Service defines more than 20 different categories of tax-exempt organizations, but contributions to only a few of these categories are tax deductible. Principal among the “tax deductible” group is the 501(c)(3) category, broadly termed “charitable” organizations.
- Always request literature from phone solicitors. If they want your pledge first, hang up or ask for a number so you can call them back.
- The Maine Charitable Solicitations Act
The Maine Charitable Solicitations Act[i] requires the registration and financial reporting of charitable organizations that solicit or accept contributions from the public and the registration and bonding of professional fund-raisers. Unless it has received an exemption, a charitable organization that intends to conduct charitable fundraising in Maine must register with the Maine Department of Professional and Financial Regulation ‘s Office of Licensing and Registration. Religious organizations are exempted from this Act. To find out if a particular charity or fund-raiser is registered with the State, check the online licensing and permitting company search. More information about the requirements of the Charitable Solicitations Act is available on the Department of Professional and Financial Regulation’s website.
[i] 9 M.R.S. §§ 5001-5016.
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- Disclosures to Consumers When Soliciting Charitable Contributions
Under the Maine Charitable Solicitations Act, both charitable organizations and professional fundraisers must make specific disclosures to consumers when they solicit funds. Failure to make such disclosures is a violation of the Maine Unfair Trade Practices Act and potentially a Class D crime.
Mandatory Disclosures for Charitable Organizations
The Maine Charitable Solicitations Act requires charitable organizations which are soliciting on their own to disclose the name and address of the charitable organization to potential contributors at the time of the solicitation but prior to the request for contributions.[i]
Mandatory Disclosures by a Professional Charitable Fundraiser
Professional fundraisers, in addition to providing the name and address of the charitable organization, must also provide the following two pieces of information:
- The name and address of the professional fundraising counsel, professional solicitor, or commercial co-venturer; and
- The following statement: “(insert name) is a professional charitable fundraiser.” [ii]
Further, professional fundraisers cannot deceive contributors as to the relationship with the charity or the percentage of each donated dollar that they will keep. Be aware, it is not unusual for a professional fundraiser to keep for itself $.85 of each donated dollar and pass on to the charity only $.15. This is not illegal unless the fundraiser misrepresents this fact.
- Misuse of Charitable Donations
Charities are prohibited from soliciting charitable donations and then using the money for purposes other than what was promised would be done. The Maine Attorney General can enforce gifts to charity that are being misused. Contact us through our online charity complaint service.
- Police Solicitations
Maine law places limits on charitable solicitations by law enforcement. This is because solicitations by law enforcement can be viewed as “inherently coercive” and may result in undermining the integrity of law enforcement. In Maine, law enforcement agencies, organizations, and officers can solicit charitable contributions only if the money will not “tangibly benefit” law enforcement efforts.[1] This effectively means that most solicitations by law enforcement are prohibited. Any money raised by police must be for a charity that is unrelated to law enforcement. Of course, any permissible solicitations by law enforcement must also meet the requirements of the Maine Charitable Solicitations Act. Maine law does not prohibit solicitations that benefit law enforcement by non-law enforcement. Maine law also does not prohibit unsolicited donations to law enforcement.
The law on charitable solicitations by law enforcement is enforced by the Maine Attorney General. Violations should be reported to the Consumer Protection Division of the Attorney General’s Office, which can be reached by phone at (207) 626-8849, by mail to 6 State House Station, Augusta, ME 04333-0006, or by emailing us at AG.ConsumerProtectionDivision@maine.gov.
[1] 25 M.R.S. § 3702-C.