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Constitutional Law Keyed to Choper
Riley v. National Federation of the Blind
Citation:
487 U.S. 781 (1988)Facts
In 1985, North Carolina amended its Charitable Solicitations Act in response to a study showing that the state’s largest professional fundraisers had retained over 50% of the gross revenues collected in charitable solicitation drives. The amended Act established a three-tiered definition of “reasonable” fundraising fees: fees up to 20% were deemed reasonable; fees between 20-35% were deemed unreasonable unless the solicitation involved dissemination of information or advocacy; and fees exceeding 35% were presumed unreasonable unless the fundraiser could prove the fee was necessary due to information dissemination or the charity’s ability to raise money would be significantly diminished otherwise. Additionally, the Act required professional fundraisers to disclose to potential donors the percentage of charitable contributions actually turned over to charities in the previous 12 months. Finally, the Act required professional fundraisers to obtain an approved license before soliciting, while volunteer fundraisers could solicit immediately upon submitting a license application. A coalition of professional fundraisers, charitable organizations, and potential donors challenged these provisions as unconstitutional restrictions on free speech.
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