Arkansas Code Title 4. Business and Commercial Law § 4-28-401. Definitions

As used in this subchapter, unless the context otherwise requires:

(1) “Charitable organization” means any person:

(A) Who is or holds himself or herself out to be established for:

(i) Any benevolent, educational, philanthropic, humane, scientific, patriotic, social welfare or advocacy, public health, environmental conservation, civic, or other eleemosynary purpose;  or

(ii) The benefit of law enforcement personnel, fire fighters, or other persons who protect the public safety;  or

(B) Who in any manner employs a charitable appeal as the basis of any solicitation or an appeal which has a tendency to suggest there is a charitable purpose to any solicitation;

(2) “Charitable purpose” means any benevolent, educational, philanthropic, humane, scientific, patriotic, social welfare or advocacy, public health, environmental conservation, civic, or eleemosynary objective;

(3) “Charitable sales promotion” means an advertising or sales campaign conducted by a commercial coventurer which represents that the purchase or use of goods or services offered by the commercial coventurer will benefit a charitable organization or purpose;

(4) “Commercial coventurer” means any person who for profit or other consideration is regularly and primarily engaged in trade or commerce other than in connection with the raising of funds or any other thing of value for a charitable organization and who advertises that the purchase or use of his or her goods, services, entertainment, or any other thing of value normally sold without a charitable appeal will benefit a charitable organization during a charitable sales promotion;

(5) “Contribution” means the grant, promise, or pledge of money, credit, property, financial assistance, or other thing of value in response to a solicitation;

(6)(A) “Fund-raising counsel” means any person who for a flat fixed fee or fixed hourly rate under a written agreement plans, conducts, manages, carries on, advises, or acts as a consultant, whether directly or indirectly, in connection with soliciting contributions for or on behalf of any charitable organization, but who actually solicits no contributions as a part of the services.

(B) Fund-raising counsel do not receive or control funds or assets solicited for charitable purposes, nor do they procure or employ any compensated person to do so.

(C) No lawyer, investment counselor, or banker who advises a person to make a contribution shall be deemed, as a result of that advice, to be a fund-raising counsel.

(D) A bona fide salaried officer or employee of a registered or exempt charitable organization shall not be deemed to be a fund-raising counsel;

(7) “Gross revenue” means income of any kind from all sources, including all amounts received as the result of any solicitation by a paid solicitor;

(8)(A) “Membership” means those persons to whom, for payment of fees, dues, assessments, etc., an organization provides services and confers a bona fide right, privilege, professional standing, honor, or other direct benefit in addition to the right to vote, elect officers, or hold offices.

(B) The term “membership” shall not include those persons who are granted a membership upon making a contribution as the result of solicitation;

(9)(A) “Paid solicitor” means a person who for compensation, other than any nonmonetary gift of nominal value awarded to a volunteer solicitor as an incentive or token of appreciation, performs for a charitable organization any service in connection with which contributions are solicited by the person or by any other person he or she employs, procures, or engages to solicit for compensation.

(B) A lawyer, investment counselor, or banker who advises a person to make a contribution is not a paid solicitor as a result of that advice.

(C) A bona fide nontemporary salaried officer or employee of a charitable organization is not a paid solicitor;

(10) “Parent organization” means that part of a charitable organization which supervises and exercises control over the solicitation and expenditure activities of one (1) or more chapters, branches, or affiliates;

(11) “Person” means:

(A) An individual;

(B) A corporation;

(C) A limited liability corporation;

(D) An association;

(E) A partnership;

(F) A foundation;  or

(G) Any other entity, however styled;

(12) “Professional telemarketer” means any person who is employed or retained for compensation by a paid solicitor to solicit contributions in this state for charitable purposes;  and

(13)(A) “Solicitation” means each request, either directly or indirectly, for a contribution on the plea or representation that the contribution will be used for a charitable purpose.

(B) “Solicitation” shall be deemed to occur when the request is made, at the place the request is received, whether or not the person making the request actually receives any contribution and includes, without limitation, the following methods of requesting a contribution:

(i) Any oral or written request;

(ii) Any announcement concerning an appeal or campaign to which the public is requested to make a contribution for any charitable purpose connected therewith:

(a) To the press;

(b) Over radio or television;  or

(c) By telephone or telegraph;

(iii) The distribution, circulation, posting, or publishing of any handbill, written advertisement, or other publication which directly or by implication seeks to obtain public support;  or

(iv) The sale of, offer of, or attempt to sell any advertisement, advertising space, subscription, ticket, or any service or tangible item:

(a) In connection with which any appeal is made for any charitable purpose or where the name of any charitable organization is used or referred to in the appeal as an inducement or reason for making the sale;  or

(b) When or where, in connection with any sale, any statement is made that the whole or any part of the proceeds from the sale will be donated to any charitable purpose.


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