Chapter 17 - § 17.1 • INTRODUCTION

• Jurisdiction: Colorado

§ 17.1 • INTRODUCTION

The world of philanthropy is based on trust. In general, people give to charities trusting that their gift will be used for good. Donors expect the highest ethical standards from the voluntary and charitable groups to which they give. Charitable donors expect, and should receive, candor, honesty, and accountability from those organizations to which they give. Howard Leoner Oleck & Martha E. Stewart, Nonprofit Corporations, Organizations, & Associations, 6th ed. (Prentice Hall Trade, May 1994). However, reacting to a number of factors, including federal attention on nonprofit regulation, continuing pressure on state budgets, and high-profile scandals captured by media across the country, state policy-makers have recently introduced a number of bills regulating the activities of nonprofits.

When a nonprofit organization decides to raise funds by soliciting contributions from the public or by hiring a professional fundraiser to solicit contributions, the organization and the fundraiser must comply with state charitable...