8 Colo. Code Regs. § 1505-9-9

Current through Register Vol. 47, No. 17, September 10, 2024

Rule 8 CCR 1505-9-9 - Application of Registration Requirements to Internet Solicitation

9.1 As used in this Rule 9:

9.1.1 "Interactive website" means a website that permits a contributor to make a contribution or purchase a product in connection with a charitable solicitation electronically, such as by submitting credit card information or by authorizing an electronic funds transfer. Interactive websites include sites through which a donor may complete a financial transaction online even if completion requires the use of linked or redirected sites. Such a website is interactive regardless of whether donors actually use it.

9.1.2 "Receives contributions from Colorado on a repeated and ongoing or substantial basis" means receiving contributions within the entity's fiscal year that are sufficient to establish the regular or significant (as opposed to rare, isolated, or insubstantial) nature of those contributions.

(a) An entity receives contributions on a repeated and ongoing basis if it receives at least 50 online contributions during a fiscal year.

(b) An entity receives substantial contributions if it receives the lesser of $25,000 or 1% of its total contributions in online contributions during a fiscal year.

9.1.3 "Specifically targets persons physically located in Colorado for solicitation" means:

(a) To include on a website a reference to soliciting contributions from Colorado; or

(b) To otherwise appeal to residents of Colorado, such as by advertising or sending messages to persons located in Colorado (electronically or otherwise) when the entity knows or reasonably should know the recipient is physically located in Colorado. Charities operating on a purely local basis, or within a limited geographic area, do not target states outside their operating area, if their web site makes clear in context that their fundraising focus is limited to that area even if they receive contributions from outside that area on less than a repeated and ongoing basis or on a substantial basis.

9.2 An entity that solicits Colorado residents via e-mail will be treated the same as one that solicits Colorado residents via telephone or direct mail.

9.3 An entity with a principal place of business in Colorado that uses the internet to conduct charitable solicitations in Colorado must register with the Secretary of State, unless it is exempt from the registration requirements per section 6-16-104(6), C.R.S., regardless of whether the solicitation methods are passive or interactive and regardless of whether the internet solicitation methods are maintained by itself or another entity with which it contracts, or whether it conducts solicitations in any other manner.

9.4 An entity with a principal place of business outside of Colorado must register with the Secretary of State, unless it is exempt per section 6-16-104(6), C.R.S., if:

9.4.1 Its non-internet activities are sufficient to require registration in Colorado, or

9.4.2 The entity solicits contributions through an interactive website and the entity either:

(a) Specifically targets persons physically located in Colorado for solicitation, or

(b) Receives contributions from Colorado on a repeated and ongoing basis or a substantial basis through its website; or

9.4.3 The entity solicits contributions through a non-interactive site, but either specifically invites further offline activity to complete a contribution, or establishes other contacts with Colorado, such as sending e-mail messages or other communications that promote the website; and

(a) Specifically targets persons physically located in Colorado for solicitation, or

(b) Receives contributions from Colorado on a repeated and ongoing basis or a substantial basis through its website.

9.5 Solicitations for the sale of a product or service that include a representation that some portion of the price is devoted to a charitable organization or charitable purpose (also called "cause marketing" or "commercial coventuring," as defined in section 6-16-103(3), C.R.S., as a "charitable sales promotion") are governed by the same standards outlined in this Rule 9 and in accordance with section 6-16-104(1), C.R.S.

9.6 Nothing in this Rule 9 is intended to limit or expand upon the exception to the definition of a "paid solicitor" listed in section 6-16-103(7)(f), C.R.S., which states that a person whose only responsibility in connection with a charitable contribution is to provide a merchant account to process credit card payments using the internet is not considered a paid solicitor.

8 CCR 1505-9-9

41 CR 20, October 25, 2018, effective 11/14/2018