Current through Register Vol. XLI, No. 36, September 6, 2024
Section 153-7-2 - Examination of Applications2.1. The Secretary of State shall examine each application to insure conformity with the Solicitation of Charitable Funds Act. Such examination may include the following areas:2.1.1. Governing structure as expressed in the minutes of board meetings showing that the: 2.1.1.a. Board decides major expenditures for programs.2.1.1.b. Board decides whether new programs/directions will become part of a major purpose of charity.2.1.1.c. Board gets a full report on financial condition of charity at each meeting.2.1.1.d. Board meets no less than three (3) times a year.2.1.1.e. Board receives and approves reports on budget and financial reports.2.1.1.f. Majority of board members are not employees of the charity.2.1.2. Purpose of the charity as reflected in the financial and annual reports should demonstrate that die majority of the money collected is applied to the purposes expressed in the solicitation materials.2.1.3. Information may be requested to determine the selection method used to contract for services by the board to insure board members or their families do not receive an unfair advantage from their position on the board. This may include examination of those companies contracted; with regard to ownership and relationship with board members.2.1.4. Organizations are exempt under W. Va. Code § 29-19-6(b) only if they do not collect more than $10,000 or do not contract with a professional fund-raiser. If they collect more than $10,000 in a year or if they hire a professional fund raiser, they must register with the Secretary of State.2.1.5. It is the intent of the Secretary of State to administer the Solicitation of Charitable Funds Act as a license to solicit subject to the primary purpose of protecting the public from deceptive and dishonest practices.