Tenn. Comp. R. & Regs. 1360-03-01-.01 - DEFINITIONS

(1) Terms defined in the Charitable Solicitations Act, T.C.A. § 48-101-501et seq. shall have the same meaning for the purpose of these rules and definitions in these rules shall apply to T.C.A § 48-101-501et seq.

(2) "The Act" shall mean the Charitable Solicitations Act.

(3) "Branch" or "Affiliate" shall mean a subordinate organization, which is a chapter, local, post, or unit of a central organization. A central organization may be a subordinate itself, such as a state organization that has subordinate units and is itself affiliated with a national organization. A subordinate organization may or may not be incorporated, but it must have an organizing document. A subordinate that is organized and operated in a foreign country may not be included in a group exemption letter. A subordinate organization classified by the Internal Revenue Service as 501(c)(3) may not be included in a group exemption letter if it is a private foundations described as 509(a).

(4) "Fund Raising Costs" shall mean the total expenses incurred in soliciting contributions including, but not limited to, costs incurred: publicizing and conducting fundraising campaigns; soliciting bequests and grants from foundations or other organizations, or government grants; participating in federated fundraising campaigns; preparing and distributing fundraising manuals, instructions, and other materials; and conducting special events that generate contributions.

(5) "Gross contributions" shall mean all contributions received by an organization including, but not limited to: all donated items; all funds or the entire value of non cash items raised by an outside fundraiser in a charity's name and not just the amount actually received by the charity; amounts received from individuals, trusts, corporations, estates, and foundations, or raised by an outside professional fundraiser; and contributions and grants from public charities and other exempt organizations that are neither fundraising organizations nor affiliates of the filing organization.

(6) "Membership" shall mean a status applied upon condition of the payment of fees, dues, assessments, etc., in an organization which 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. The term "membership" shall not include those persons who are granted a membership upon making a contribution.

(7) "Parent" shall mean a central organization, which is an organization that has one or more subordinates under its general supervision or control.

(8) "The public" shall mean individuals, trusts, corporations, estates, foundations, public charities, other exempt organizations that are neither fundraising organizations nor affiliates of the filing organization, and outside professional fundraisers.

(9) "Interactive Web site" is a Web site that permits a contributor to make a contribution, or purchase a product in connection with a charitable solicitation, by electronically completing the transaction, such as by submitting credit card information or authorizing an electronic funds transfer. Interactive sites include sites through which a donor may complete a transaction online through any online mechanism processing a financial transaction even if completion requires the use of linked or redirected sites.

(10) "Specifically target persons physically located in the state for solicitation" means to either (i) include on its Web site an express or implied reference to soliciting contributions from that state; or (ii) to otherwise affirmatively appeal to residents of the state, such as by advertising or sending messages to persons located in the state (electronically or otherwise) when the entity knows or reasonably should know the recipient is physically located in the state. 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.

(11) "Receive contributions from the state on a repeated and ongoing basis or a substantial basis" means receiving contributions within the entity's fiscal year, or relevant portion of a fiscal year, that are of sufficient volume to establish the regular or significant (as opposed to rare, isolated, or insubstantial) nature of those contributions. An entity receives contributions on a repeated and ongoing basis if it receives at least one hundred online contributions at any time in a year. It receives substantial contributions if it receives $25,000 in online contributions in a year.

(12) In T. C. A. Section 48-101-513(j)(1), "paid solicitor" shall mean "professional solicitor" as defined in T.C.A. § 48-101-501(8).

Notes

Tenn. Comp. R. & Regs. 1360-03-01-.01

Original rule filed June 17, 1977; effective July 18, 1977. Public necessity rule filed August 22, 2007; expired February 3, 2008. Repeal and new rule filed November 6, 2007; effective March 28, 2008. Amendments filed June 30, 2008; effective October 28, 2008.

Authority: T.C.A. § 48-101-503(b).