Cutting Red Tape for Small Businesses that raise Charitable Funds
In the fall of 2024, Hurricane Helene ravaged the Carolinas, devastating many communities and destroying critical infrastructure. The road to recovery continues in some SC/NC communities. In the months after the storm, it was impossible to go to a local business and not be provided a way to support the recovery efforts led by hundreds, if not thousands, of unique charities, churches and neighborhood groups.
Lowcountry Local First, in partnership with TogetherSC and the Secretary of State's Office, began advocating in early 2025 for lowered regulations for those small businesses looking to do their part to drive recovery efforts.
The South Carolina Solicitation of Charitable Funds Act (Title 33, Chapter 56) governs nonprofit fundraising and filing requirements with the Secretary of State. The law also regulates commercial co-venturers — for-profit businesses that raise funds for nonprofits through sales-based promotions (e.g., “percent of sales” events).
Current requirements:
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All co-venturer campaigns must register with the Secretary of State.
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Required filings include pre-registration, contract disclosure, and gross/net revenue
reporting.
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No minimum dollar threshold applies.
For example: A small ice cream store would like to donate $1 of every cone sold to the local food bank from 4-7pm on one Friday night in July. The store ends up selling enough ice cream cones to donate $589 to the local food bank.
The ice cream store, under current law, is required to pre-file various information with the Secretary of State prior to the “solicitation event” (Friday, 4-7pm) occurring and then file financial information (gross revenue / net provided to nonprofit) after the event concludes. They're also required to pay a fee to the state to register.
Practical effect: Even small, short-term fundraising events (e.g., a one-day restaurant promotion) trigger full compliance.
- Establishes a $10,000 floor before co-venturer registration is required.
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Registration required before a campaign if more than $10,000 is anticipated.
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If $10,000 is exceeded unexpectedly, registration required within 30days.
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No changes to required filings once registration is triggered.
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Requires disclosure of the nonprofit’s name at the time of solicitation for any level
of engagement.
Result: Substantially reduces unnecessary regulation of small, low-dollar fundraising campaigns.
By having more nonprofits technically eligible for registration requirements, we also may see a more accurate picture of nonprofits in the state regardless of their revenue mix (earned/contributed).