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Free speech cited for lack of statutes on soliciting

But Supreme Court has encouraged states to provide date to help donors make informed choices.

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Free speech cited for lack of statutes on soliciting
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The U.S. Supreme Court has repeatedly blocked states from regulating high fundraising costs for charities.

Free speech rights are at play because high cost could merely mean that the firm has to work harder to raise money for an unpopular cause.

Still, the Supreme Court has encouraged states to provide information that helps residents make good choices.

One of the cases the court has ruled on started in Illinois. In the early 1990s, the state sued a group of telemarketing firms that raised money on behalf of VietNow National Headquarters, in Rockford, Ill.

Donors were told that their generosity would buy food baskets for veterans and their families during Thanksgiving, as well as help disabled vets pay for rehab, bills and rent. The telemarketing firms got 85 percent of the money raised.

The state sued the companies for fraud, alleging donors were led to believe a significant amount of their money would go toward veterans programs.

The case eventually landed before the Supreme Court, which wrote in a 2003 opinion that high fees or the failure of a solicitor to volunteer their share of the pie doesn't establish fraud. The firms can cross the line by misrepresenting information about themselves or the charity.

The court has said, though, that "these limitations do not disarm states from assuring that their residents are positioned to make informed choices about their charitable giving."

Missouri and Illinois don't seem to lead the pack in that regard.

In Washington, the secretary of state's office, which oversees charities, publishes a fundraiser report each year before the holiday giving season. It lists information about each registered fundraiser in the state, including total amount of contributions and percentage of money retained by charities.

The service has been available online (sos.wa.gov/charities) since 1997, said Rebecca Sherrell, who manages the program.

"Donors love it," she said. "We are trying to conduct a lot of outreach so the donors know that the information is there."

To find similar information in Missouri and Illinois, donors need to request the information over the phone or file a public records request.

Chris Koster, Missouri's attorney general, said declining state revenues have sapped resources but vowed that an online database of the agreements between fundraising companies and charitable organizations will be available by the end of the year.

Illinois doesn't have plans to expand availability of its records soon.

Copyright 2012 stltoday.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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