Charities and For-Profit Telemarketers Calling on Their Behalf
Although tax exempt non-profit charities that conduct their own telemarketing are not covered by the TSR, the USA PATRIOT Act, passed in 2001, brought charitable solicitations by for-profit telemarketers within the scope of the TSR. As a result, most of the TSR’s provisions now are applicable to “telefunders” — telemarketers who solicit charitable contributions on behalf of non-profit charities.
Telefunders must:
- make certain prompt disclosures in every outbound call.
- get express verifiable authorization if accepting payment by methods other than credit or debit card.
- maintain records for 24 months.
- comply with the entity-specific Do Not Call requirements, but are exempt from the National Do Not Call Registry provision.
- include a prompt keypress or voice-activated opt-out mechanism in any prerecorded message call on behalf of a non-profit organization to a member of, or previous donor to, the non-profit.
Telefunders may not:
- make a false or misleading statement to induce a charitable contribution.
- make any of several specific prohibited misrepresentations.
- engage in credit card laundering.
- place “cold” calls that deliver prerecorded messages.
- engage in acts defined as abusive under the TSR, such as calling before 8 a.m. or after 9 p.m., disclosing or receiving consumers’ unencrypted account information, and denying or interfering with a consumer’s right to be placed on a Do Not Call list.
More information can be found here.