A charitable organization shall register and receive a registration letter from the Secretary of State before the charitable organization: solicits charitable contributions in the State; has charitable contributions solicited on its behalf in the State; or solicits charitable contributions outside of the State, if the charitable organization is in the State. A separate registration statement and a registration letter is necessary before any of the following charitable organizations can solicit: a federated fund-raising organization consisting of independent charitable organizations, including a united fund and a community chest, that: have joined to solicit charitable contributions and distribute them among themselves; but keep their own operating authority and control; or an independent charitable organization, including one that is a member of a federated fund-raising organization, unless it is specifically exempted or it does not solicit charitable contributions other than as a member of a federated fund-raising organization. A parent organization shall submit a consolidated registration statement for the affiliates, branches, or chapters in the State that it coordinates, controls, or supervises. An affiliate, branch, or chapter of a charitable organization shall: report information needed for a consolidated registration statement to its parent organization; submit a separate registration statement; and receive a registration letter from the Secretary of State prior to soliciting. For purposes of this subsection, an independent member agency of a federated fund-raising organization is not an affiliate, branch, or chapter.

A registration statement shall be on the form that the Secretary of State provides. Except as provided in subsection (c) of this section, the registration statement shall contain or be accompanied by: the name and address of the charitable organization and of any affiliate, branch, or chapter in the State; the name and address of: each officer, including each principal salaried executive staff officer, and each other person with final responsibility for the custody and final distribution of the charitable contributions made to the charitable organization; or each person who has custody of the financial records of the charitable organization if the charitable organization does not have a local office in the State; a statement of: the purposes for which the charitable organization was organized; the purposes for which charitable contributions will be used; and whether the charitable organization intends to solicit directly or to have a professional solicitor or fund–raising counsel solicit charitable contributions on its behalf; a copy of the articles of incorporation or other governing instrument of the charitable organization; a copy of a letter from the Internal Revenue Service, or other evidence, showing the tax–exempt status of the charitable organization; a copy of federal Form 990 that the charitable organization submits to the Internal Revenue Service; or information that the charitable organization states on a form that the Secretary of State provides; an audit by an independent certified public accountant if the gross income from charitable contributions in the most recently completed fiscal year is at least $1,000,000; or a review by an independent certified public accountant if the gross income from charitable contributions in the most recently completed fiscal year is at least $400,000 but less than $1,000,000; an affidavit signed by the chairman, president, or other principal officer attesting to the truth of the registration statement and each supporting document; a certification that all taxes due from the applicant to the State or to Baltimore City or a county of the State for the preceding fiscal year have been paid, and all taxes the applicant was required to collect and pay over to the State or to Baltimore City or a county of the State for the preceding fiscal year have been collected and paid over; or a certification that the taxes due from the applicant to the State or to Baltimore City or a county are under dispute and the dispute has not been finally resolved; and any other information that the Secretary of State requires by regulation. The Secretary of State may accept other documentation in place of any item required under subsection (b) of this section, including, in place of the audit or review required by subsection (b)(7) of this section, supporting documents indicating, and an affidavit attesting, that: the charitable organization: primarily solicits in–kind contributions; receives donations of property, including household goods, furniture, appliances, and clothing, that are intended to be redistributed to individuals residing in the State without charge; does not employ a professional solicitor or fund–raising counsel; used Generally Accepted Accounting Principles to determine the value of property received as charitable contributions during the immediately preceding fiscal year; has cash receipts from charitable contributions not exceeding $400,000 and amounting to 20% or less of the charitable organization’s gross income during the immediately preceding fiscal year that are used for program services or management and general expenses of the charitable organization, as set forth under COMAR 01.02.04.04.A and C; is current and up to date in all registration and reporting requirements under this title; is in good standing with the State Department of Assessments and Taxation, if applicable; and has tax–exempt status under § 501(c)(3) of the Internal Revenue Code; the charitable contributions of property are: directly related to the purposes for which the charitable organization was organized; and will be used in conducting the charitable organization’s programs; and the governing body of the charitable organization: is composed of at least three independent and unrelated directors; and completed an onboarding and training program during the immediately preceding fiscal year, provided internally or externally, that covered: the charitable organization’s mission; the policies, procedures, and operations of the charitable organization; and the duties and responsibilities of directors and officers as fiduciaries of the charitable contributions that the charitable organization collects and spends. The Secretary of State may require an audit or review if the amount of gross income is less than $1,000,000.

The chairman, president, or other principal officer of a charitable organization is personally responsible for the timely submission of the registration statement.

If the Secretary of State finds that an applicant for registration has complied with this title and the regulations adopted under it, the Secretary of State shall approve the application. If the Secretary of State finds that an applicant for registration has not complied with this title and the regulations adopted under it applicable to registration, the Secretary of State: shall notify the applicant of the reasons the applicant is not in compliance; and for each month or part of a month that the applicant is not in compliance, may assess a fee of $25 30 days after a second notice is sent, by regular mail, to the applicant at the address on file with the Secretary of State. If the Secretary of State fails to notify the applicant of a noncompliant application within 10 business days as required by paragraph (1) of this subsection, the applicant shall be deemed registered. An applicant for registration who receives notice of a noncompliant application under subsection (b) of this section may request a hearing with the Secretary of State within 7 business days after receiving the notice. The Secretary of State shall: hold a hearing within 7 business days after a request for a hearing from an applicant; and make a final decision within 3 business days after the hearing.

Except for parent-teacher organizations and youth sports organizations soliciting charitable contributions for programs for minors, a person exempt under § 6-102(c)(1)(ii)1 or 4 of this title shall submit annually a fund-raising notice to the Secretary of State on the form that the Secretary requires. A person exempt under § 6-102(c)(1)(ii)2 of this title shall submit an IRS Form 990 to the Secretary of State if required to file one with the Internal Revenue Service.

Unless exempted from registration under § 6-413 of this subtitle, a person may not solicit the public as a charitable organization prior to registration. The Circuit Court of Anne Arundel County or other court of competent jurisdiction may restrain or enjoin a person from soliciting in violation of paragraph (1) of this subsection. Except as provided in paragraph (2) of this subsection, the Secretary of State has the burden of proof in any court proceeding: to restrain or enjoin a charitable organization from soliciting the public; or based on an appeal by a charitable organization of a final decision of the Secretary of State under § 6-404(c) of this subtitle. A charitable organization claiming to be exempt from the requirements of this title has the burden of production of evidence on that issue. The Circuit Court for Anne Arundel County or other court of competent jurisdiction may order a charitable organization to stop soliciting the public if the charitable organization: is required to be registered but has not applied to be registered; or has otherwise violated the Maryland Charitable Solicitations Act.

A charitable organization that collects less than $25,000 in charitable contributions from the public in a year need not pay an annual fee, except that, if the charitable organization uses a professional solicitor, it shall pay an annual fee of $50. Each charitable organization that submits a separate registration statement and collects at least $25,000 in charitable contributions from the public in a year shall pay an annual fee based on the charitable contributions collected. The annual fee shall be: $50, if charitable contributions from the public are at least $25,000 but less than $50,001; $75, if charitable contributions from the public are at least $50,001 but less than $75,001; $100, if charitable contributions from the public are at least $75,001 but less than $100,001; $200, if charitable contributions from the public are at least $100,001 but less than $500,001; and $300, if charitable contributions from the public are at least $500,001. A charitable organization failing to file an annual report either by the end of the 6–month period after the end of the charitable organization’s fiscal year or within any period of extension granted shall pay, in addition to the annual fee, $25 for each month or part thereof after the date on which the annual report was due to be filed or after the period of extension granted for such filing. The late fee shall be assessed 60 days after: the end of the 6th month after the end of the fiscal year; or the period of extension. Failure to remit an assessed late fee is a violation of this title. The Secretary of State may suspend or waive late fees in accordance with: regulations adopted under subsection (f) of this section; or a settlement agreement made under § 6–205(b) and (c) of this title. The following revenues shall be distributed to the Charitable Enforcement Fund under Subtitle 2A of this title, to be used only to support the actions of the Secretary of State and the Attorney General in carrying out the duties of the Secretary of State and the Attorney General under this title and Title 6.5 of this article: $100 of the annual fee paid by each charitable organization under subsection (b)(2)(v) of this section; and the late fees collected under subsection (c) of this section. A late fee assessed under this section may not be considered a delinquent account or debt requiring referral to the Central Collection Unit for collection purposes under § 3–302 of the State Finance and Procurement Article. The Secretary of State may adopt regulations regarding the suspension or waiver of late fees for charitable organizations that fail to file an annual report under subsection (c) of this section.

A charitable organization that solicits or intends to solicit charitable contributions after it submits a registration statement to the Secretary of State shall submit an annual report in accordance with this section. A charitable organization shall submit an annual report to the Secretary of State: within 6 months after the end of the charitable organization’s fiscal year; or by any later date that the Secretary of State sets. The annual report shall contain: any change to the registration statement and to a previous annual report; the financial information and any supporting audit or review that the Secretary of State requires; and an affidavit signed by the chairman, president, or other principal officer attesting to the truth of the annual report and all supporting documents.

The chairman, president, or other principal officer of a charitable organization is personally responsible for the timely submission of the annual report.

Within 30 days after receiving a request, a charitable organization shall mail a current financial statement at no charge to the person who requested it. The financial statement shall contain: the name, address, and telephone number of the charitable organization; the amount of total revenue, the amount of total revenue received from charitable contributions, and the amount and percentage of total revenue used by the charitable organization for its management and general expenses, fund-raising expenses, and program service expenses during the preceding fiscal year; or if the charitable organization is newly organized, the estimated percentage of charitable contributions being sought that will be used for its management and general expenses, fund-raising expenses, and program service expenses; and if the charitable organization is registered with the Secretary of State, a declaration that the charitable organization is registered, but that registration is not and does not imply endorsement of any charitable solicitation.

This section does not apply to: a charitable solicitation by an accredited school, college, or university to its students, former students, parents of students or former students, board members, or staff; or a formal grant application prepared for and submitted to a specific corporation or foundation. A charitable solicitation that is a specific written request to the public for a charitable contribution shall contain a disclosure statement. A written receipt for a charitable contribution shall contain a disclosure statement. The disclosure statement shall be displayed conspicuously on a charitable solicitation and on a receipt for a charitable contribution.

A charitable organization shall keep accurate financial records about its activities in the State in a form that will enable it to provide the information required under this title. On request, a charitable organization shall make its financial records available to the Secretary of State for inspection. A charitable organization shall keep its financial records for at least 3 years after the end of the period of registration to which they relate.

The Secretary of State may exempt from the requirement of a registration statement or annual report a charitable organization that: is organized under the laws of another state that has a statute substantially similar to this title; has been exempted from the submission of a registration statement by that other state; has its principal place of business outside this State; and gets its money principally from sources outside this State.

A charitable organization may honor a credit card that the board of directors or executive officer of the charitable organization accepts for payment of charitable contributions.

An individual who is a director, officer, partner, or trustee of a charitable organization may not vote to authorize, approve, or ratify a contract or transaction related to charitable solicitations if the individual has a material financial interest or a material conflicting interest in the contract or transaction.

A charitable organization may solicit charitable contributions or spend them only for a charitable purpose that is stated in its registration statement and most recent annual report. On the request of a donor, a charitable organization shall provide the donor with a statement of the programs and uses for which the funds are requested. A charitable organization shall establish and exercise controls over fund-raising activities conducted for its benefit, by itself or by a professional solicitor or fund-raising counsel. A charitable organization may not misrepresent the purpose for which funds are solicited.

A charitable organization that intends to end soliciting shall submit to the Secretary of State: a statement of its intent; and a final annual report within 6 months after the end of its fiscal year.

The Secretary of State may cancel the registration of a charitable organization if: the organization failed to submit: a statement of intent and final annual report under § 6–417 of this subtitle within 3 years after the date the statement of intent and final annual report were due; or any annual report or updates required under § 6–408 of this subtitle for a 3–year period; and the Secretary of State sends a notice of cancellation to the last known address and e–mail address of the organization. A charitable organization may request that the Secretary of State reinstate a registration canceled under subsection (a) of this section if the organization: submits to the Secretary of State any outstanding or missing annual reports, supporting materials, and annual fees required under this title; remits all unpaid late fees; or had late fees suspended or waived in accordance with § 6–407(c) of this subtitle; is in good standing with the State Department of Assessments and Taxation, if applicable; has a current tax–exempt status under § 501(c)(3) of the Internal Revenue Code, if applicable; and provides any other information that the Secretary of State requires.