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Licensing fundraisers – Utah law upheld

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The Supreme Court has ruled that states may impose licensing and disclosure requirements on professional fundraising consultants, the Associated Press reported Oct. 2.

Acting without comment, the justices rejected a challenge to a Utah law by American Target Advertising, a Virginia fundraising consulting firm.

Lawyers for the firm argued that the law violates free-speech rights and interferes with interstate commerce.

In 1996, American Target was hired to provide “political and related consulting,” but not fundraising, for Judicial Watch, a conservative nonprofit.

When Judicial Watch applied for a fundraising license in Utah, it was told it would not qualify for the license until American Target also registered.

Utah law prohibits a nonprofit organization from soliciting in the state until its fundraising consultant also has obtained a permit.

Judicial Watch obtained the license after it promised not to use any fundraising consultant not registered with the state.

American Target sued, claiming the Utah law violates freedom-of-speech rights.

The state of Utah said its interest in protecting consumers against fraud justified the licensing and disclosure law.

More than half the states impose similar requirements on fundraising consultants.

For full story, go to AOL.

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