By South Carolina Secretary of State Mark Hammond
Charitable solicitations have evolved dramatically over the years. While charitable appeals used to come mostly through phone calls or mail, today you might be asked to make a charitable donation through a text message, social media post, or even at the grocery store checkout. Despite these changes, one thing remains constant: the need for transparency. Donors need to know who they are giving to and how their contributions are being used by these charitable organizations.
A recent study by Independent Sector revealed that nonprofit organizations contributed $1.5 trillion to the U.S. economy in 2022—or 5.6% of the Gross Domestic Product. Charities play a vital role by allowing people to organize, channel their generosity, and effectively address various needs of their communities. Trust is the foundation of the relationship between charities and donors. Without it, donors will hesitate to contribute, and nonprofit organizations will struggle to fulfill their missions.
As South Carolina’s Secretary of State, I oversee the administration of the Solicitation of Charitable Funds Act, which was passed in 1994 to promote transparency and accountability. The Solicitation of Charitable Funds Act requires charities and professional fundraisers soliciting in our state to register and file financial reports annually. Our office then publishes this information online that so potential donors can easily research a charity or fundraiser before donating.
To further support wise charitable giving, our office launched Give Smart SC in 2023. Give Smart SC is a free mobile app that allows donors to look up a charity whenever and wherever they receive a solicitation. Donors can also use the app to file a confidential complaint if they have any concerns about a donation or a charity’s practices.
In fiscal year 2023-2024, more than 17,000 charitable organizations, 1,300 professional fundraisers, and 650 nonprofit raffles were registered to solicit in South Carolina. The Secretary of State’s Office received nearly 800 complaints—a 74% increase over the prior fiscal year. In addition, the revenue collected from noncompliant charities, professional fundraisers, and raffles increased by over 50% from the prior year. Our office depends on members of the public to report their concerns and stay vigilant when making charitable donations.
Legitimate charities welcome transparency. It demonstrates responsible stewardship of donor resources and builds confidence in charitable giving. To make compliance easier, our office has streamlined the filing process for charities, fundraisers, and raffles by offering the option to file online. This past year, we also launched six online tutorials to guide customers through the online filing process. As a result, online filings have increased, with nearly 85% of charities submitting their annual registration forms online in fiscal year 2023-2024.
Charitable organizations do wonderful work in our state. As your Secretary of State, it is my job to support these efforts by providing transparency and ensuring accountability. I encourage everyone to use the tools offered by our office to research charities, make informed decisions, and to maximize the impact of their generosity. As always, give from the heart, but please give smart!
