Effective July 1, 2025, Florida adopted Senate Bill 700, which prohibits nonprofit organizations registered to solicit donations in Florida from accepting donations from individuals or entities associated with “foreign countries of concern.” The law also allows charities to voluntarily register with a newly established “Honest Services Registry” to be established by the Florida Department of Agriculture and Consumer Services. This advisory is intended to summarize the key provisions in the new law and provide recommendations for updating your online contribution forms and registering with the Honest Services Registry.
Foreign Source of Concern
With an aim to restrict foreign influence on charitable activities, the new law prohibits solicitations and sales promotions from accepting contributions from individuals and entities designated as “foreign sources of concern” from “foreign countries of concern.” “Foreign countries of concern” are the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolás Maduro, and the Syrian Arab Republic, including any agency of or any other entity under significant control of such foreign country of concern.
“Foreign source of concern” includes any of the following:
- The government or any official of the government of a foreign country of concern;
- A political party or member of a political party or any subdivision of a political party in a foreign country of concern;
- A partnership, an association, a corporation, an organization, or other combination of persons organized under the laws of or having its principal place of business in a foreign country of concern, or a subsidiary of such entity;
- Any person who is domiciled in a foreign country of concern and is not a citizen or lawful permanent citizen of the United States;
- An agent, including a subsidiary or an affiliate of a foreign legal entity, acting on behalf of a foreign source of concern; or
- An entity in which a person, entity, or collection of persons or entities described above has a “controlling interest.”
A “controlling interest” means possession of the power to direct or cause the direction of the management or policies of an entity, whether through ownership of securities, by contract, or otherwise. A person or an entity that directly or indirectly has the right to vote 25% or more of the voting interest of the company or is entitled to 25% or more of its profits is presumed to possess a controlling interest.
Failure to comply with the new law could result in civil penalties and/or prohibition from soliciting contributions or conducting charitable sales promotions in Florida. Criminal penalties may also apply for knowing and willful violations of the law. Going forward, the Florida Department of Agriculture and Consumer Services is authorized to investigate violations and to establish rules to ensure charity compliance.
Honest Services Registry
Creation of a new Honest Services Registry in Florida will allow nonprofit organizations to certify that they do not solicit or accept contributions from foreign sources of concern, providing Florida residents with peace of mind when deciding which charitable organizations to support. To be included in the registry, a charitable organization must, at a minimum, submit an attestation that: (1) the organization does not solicit or accept, directly or indirectly, contributions, funding, support, or services from a foreign source of concern; and (2) the organization’s messaging and content are not directly or indirectly produced or influenced by a foreign source of concern.
Recommendations
Nonprofit organizations that operate in Florida, or those who merely solicit or receive contributions from Florida residents, should modify their online contribution forms to have donors certify that they are not a foreign source of concern. The new law also allows a safe haven for first-time, inadvertent violations if the organization can provide a copy of a contribution form showing the donor falsely asserted that they were not a foreign source of concern, proof that the donation was timely refunded, and the organization adopted a plan to prevent the acceptance of contributions from foreign sources of concern in future solicitations. Accordingly, organizations should take steps towards compliance, such as reviewing their donor lists for known prohibited persons and implementing donation and gift acceptance policies that safeguard against such violations. If you solicit donations in Florida, you should also take the steps necessary to register with the Honest Services Registry once it is created.
If you have any questions about the new law or how to ensure your organization is in compliance, please contact us for assistance.