1. The Legal Traps and Pitfalls

2.  Introduction
 Fundraising
 Social media
◦ Trademark
◦ Defamation
 Minors
 CAN SPAM Act
◦ E-mail Marketing

3.  Online giving accounted for $4-6 billion in
donations last year in US alone
 Social networks and blogs/websites are the
fourth most popular online activities
 Email is falling behind Social networks as
method of exchanging and sharing
information
 Average age of online donors is rising each
year

4.  The average gift size among nonprofits grew
from $56 to $60
 Online gifts are larger than the average gift
from traditional channels

5. “Organizations and web designers must be
aware that the traditional rules with respect
to prohibitions on providing particular
services, treatment of advertising income,
sales activity, as well as lobbying restrictions
still apply to website activities.”
2000 EO CPE at 140.

6.  Tax-exempts are not exempt from all taxes, only
from those taxes that would otherwise apply to
income received from activities that are substantially
related to their exempt purposes.

7.  On-line Charity Malls
◦ % of purchase price goes to charity
 Virtual Storefronts
◦ Section 513(c) Fragmentation Rule
 IRS will review each piece of merchandise

8. ◦ Trademark
 Seek permission
 Avoid using other’s trademarks
◦ Copyright
 Who owns the work
 Monitor for misuse
 Use symbols

9.  Obtain Licenses from All Authors and
Speakers
◦ Video
◦ Text
 Applies to All Intellectual Property
◦ Text, Graphics, Photos, Video

10.  Adopt a standard policy and practice for all to
sign
 All authors sign standard agreements
◦ Obtain right to publish AND post online
 Speakers grant rights to post online

11.  Defamation
◦ Comments made by others can be attributed to
organization (Cisco Systems lawsuit)
◦ Protections
 Federal Communications Decency Act §230
 Disclaimers and terms of use
 Take-down policy
 Refrain from commenting on third-party posts
 Consider available screening capabilities

12.  Develop club policy that addresses permissible use
 Monitoring
 Reserve right to remove content and comments,
block users, etc
 Our community is an echo of our voice…we
must set the tone.

13. ◦ Antitrust
◦ Defamation
◦ Contributory Copyright Infringement
◦ Political Activity
◦ Providing or promoting “Professional” Advice

15.  Emails that advertise or promote a
commercial product or service, such as
membership in the organization or the sale of
organization publications, events, etc.
 Members generally excluded

16.  Give clear notice of opportunity to opt-out.
◦ MUST be in every email message.
 Provide a functioning opt-out in every email message. This
can be a return email address or other Internet-based
mechanism that is capable of receiving opt-out requests for
at least 30 days after the transmission of the original
message.
 Further, if the recipient has opted-out, the sender may not
exchange or otherwise transfer or release the email address
of the recipient even within the club.
 Email service protects Club from fines and other liabilities.
 Constant Contact, easy to use, protects us.

17.  Provide a valid physical postal address of the
sender.
 Clear and conspicuous notice that email is a
solicitation
 Make sure the "from" line accurately and
clearly reflects the sender.
 Use a valid subject line directly related to
content.

18.  Photo Subject holds rights of publicity
• get release from parent or guardian before use
photo beyond consent.
• consider children’s issues on Internet.
 Gain rights for all future uses

19. 1. Children’s Online Privacy Protection Act of
1998 (COPPA)
• Collection of PII directly from a minor (children
under 13)
• Collecting and storing Personally Identifiable
Information

20. 1. Know when consent of the PARENT/GUARDIAN is
required
2. Know when consent of the ANOTHER SUPERVISING
ADULT is sufficient
3. Know when no parental/guardian consent is
required
4. Disclose your privacy policy
5. Know the proper use of online communications
6. Allow for refusal to participate at any time

21.  Obtain from everyone in film/video.
 Make sure you have all people and possible, future rights needed.
 Photo participant release; Photographer release
 Privacy Rights: separate from commercial use (invasion of privacy
could apply to putting someone’s picture on the Internet).

22.  Draft a privacy protection policy:
What personal information is being gathered about user
How the information will be used
Who the information will be shared with, if anyone
Choices available regarding how collected information is
used
Safeguards in place to protect the information from loss,
misuse, or alteration
How user can update or correct inaccuracies in his or
her information.
Provide mechanism for consent, access and correction.