July 1, 2025
Florida’s SB 700 Enhances Nonprofit Transparency with New Registry
Signed into law on May 20, 2025, as Chapter 2025-22, and effective July 1, 2025, Senate Bill 700 brings significant updates for nonprofit organizations, introducing new regulations overseen by the Florida Department of Agriculture and Consumer Services (FDACS).
Key changes include the creation of the Honest Service Registry to promote transparency by attesting to the absence of foreign influence, a prohibition on soliciting or accepting contributions from foreign sources of concern (e.g., entities from countries designated as adversaries by federal law) and a requirement to attest to election-related activities for registered charities. Organizations exempt from registration requirements are not directly impacted unless they choose to register or trigger registration requirements. The bill, part of broader agricultural reforms, aims to enhance donor trust.
Key Provision for Nonprofits:
Honest Service Registry:
- Creates the Honest Service Registry, administered by the Florida Department of Agriculture and Consumer Services (FDACS), to list charitable organizations that meet specific transparency and integrity criteria.
- To be included, nonprofits must:
- Avoid soliciting or accepting contributions, funding, support, or services from foreign sources of concern (e.g., entities from countries designated as adversaries under federal law, such as 15 C.F.R. § 7.4, including China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria).
- Ensure their messaging, content, and activities are free from influence by such sources.
- Inclusion in the registry is voluntary but enhances donor trust and visibility by signaling compliance with state standards.
- Nonprofits will need to apply through FDACS, providing documentation to verify eligibility, and maintain compliance to remain listed.
Prohibition on Soliciting or Accepting Contributions from Foreign Sources of Concern:
- Prohibits charitable organizations from soliciting or accepting, directly or indirectly, contributions or anything of value (e.g., money, services, or in-kind support) from a foreign source of concern.
- Foreign Source of Concern: Defined as entities from countries listed in federal regulations (e.g., 15 C.F.R. § 7.4), including governments, political parties, corporations, or individuals acting on behalf of such entities from countries like China, Russia, or others.
- Impact: Nonprofits must conduct due diligence to ensure funding sources are free from foreign influence, including reviewing grants, donations, or partnerships. Violation may result in exclusion from the Honest Service Registry, fines, or other enforcement actions by FDACS.
Attestation Regarding Engagement in State or Local Election-Related Activities:
- Requires charitable organizations to attest whether they engage in state or local election-related activities, such as voter registration drives, candidate endorsements, or advocacy on ballot measures, as part of their application for the Honest Service Registry or other FDACS oversight processes.
- The attestation ensures transparency about the nonprofit’s political activities, distinguishing them from charitable purposes under Florida Statutes Chapter 496 (Solicitation of Contributions Act).
- Impact: Nonprofits must accurately report election-related activities to maintain compliance and eligibility for the registry. Misrepresentation may lead to penalties or removal from the registry.
Impact on Nonprofits:
- Compliance Requirements: Nonprofits soliciting in Florida must already register with FDACS under the Solicitation of Contributions Act (unless exempt, e.g., organizations with less than $50,000 in contributions and no paid fundraisers). SB 700 adds:
- Verification of funding sources to avoid foreign sources of concern.
- Attestation of election-related activities, requiring clear documentation of advocacy or voter engagement efforts.
- Application for the Honest Service Registry, if desired, to enhance donor confidence.
- Enforcement: FDACS may impose fines, suspend solicitation rights, or exclude nonprofits from the registry for non-compliance with these provisions.
- Strategic Considerations: Nonprofits should review funding agreements, governance policies, and advocacy activities to ensure alignment with SB 700 requirements, particularly for registry eligibility.