Key takeaways
- Tax-exempt charities that make their own calls aren't covered by the FTC's Telemarketing Sales Rule, and calls asking for charitable gifts are exempt from the National Do Not Call Registry.
- For-profit firms that call for a charity must honor requests not to be called for that charity, call only between 8 a.m. and 9 p.m. local time, send caller ID and make two prompt disclosures.
- Autodialed or prerecorded calls to cellphones need the person's prior consent, even when a nonprofit makes them.
Two sets of federal rules
Fundraising calls fall under two federal rule sets. The Federal Trade Commission's Telemarketing Sales Rule (TSR, 16 CFR Part 310) covers telemarketing campaigns, including campaigns to get a charitable contribution. The Federal Communications Commission's rules under the Telephone Consumer Protection Act (TCPA, 47 CFR 64.1200) cover autodialed, prerecorded and artificial-voice calls and texts.
Under the TSR, tax-exempt charities that run their own calling aren't covered. The USA PATRIOT Act of 2001 brought for-profit telemarketers that solicit gifts for charities, which the FTC calls telefunders, within the rule. Under the FCC's rules, calls made by or on behalf of a tax-exempt nonprofit aren't telephone solicitations, though other TCPA limits still apply.
The National Do Not Call Registry
Calls asking for charitable contributions are exempt from the National Do Not Call Registry. That's true whether your staff makes the calls or a for-profit firm calls for you. Being on the registry doesn't stop a donor from getting a fundraising call.
Requests not to be called
The exemption doesn't cover a direct request. If someone tells a telefunder not to call them again from or on behalf of a specific charity, the telefunder must stop calling for that charity. Telefunders must keep a separate do-not-call list for each charity they call for. The FTC lists penalties of up to $51,774 per violation for calling someone on a charity's list.
Charities that call for themselves should honor these requests too. Record them in your donor database, and send them to any vendor before a campaign starts so a donor who asked you to stop doesn't hear from your caller.
Disclosures and honesty
Before asking for a gift, a telefunder must promptly tell the person the name of the charity it's calling for and that the purpose of the call is to ask for a charitable contribution. The TSR also bans misrepresenting the charity's mission, whether a gift is tax deductible, how the money will be used, what share goes to the charity, and any affiliation or endorsement.
Calling hours, caller ID and dropped calls
- Hours: telefunders can't call homes before 8 a.m. or after 9 p.m. local time at the place called, unless the person agreed.
- Caller ID: telefunders must send a phone number, plus their name when the carrier allows. They may instead show the charity's name and a donor service number answered during regular business hours.
- Dropped calls: a call is abandoned if the person answers and isn't connected to a live caller within two seconds of their greeting. The FTC's safe harbor requires abandonment of no more than 3% of answered calls per campaign (or per 30 days), letting unanswered calls ring for 15 seconds or four rings, playing a recorded message with the seller's name and number when no caller is free, and keeping records.
Prerecorded and autodialed calls
Telefunders can't make cold prerecorded calls. They may send prerecorded calls to a charity's members or previous donors, but the message must offer an opt-out right after it names the charity and the purpose of the call. A keypress or voice opt-out must add the number to the charity's do-not-call list and end the call. If a machine might answer, the message must give a toll-free number that reaches the same automated opt-out, available at all hours during the campaign.
FCC rules add limits for everyone, including nonprofits. Autodialed or prerecorded calls to cellphones need the person's prior express consent. Prerecorded calls from a tax-exempt nonprofit to a home line are limited to three in any consecutive 30-day period, must name the organization at the start, give a phone number, and offer an automated opt-out.
Records and state rules
The TSR requires telefunders to keep records, including records of consent, for two years. Many states also have their own telemarketing and charitable solicitation laws, and many require professional fundraisers or solicitors to register before calling. See our fundraising call rules by state.
Do-not-call checklist
- Record every request not to be called, and share the list with vendors before each campaign.
- Call only between 8 a.m. and 9 p.m. in the donor's time zone.
- Name your organization and the reason for the call at the start.
- Show a caller ID number that donors can call back.
- Get consent before any autodialed or prerecorded call to a cellphone.
- Keep consent and call records for at least two years.
How KFG helps
KFG campaigns use live, trained callers, not prerecorded messages. Ask us how we handle do-not-call requests, calling hours and disclosures for your campaign, or read about phone fundraising.
Related: do-not-call rules for charities, texting rules for nonprofits, AI voice fundraising calls and fundraising call rules by state.