Florida enacted legislation effective July 1, 2025 that creates an Honest Service Registry for charitable organizations that register to solicit funds in Florida and prohibits any organization that registers to solicit charitable funds from accepting donations from individuals and entities associated with certain foreign countries.
New Law – Senate Bill 700. The charitable donation provisions may come as a surprise to many since (1) the legislation contains changes to laws related to the Florida Department of Agriculture and Consumer Services (“FDACS”) and is, thus, primarily a farm bill, and (2) the legislation will apply not just to organizations based in Florida, but to any organization that solicits funds in Florida and is, therefore, required to register with the FDACS. In the official Florida Senate summary of Senate Bill 700,[1] the applicable provisions are not described with any specificity when it states that the Bill “[c]reates the Honest Service Registry to provide the residents of this state with the information necessary to make an informed choice when deciding which charitable organizations to support.” That seems simple and helpful enough, but let’s take a closer look…
Creation of Honest Service Registry. What is this helpful “Honest Service Registry” that will allow residents of Florida to make informed choices when choosing which charitable organizations to support? The legislation requires the creation of the “Honest Service Registry” by the FDACS, which will be accessible on its website, and for FDACS to adopt rules to implement the registry. To be listed in the registry, an organization must – “at a minimum” – attest 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. Since the submission of the attestation is voluntary, an organization is not required to be included in the registry, but if an organization does not submit the attestation, then donors might assume that the organization is, somehow, not “honest” and that only organizations listed in the registry have the State of Florida’s ‘seal of approval.’
“Foreign Source of Concern” Defined. What are the “foreign sources of concern” from which an organization can attest to not soliciting or accepting donations and which are not directly or indirectly producing or influencing the organization’s messaging and content? A ”foreign source of concern” includes: (a) the government or any official of the government of a “foreign country of concern”; (b) a political party or member of a political party or any subdivision of a political party in a foreign country of concern; (c) a partnership, association, corporation, 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; (d) any person who is domiciled in a foreign country of concern and is not a citizen or lawful permanent citizen of the United States; (e) an agent, including a subsidiary or an affiliate of a foreign legal entity, acting on behalf of a foreign source of concern; or (f) an entity in which a person, entity, or collection of persons or entities described in paragraphs (a)-(e) has a “controlling interest.” The term “controlling interest” is defined very broadly as the 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 percent or more of the voting interest of the company or is entitled to 25 percent or more of its profits is presumed to possess a controlling interest. The applicable “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.
So, if an organization wants to be listed in the FDACS’s Honest Service Registry, then it should not solicit or accept, directly or indirectly, contributions, funding, support, or services from a foreign source of concern, and not have its messaging and content directly or indirectly produced or influenced by a foreign source of concern. Apart from the shockingly broad presumption in the definition of “controlling interest” and the possibility of an “indirect” donation from such a source, that seems straightforward enough… but, wait, there’s more…
The Gut Punch – Prohibition on Accepting Donations. What the Bill Summary does NOT mention is the newly enacted prohibition on any person in connection with the planning, conduct, or execution of any solicitation or charitable or sponsor sales promotion from soliciting or accepting contributions or anything of value from any individual or entity designated as a “foreign source of concern.” This prohibition adds to the existing list of prohibited activities for any organization that is subject to the Florida charitable solicitation registration requirements, i.e., charitable organizations, professional fundraisers, fundraising consultants, and commercial co-venturers, and it includes non-Florida organizations that fundraise in Florida. In short, if you are required to register with the FDACS to solicit funds in Florida, then you CANNOT solicit or accept any support from a foreign source of concern. Period. Whether you want to be on the Honest Service Registry or not. Failure to comply with the requirements of the new legislation may expose individuals and entities to civil and criminal penalties, as well as a potential ban from raising contributions in or from Florida or conducting charitable sales promotions within the state.
Implications for Organizations that Solicit Funds in Florida. Considering how broadly a foreign source of concern is defined, this prohibition is likely to put a tremendous burden on – and be a genuine trap for the unwary for – charitable organizations based in Florida and national organizations that register to solicit finds in Florida. While some donors are obvious “foreign sources of concern,” others may be much more difficult to identify. For example, a donation from a non-U.S. individual who is domiciled in Russia would clearly constitute a foreign source of concern under the new legislation. Moreover, a U.S. private foundation in which that same individual is one of 3 directors and has the right to vote 33% of the “voting interest of the company” would also presumably be a foreign source of concern as a person who has “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.” It would be difficult for a recipient organization to gather the requisite information on a donor-by-donor basis to determine whether or not any entity donor is a “foreign source of concern.”
Thus, any not for profit organization that solicits funds in Florida should consider updating their website and contribution forms to include appropriate questions and affirmations regarding the controlling interests of new donors in an effort to comply with the new legislation. In addition, not for profit organizations that solicit funds in Florida should review the foreign source of concern status of existing donors with respect to outstanding grants or donations. These not for profit organizations can expect increased compliance efforts and costs related to the collection and maintenance of this information.
Political Campaign Activity Attestation. In addition to the foreign source of concern rules, the new legislation addresses campaigning activity by charitable organizations by requiring that when initially registering to solicit charitable contributions, or amending or renewing an existing solicitation registration, the organization must attest that it is either registered with the Florida Department of State if it is engaged in state and local election-related activities, or that it is not engaged in such activities if prohibited by federal or state law. Furthermore, the new legislation authorizes the FDACS to investigate potential violations of the law and refer charities or sponsors to the Florida Elections Commission for investigation of violations involving state and local election-related activities.
Summary. In short, the new Senate Bill 700 creates the “Honest Service Registry,” a voluntary list of organizations that do not solicit or accept contributions from and are not influenced by a “foreign source of concern.” Separate from the Honest Service Registry, the bill also prohibits anyone involved in charitable donation promotion from soliciting or accepting contributions from a “foreign source of concern.” This provision will significantly increase compliance burdens and expense, and may lead to serious consequences for many charitable organizations, both within and outside of Florida.
[1] https://www.flsenate.gov/Committees/billsummaries/2025/html/3731