Court Overturns Utah Solicitation Law
"The decision will impact not only direct mail agencies but the thousands of nonprofit organizations which use the mail and other means to communicate with millions of citizens," ATA said in a statement.
The 10th Circuit ruled that fundraising consultants do not have to post cash or bonds as a condition for their nonprofit organization clients to send direct mail solicitations into a state. The court also ruled that certain provisions of the Utah law were unconstitutional. In particular, it agreed with ATA that the law "confers unbridled discretion" upon the state official in her capacity to approve or deny such permits, and any such a provision "is unconstitutional on its face."
The decision is now mandatory in the states of Utah, Colorado, New Mexico, Kansas, Wyoming and Oklahoma.