Running a Charity Auction? Colorado Just Cut a Major Red Tape Hurdle for Your Auctioneer.

The Bottom Line

Ever been to a charity gala with a fast-talking auctioneer? Until now, those auctioneers had to jump through massive regulatory hoops meant for professional fundraising firms, even if they were just volunteering. This new rule cuts the red tape for auctioneers who help out at charity events, as long as they don't actually handle the money.

What This Bill Actually Does

If you have ever organized a major fundraiser, you know the state keeps a very close eye on who is asking for money. The Colorado Charitable Solicitations Act was originally written to stop scammy telemarketers and predatory fundraising operations from pocketing the lion's share of charitable donations. Under current law, anyone who gets compensated to help solicit contributions in Colorado is branded a paid solicitor.

That label comes with heavy baggage. To legally operate as a paid solicitor, you have to register with the Secretary of State, pay annual fees, file detailed solicitation notices before an event, deposit all funds into a federally insured bank within two business days, and file comprehensive financial reports. You also have to secure a $15,000 surety bond. That makes perfect sense for a massive direct-mail fundraising corporation. But for a local auctioneer hired to call bids at a Saturday night hospital gala? It was a massive, expensive regulatory headache that swept up professionals who never even touched the organization's money.

House Bill 26-1025 creates a common-sense carve-out. It officially amends the definition of a paid solicitor to completely exempt individuals providing auctioneer services to a charity. The exemption applies whether the auctioneer is getting paid their normal rate or volunteering their time for free. However, there is one non-negotiable catch to this freedom: the auctioneer cannot directly receive or handle monetary donations or charitable funding. If the auctioneer stays on the stage and lets the charity's staff handle the credit cards and the cash, they are entirely free from the state's paid solicitor requirements.

What It Means for You

If you are the type of person who regularly raises your hand to sit on the board of a local nonprofit, organize the annual school PTA auction, or help run the local animal rescue's yearly gala, this rule change is going to make your life noticeably easier. Finding a great auctioneer is crucial—a professional who knows how to work a room can easily double the amount of money your organization brings in during a live paddle-raise.

Before this exemption, a lot of highly skilled auctioneers simply refused to do small or mid-sized charity events. The hassle of registering with the state, paying fees, and tying up capital in a $15,000 surety bond just wasn't worth it for a few weekend gigs. Sometimes, charities were forced to use amateur volunteers who meant well but left thousands of dollars on the table. By removing these excessive regulatory hurdles, this bill vastly expands the pool of talented professionals willing to help out at your next fundraiser. You will likely find it much easier to recruit top-tier auctioneers, either as paid contractors or generous volunteers, which translates directly to more funding for the causes you care about.

When you are in the planning phases for your next big event, just remember that the layout of your room matters. To ensure your auctioneer stays legally protected by this new exemption, you must keep them entirely separated from the checkout process. Your organization's treasurer, staff, or trusted volunteers must be the ones swiping the credit cards, collecting the checks, and handing out the receipts. As long as your auctioneer strictly sticks to calling the bids and hyping up the crowd—and doesn't touch the actual money—your event will run smoothly and legally without anyone needing to file a mountain of paperwork with the Secretary of State.

What It Means for Your Business

For professional auctioneers, event management agencies, and independent contractors, this legislation is a massive sigh of relief that directly impacts your bottom line and your administrative workload. You no longer have to treat a Saturday night charity gig like a highly regulated financial transaction. Once this takes effect (slated for mid-August 2026), you can freely contract with nonprofits without paying the $175 annual registration fee, filing pre-campaign notices, or locking up your operating capital in a mandatory $15,000 bond.

The dividing line between a legally exempt auctioneer and a heavily regulated paid solicitor now comes down entirely to who touches the money. The state is making a clear distinction between the performance of auctioneering and the financial custody of donations. If your business model includes providing full-service event management—meaning your team processes the payments, holds the funds in a temporary escrow account, or runs the physical checkout desk at the end of the gala—you will still be classified as a paid solicitor and must comply with the full Charitable Solicitations Act, including the strict requirement to deposit funds within two business days.

To take full advantage of this new safe harbor, you need to review and likely update your standard service agreements. Make sure your contracts explicitly state that the charitable organization is solely responsible for receiving, handling, and processing all contributions and payments. You want to build a bulletproof legal firewall between your microphone and their money. By clearly documenting that your scope of work strictly prohibits your staff from handling the funds, you protect your business from accidental compliance violations and keep the state's regulatory burden exactly where it belongs: off your shoulders.

Follow the Money

This bill has a highly specific, but remarkably small, fiscal footprint. According to the state's financial analysts, there are currently only about 100 paid solicitors registered with the Secretary of State in Colorado. Of that group, the state estimates that roughly 15 are actually auctioneers who will qualify for this new exemption. Because they will no longer be required to pay the $175 registration and renewal fee, the Department of State Cash Fund will see a minor revenue decrease of up to $2,625 annually beginning in fiscal year 2026-27.

Because Colorado operates under the Taxpayer's Bill of Rights (TABOR), less revenue coming into state cash funds means there is slightly less money required to be refunded to taxpayers out of the General Fund. As for the state's workload, the Department of State will need to spend a little time updating their program materials and fact sheets to reflect the new auctioneer exemption, but they will handle that administrative cleanup using their existing budget. No new taxpayer money needs to be appropriated to make this regulatory cut a reality.

Where This Bill Stands

HB26-1025 is currently Signed Into Law. The latest official action came on 03/27/2026: Governor Signed.

That means the legislative process is complete and the bill is now law. The remaining questions are about implementation timing and how agencies, businesses, or local governments respond.