SECRETARY OF STATE OF
MARYLAND
v.
J. H. MUNSON CO.
467 U.S. 947
(1984)
SECRETARY OF
STATE OF MARYLAND
v.
JOSEPH H. MUNSON CO., INC.
CERTIORARI TO
THE COURT OF APPEALS OF MARYLAND
No. 82-766.
Argued October 31, 1983
Decided June 26, 1984
A Maryland statute prohibits a charitable
organization, in connection with any fundraising activity,
from paying expenses of more than 25% of the amount raised,
but authorizes a waiver of this limitation where it would
effectively prevent the organization from raising
contributions. Respondent is a professional fundraiser whose
Maryland customers include various chapters of the Fraternal
Order of Police, at least one of whom was reluctant to
contract with respondent because of the statute's percentage
limitation. Respondent brought suit in a Maryland Circuit
Court for declaratory and injunctive relief, alleging that
it regularly charges an FOP chapter in excess of the 25%
limitation, that petitioner Secretary of State had informed
it that if it refused to comply with the statute it would be
prosecuted, and that the statute violated its right to free
speech under the First and Fourteenth Amendments. Without
addressing petitioner's argument that respondent lacked
standing to assert its claims, the Circuit Court upheld the
statute, and the Maryland Court of Special Appeals affirmed.
The Maryland Court of Appeals reversed, holding that
respondent had standing to challenge the statute's facial
validity, that the statute was unconstitutional, and that
its flaws were not remedied by the waiver provision.
Held:
1. Respondent has standing to challenge the statute. Not
only does respondent satisfy the "case" or "controversy"
requirement of Art. III, because it has suffered both
threatened and actual injury as a result of the statute, but
there also is no prudential reason against allowing
respondent to challenge the statute. Where the claim is that
the statute is overly broad in violation of the First
Amendment, the Court has allowed a party to assert the
rights of another without regard to the ability of the other
to assert his own claim. The activity sought to be protected
is at the heart of the business relationship between
respondent and its customers, and respondent's interests in
challenging the statute are completely consistent with the
First Amendment interests of the charities it represents.
Petitioner's concern that respondent should not have
standing to challenge the statute as overbroad because it
has not demonstrated that the statute's overbreadth is
"substantial," is more properly [467 U.S. 947, 948]
reserved for the determination of respondent's challenge on
the merits. Pp. 954-959.
2. Regardless of the waiver provision,
the statute is unconstitutionally overbroad, its percentage
restriction on charitable solicitation being an
unconstitutional limitation on protected First Amendment
solicitation activity.
Schaumburg v. Citizens for a Better
Environment
444 U.S. 620. Pp. 959-970.
(a) The waiver provision does not save
the statute. Charitable organizations whose high
solicitation and administrative costs are due to information
dissemination, discussion, and advocacy of public issues,
rather than to fraud, remain barred by the statute from
carrying on those protected First Amendment activities. Pp.
962-964.
(b) This is not a "substantial
overbreadth" case where the plaintiff must demonstrate that
the statute "as applied" to him is unconstitutional. Here
there is no core of easily identifiable and constitutionally
proscribable conduct that the statute prohibits. The statute
cannot distinguish organizations that have high fundraising
costs not due to protected First Amendment activities from
those that have high costs due to protected activity. The
flaw in the statute is not simply that it includes some
impermissible applications but that in all its applications
it operates on a fundamentally mistaken premise that high
solicitation costs are an accurate measure of fraud. Where,
as here, a statute imposes a direct restriction on protected
First Amendment activity and where the statute's defect is
that the means chosen to accomplish the State's objectives
are too imprecise, so that in all its applications the
statute creates an unnecessary risk of chilling free speech,
the statute is properly subject to facial attack. Pp.
964-968.
(c) Whether the statute regulates
before-or after-the-fact is immaterial. Whether the charity
is prevented from engaging in protected First Amendment
activity by lack of a solicitation permit or by knowledge
that its fundraising activity is illegal if it cannot
satisfy the percentage limitation, the chill on the
protected activity is the same. The facts that the statute
restricts only fundraising expenses and not other expenses
and that a charity may elect whether to be bound by its
fundraising percentage for the prior year or to apply the
25% limitation on a campaign-by-campaign basis, do nothing
to alter the fact that the significant fundraising activity
protected by the First Amendment is barred by the percentage
limitation. And the fact that the statute regulates all
charitable fundraising and not just door-to-door
solicitation, does not remedy the fact that the statute
promotes the State's interests only peripherally. Pp.
968-970. 294 Md. 160, 448 A. 2d 935, affirmed. [467 U.S.
947, 949]
BLACKMUN, J., delivered the opinion of
the Court, in which BRENNAN, WHITE, MARSHALL, and STEVENS,
JJ., joined. STEVENS, J., filed a concurring opinion, post,
p. 970. REHNQUIST, J., filed a dissenting opinion, in which
BURGER, C. J., and POWELL and O'CONNOR, JJ., joined, post,
p. 975.
Diana G. Motz, Assistant Attorney General
of Maryland, argued the cause for petitioner. With her on
the briefs were Stephen H. Sachs, Attorney General, and
James G. Klair and Robert A. Zarnoch, Assistant Attorneys
General.
Yale L. Goldberg argued the cause for
respondent. With him on the brief was Donald E.
Sinrod.*
*A brief of amici curiae urging reversal
was filed for the State of Connecticut et al. by Francis X.
Bellotti, Attorney General of Massachusetts, and Catharine
W. Hantzis, Leslie G. Espinoza, and Dana L. Mason, Assistant
Attorneys General, Joseph I. Lieberman, Attorney General of
Connecticut, Neil F. Hartigan, Attorney General of Illinois,
Robert T. Stephan, Attorney General of Kansas, Irwin I.
Kimmelman, Attorney General of New Jersey, Robert Abrams,
Attorney General of New York, LeRoy S. Zimmerman, Attorney
General of Pennsylvania, Mark Meierhenry, Attorney General
of South Dakota, and William M. Leech, Jr., Attorney General
of Tennessee.
Briefs of amici curiae urging affirmance
were filed for the American Civil Liberties Union et al. by
Robert B. Hummel, Thomas J. McGrew, Charles S. Sims, and
Arthur B. Spitzer; for Independent Sector et al. by Adam
Yarmolinsky, Stephen T. Owen, and Michael B. Jennison; and
for Box Office, Inc., by Barry A. Fisher, Robert C. Moest,
and David Grosz.
JUSTICE BLACKMUN delivered the opinion of
the Court.
In Schaumburg v. Citizens for a Better
Environment, 444 U.S. 620 (1980), this Court, with one
dissenting vote, concluded that a municipal ordinance
prohibiting the solicitation of contributions by a
charitable organization that did not use at least 75% of its
receipts for "charitable purposes" was unconstitutionally
overbroad in violation of the First and Fourteenth
Amendments. The issue in the present case is whether a
Maryland statute with a like percentage limitation, but with
provisions that render it more "flexible" than the [467
U.S. 947, 950] Schaumburg ordinance, can withstand
constitutional attack. The Court of Appeals of Maryland
concluded that, even with this increased flexibility, the
percentage restriction on charitable solicitation was an
unconstitutional limitation on protected First Amendment
solicitation activity. We agree with that conclusion and
affirm the judgment of the Court of Appeals.
I
Joseph H. Munson Co., Inc. (Munson), an
Indiana corporation, instituted this action in the Circuit
Court for Anne Arundel County, Md., seeking declaratory and
injunctive relief against the Secretary of State of Maryland
(Secretary). Munson is a professional for-profit fundraiser
in the business of promoting fundraising events and giving
advice to customers on how those events should be conducted.
Its Maryland customers include various chapters of the
Fraternal Order of Police (FOP). Section 103A et seq., Art.
41, Md. Ann. Code (1982),1 concern charitable organizations.
Section 103D prohibits such an organization, in connection
with any fundraising activity, from paying or agreeing to
pay as expenses more than 25% of the amount raised.2 Munson
in its complaint alleged that it [467 U.S. 947, 951]
regularly charges an FOP chapter an amount in excess of 25%
of the gross raised for the event it promotes. App. 4.
Munson also alleged that the Secretary had informed it that
it was subject to 103D and would be prosecuted if it failed
to comply with the provisions of that statute. App.
5.
In its initial complaint, filed March 7,
1978, Munson took the position that its contracts with the
FOP should not be subject to 103A et seq. The Circuit Court
dismissed that challenge for failure to exhaust
administrative remedies. The court concluded, however, that
Munson could attack the statutes as an improper delegation
of legislative authority, in [467 U.S. 947, 952]
violation of the Maryland Constitution. App. 13. Munson then
amended its complaint to allege that the statutes effected
an unconstitutional infringement on its right to free speech
and assembly under the First and Fourteenth Amendments of
the United States Constitution. Id., at 26.
The Secretary questioned Munson's
standing to assert its claims. He urged that 103D is
directed to acts of charitable organizations and, therefore,
that only an organization of that kind can challenge the
statute's constitutionality. The Secretary also urged that
Munson's claims presented no actual controversy, because
Munson had failed to exhaust its administrative remedies
and, consequently, there had been no binding determination
that the statute would apply to Munson's contracts. App.
29.
The Circuit Court did not address the
standing argument, but upheld the statute on the merits.
App. to Pet. for Cert. 38a. It concluded that because the
statute included a provision authorizing a waiver of the
percentage limitation "in those instanceswhere the 25%
limitation would effectively prevent a charitable
organization from raising contributions," it was
sufficiently flexible to accommodate legitimate First
Amendment interests. Id., at 46a. The court also rejected
Munson's state-law claim that the statute was an
impermissible delegation of legislative authority.
Munson appealed to the Court of Special
Appeals of Maryland. The Secretary did not take a
cross-appeal. The Court of Special Appeals affirmed the
judgment of the Circuit Court. 48 Md. App. 273, 426 A. 2d
985 (1981).
Both Munson and the Secretary then
petitioned the Court of Appeals of Maryland for writs of
certiorari. Munson challenged the validity of the statute
and the Secretary challenged Munson's standing. The court
granted both petitions and, by a unanimous vote, reversed
the judgment of the Court of Special Appeals. 294 Md. 160,
448 A. 2d 935 (1982). It expressed doubt about the
Secretary's ability to challenge Munson's standing when the
Secretary had not taken an appeal from the Circuit Court's
judgment, but, assuming that [467 U.S. 947, 953] the
issue was properly before the court, nonetheless concluded
that Munson did have standing to challenge the facial
validity of 103D. The court found that, based on the
allegations of its complaint and under the facts as
stipulated in the trial court, see App. to Pet. for Cert.
39a, Munson clearly had suffered injury as a result of
103D.3 The court rejected the contention that Munson may not
assert the First Amendment rights of the FOP chapters,
noting that where a statute is directed at persons with whom
the plaintiff has a business or professional relationship,
and impairs the plaintiff in that relationship, it normally
is accorded standing to challenge the validity of the
statute. 294 Md., at 171, 448 A. 2d, at 941. In addition, as
this Court in Schaumburg held, 444 U.S., at 634,
"[g]iven a case or controversy, a litigant whose own
activities are unprotected may nevertheless challenge a
statute by showing that it substantially abridges the First
Amendment rights of other parties not before the court." 294
Md., at 172, 448 A. 2d, at 942.
On the merits, the court concluded that
Schaumburg required that the Maryland statute be ruled
unconstitutional. It rejected the Secretary's argument that
the statute was valid because it did not require a permit
prior to solicitation, and imposed criminal penalties only
for solicitation in violation of the statute. 294 Md., at
176-179, 448 A. 2d, at 944-945. The court also concluded
that the flaws in the statute were not remedied by the
provision authorizing a waiver of the 25% limitation
whenever it would effectively prevent the charitable
organization from raising contributions. Id., at 179-181,
448 A. 2d, at 945-946. The court found that the statutory
authorization for an exemption from the percentage
limitation is "extremely narrow." It did not remedy the flaw
[467 U.S. 947, 954] inherent in a percentage
limitation on solicitation costs - that charities that make
a policy decision to use more than 25% of the proceeds
raised for purposes other than "charitable" are denied their
constitutional right to do so, and are lumped together with
those engaging in fraud. Id., at 180-181, 448 A. 2d, at 946.
In sum, in the view of the Court of Appeals, the 25%
limitation, like that in the ordinance addressed in
Schaumburg, is not a "narrowly drawn regulatio[n]
designed to serve [the State's legitimate] interests
without unnecessarily interfering with First Amendment
freedoms." 444 U.S., at 637.
We granted certiorari to review both
determinations of the Court of Appeals, namely, that Munson
had standing to challenge the validity of 103D, and that the
statute was unconstitutional on its face. 459 U.S. 1102
(1983).
II
Standing. The first element of the
standing inquiry that Munson must satisfy in this Court is
the "case" or "controversy" requirement of Art. III of the
United States Constitution. Singleton v. Wulff, 428 U.S.
106, 112 (1976).4 Munson is a professional fundraising
company. Because its contracts call for payment in excess of
25% of the funds raised for a given event, it is subject,
under 103L, to civil restraint and criminal liability. Prior
to initiation of the present lawsuit, the Secretary informed
Munson that if it refused to comply with 103D, it would be
prosecuted. The parties stipulated before trial that the
Montgomery County Chapter of the FOP was reluctant to enter
into a contract with Munson because of the limitation
imposed by 103D. Munson has [467 U.S. 947, 955]
suffered both threatened and actual injury as a result of
the statute. See Singleton v. Wulff, supra; Simon v. Eastern
Kentucky Welfare Rights Organization, 426 U.S. 26 (1976);
Linda R. S. v. Richard D., 410 U.S. 614, 617 (1973).
In addition to the limitations on
standing imposed by Art. III's case-or-controversy
requirement, there are prudential considerations that limit
the challenges courts are willing to hear. "[T]he
plaintiff generally must assert his own legal rightsand
interests, and cannot rest his claim to relief on the legal
rights or interests of third parties." Warth v. Seldin, 422
U.S. 490, 499 (1975) (citing Tileston v. Ullman, 318 U.S. 44
(1943); United States v. Raines, 362 U.S. 17 (1960); and
Barrows v. Jackson, 346 U.S. 249 (1953)). The reason for
this rule is twofold. The limitation "frees the Court not
only from unnecessary pronouncement on constitutional
issues, but also from premature interpretations of statutes
in areas where their constitutional application might be
cloudy," United States v. Raines, 362 U.S., at 22, and it
assures the court that the issues before it will be concrete
and sharply presented.5 See Baker v. Carr, 369 U.S. 186, 204
(1962). Munson is not a charity and does not claim that its
own First Amendment rights have been or will be infringed by
the challenged statute.6 Accordingly, the Secretary insists
that [467 U.S. 947, 956] Munson should not be heard
to complain that the State's charitable-solicitation rule
violates the First Amendment.
The Secretary concedes, however, that
there are situations where competing considerations outweigh
any prudential rationale against third-party standing, and
that this Court has relaxed the prudential-standing
limitation when such concerns are present. Where practical
obstacles prevent a party from asserting rights on behalf of
itself, for example, the Court has recognized the doctrine
of jus tertii standing. In such a situation, the Court
considers whether the third party has sufficient
injury-in-fact to satisfy the Art. III case-or-controversy
requirement, and whether, as a prudential matter, the third
party can reasonably be expected properly to frame the
issues and present them with the necessary adversarial zeal.
See, e. g., Craig v. Boren, 429 U.S. 190, 193-194
(1976).
Within the context of the First
Amendment, the Court has enunciated other concerns that
justify a lessening of prudential limitations on standing.
Even where a First Amendment challenge could be brought by
one actually engaged in protected activity, there is a
possibility that, rather than risk punishment for his
conduct in challenging the statute, he will refrain from
engaging further in the protected activity. Society as a
whole then would be the loser. Thus, when there is a danger
of chilling free speech, the concern that constitutional
adjudication be avoided whenever possible may be outweighed
by society's interest in having the statute challenged.
"Litigants, therefore, are permitted to challenge a statute
not because their own rights of free expression are
violated, but because of a judicial prediction or assumption
[467 U.S. 947, 957] that the statute's very
existence may cause others not before the court to refrain
from constitutionally protected speech or expression."
Broadrick v. Oklahoma, 413 U.S. 601, 612 (1973).7
In the instant case, the Secretary's most
serious argument against allowing Munson to challenge the
statute is that there is no showing that a charity cannot
bring its own lawsuit. Although such an argument might
defeat a party's standing outside the First Amendment
context, this Court has not found the argument dispositive
in determining whether standing exists to challenge a
statute that allegedly chills free speech. To the contrary,
where the claim is that a statute is overly broad in
violation of the First Amendment, the Court has allowed a
party to assert the rights of another without regard to the
ability of the other to assert his own claims and "`with no
requirement that the person making the attack demonstrate
that his own conduct could not be regulated by a statute
drawn with the requisite narrow specificity.'" Broadrick v.
Oklahoma, 413 U.S., at 612, quoting Dombrowski v. Pfister,
380 U.S. 479, 486 (1965). See also Schaumburg, 444 U.S., at
634 ("Given a case or controversy, a litigant whose own
activities are unprotected may nevertheless challenge a
statute by showing that it substantially [467 U.S. 947,
958] abridges the First Amendment rights of other
parties not before the court").
The fact that, because Munson is not a
charity, there might not be a possibility that the
challenged statute could restrict Munson's own First
Amendment rights does not alter the analysis. Facial
challenges to overly broad statutes are allowed not
primarily for the benefit of the litigant, but for the
benefit of society - to prevent the statute from chilling
the First Amendment rights of other parties not before the
court. Munson's ability to serve that function has nothing
to do with whether or not its own First Amendment rights are
at stake. The crucial issues are whether Munson satisfies
the requirement of "injury-in-fact," and whether it can be
expected satisfactorily to frame the issues in the case. If
so, there is no reason that Munson need also be a charity.
If not, Munson could not bring this challenge even if it
were a charity.
The Secretary concedes that the Art. III
case-or-controversy requirement has been met, see Tr. of
Oral Arg. 5, and the Secretary has come forward with no
reason why Munson is an inadequate advocate to assert the
charities' rights. The activity sought to be protected is at
the heart of the business relationship between Munson and
its clients, and Munson's interests in challenging the
statute are completely consistent with the First Amendment
interests of the charities it represents. We see no
prudential reason not to allow it to challenge the
statute.
Besides challenging Munson's standing as
a "noncharity" to bring its claim, the Secretary urges that
Munson should not have standing to challenge the statute as
overbroad because it has not demonstrated that the statute's
overbreadth is "substantial." See Broadrick v. Oklahoma, 413
U.S., at 615. The Secretary raises a point of valid concern.
The Court has indicated that application of the overbreadth
doctrine is "strong medicine" that should be invoked only
"as a last resort." Id., at 613. The Secretary's concern,
however, is one that is more properly reserved for the
determination [467 U.S. 947, 959] of Munson's First
Amendment challenge on the merits. The requirement that a
statute be "substantially overbroad" before it will be
struck down on its face is a "standing" question only to the
extent that if the plaintiff does not prevail on the merits
of its facial challenge and cannot demonstrate that, as
applied to it, the statute is unconstitutional, it has no
"standing" to allege that, as applied to others, the statute
might be unconstitutional. See Parker v. Levy, 417 U.S. 733,
760 (1974); United States v. Raines, 362 U.S., at 21. See
generally Monaghan, Overbreadth, 1981 S. Ct. Rev. 1. We
therefore move on to the merits of Munson's First Amendment
claim.
III
The Merits. In Schaumburg v. Citizens for
a Better Environment, supra, the Court struck down a
municipal ordinance that required every charitable
organization, which utilized door-to-door solicitation, to
apply for a permit obtainable only on satisfactory proof
that at least seventy-five per cent of the proceeds of such
solicitations will be used directly for the charitable
purpose of the organization.'" Id., at 624. The question
before us is whether the distinctions between the Schaumburg
ordinance and the Maryland statute are sufficient to render
the statute constitutionally acceptable. To answer that
question, we reexamine the bases for the conclusion the
Court reached in Schaumburg.
A
The Court in Schaumburg determined first
that charitable solicitations are so intertwined with speech
that they are entitled to the protections of the First
Amendment:
"Prior authorities, therefore, clearly
establish that charitable appeals for funds, on the street
or door to door, involve a variety of speech interests -
communication of information, the dissemination and
propagation of views and ideas, and the advocacy of causes -
that are within the protection of the First Amendment.
Soliciting [467 U.S. 947, 960] financial support is
undoubtedly subject to reasonable regulation but the latter
must be undertaken with due regard for the reality that
solicitation is characteristically intertwined with
informative and perhaps persuasive speech seeking support
for particular causes or for particular views on economic,
political, or social issues, and for the reality that
without solicitation the flow of such information and
advocacy would likely cease." Id., at 632.8
Because the percentage limitation
restricted the ways in which charities might engage in
solicitation activity, the Court concluded that it was a
"direct and substantial limitation on protected activity
that cannot be sustained unless it [467 U.S. 947,
961] serves a sufficiently strong, subordinating
interest that the Village is entitled to protect." Id., at
636. In addition, in order to be valid, the limitation would
have to be a "narrowly drawn regulatio[n] designed
to serve [the] interes[t] without
unnecessarily interfering with First Amendment freedoms."
Id., at 637.
Although the Court in Schaumburg
recognized that the Village had legitimate interests in
protecting the public from fraud, crime, and undue
annoyance, it rejected the limitation because it was not a
precisely tailored means of accommodating those interests.
The Village's asserted interests were only peripherally
promoted by the limitation and could be served by measures
less intrusive than a direct prohibition on
solicitation.
In particular, although the Village's
primary interest was in preventing fraud, the Court
concluded that the limitation was simply too imprecise an
instrument to accomplish that purpose. The justification for
the limitation was an assumption that any organization using
more than 25% of its receipts on fundraising, salaries, and
overhead was not charitable, but was a commercial,
for-profit enterprise. Any such enterprise that represented
itself as a charity thus was fraudulent.
The flaw in the Village's assumption, as
the Court recognized, was that there is no necessary
connection between fraud and high solicitation and
administrative costs. A number of other factors may result
in high costs; the most important of these is that charities
often are combining solicitation with dissemination of
information, discussion, and advocacy of public issues, an
activity clearly protected by the First Amendment and as to
which the Village had asserted no legitimate interest in
prohibiting. In light of the fact that the interest in
protecting against fraud can be accommodated by measures
less intrusive than a direct prohibition on solicitation,9
the Court concluded that the limitation was [467 U.S.
947, 962] insufficiently related to the governmental
interests asserted to justify its interference with
protected speech.10
B
Schaumburg left open the primary question
now before this Court - whether the constitutional
deficiencies in a percentage limitation on funds expended in
solicitation are remedied by the possibility of an
administrative waiver of the limitation for a charity that
can demonstrate financial necessity. The Court there
distinguished a case in which a percentage limitation on
solicitation costs had been upheld, see National Foundation
v. Fort Worth, 415 F.2d 41 (CA5 1969), cert. denied, 396
U.S. 1040 (1970), noting that under the ordinance in Fort
Worth, a charity had the opportunity to demonstrate that its
solicitation costs, though high, nevertheless were
reasonable. See 444 U.S., at 635, n. 9.
Section 103D has a provision similar to
that in the Fort Worth ordinance. It directs the Secretary
of State to "issue rules and regulations to permit a
charitable organization to pay or agree to pay for expenses
in connection with a fundraising activity more than 25% of
its total gross income in those instances where the 25%
limitation would effectively prevent the charitable
organization from raising contributions." See n. 2, supra.
Having now considered the question left open in Schaumburg,
however, we conclude that the waiver provision does not save
the statute.
The Court of Appeals concluded that the
exception in 103D was "extremely narrow," being confined to
instances "where the 25% limitation would effectively
prevent the charitable [467 U.S. 947, 963]
organization from raising contributions," 294 Md., at 180,
448 A. 2d, at 946, and of no avail to an organization whose
high fundraising costs were attributable to legitimate
policy decisions about how to use its funds, rather than to
inability to raise funds. Under the Court of Appeals'
interpretation, the Secretary has no discretion to determine
that reasons other than financial necessity warrant a
waiver. The statute does not help the charity whose
solicitation costs are high because it chooses, as was
stipulated here, see App. to Pet. for Cert. 39a, to
disseminate information as a part of its fundraising. Thus,
the organizations that were of primary concern to the Court
in Schaumburg, those whose high costs were due to
"`information dissemination, discussion, and advocacy of
public issues,'"11 444 U.S., at 635, quoting from [467
U.S. 947, 964] Citizens for a Better Environment v.
Schaumburg, 590 F.2d 220, 225 (CA7 1978), remain barred by
the statute from carrying on those protected First Amendment
activities.12
C
The Secretary urges that even though
there may remain charities whose First Amendment activity is
limited by the statute, we should not strike down the
statute on its face because, with the waiver provision, it
no longer is "substantially overbroad." We are not
persuaded.
"Substantial overbreadth" is a criterion
the Court has invoked to avoid striking down a statute on
its face simply because of the possibility that it might be
applied in an unconstitutional manner. It is appropriate in
cases where, despite some possibly impermissible
application, the "`remainder of [467 U.S. 947, 965]
the statute
covers a whole range of easily
identifiable and constitutionally proscribable
conduct
CSC v. Letter Carriers, 413 U.S. 548, 580-581
(1973)." Parker v. Levy, 417 U.S., at 760. See also New York
v. Ferber, 458 U.S. 747, 770, n. 25 (1982). In such a case,
the Court has required a litigant to demonstrate that the
statute "as applied" to him is unconstitutional. Id., at
774.
This is not such a case.13 Here there is
no core of easily identifiable and constitutionally
proscribable conduct that the [467 U.S. 947, 966]
statute prohibits. While there no doubt are organizations
that have high fundraising costs not due to protected First
Amendment activity and that, therefore, should not be heard
to complain that their activities are prohibited, this
statutecannot distinguish those organizations from charities
that have high costs due to protected First Amendment
activities. The flaw in the statute is not simply that it
includes within its sweep some impermissible applications,
but that in all its applications it operates on a
fundamentally mistaken premise that high solicitation costs
are an accurate measure of fraud.14 That the statute in some
of its applications actually prevents the misdirection of
funds from the organization's purported charitable goal is
little more than fortuitous.15 [467 U.S. 947, 967]
It is equally likely that the statute will restrict First
Amendment activity that results in high costs but is itself
a part of the charity's goal or that is simply attributable
to the fact that the charity's cause proves to be unpopular.
On the other hand, if an organization indulges in fraud,
there is nothing in the percentage limitation that prevents
it from misdirecting funds. In either event, the percentage
limitation, though restricting solicitation costs, will have
done nothing to prevent fraud.
Where, as here, a statute imposes a
direct restriction on protected First Amendment activity,16
and where the defect [467 U.S. 947, 968] in the
statute is that the means chosen to accomplish the State's
objectives are too imprecise, so that in all its
applications the statute creates an unnecessary risk of
chilling free speech, the statute is properly subject to
facial attack. Schaumburg, 444 U.S., at 637; First National
Bank of Boston v. Bellotti, 435 U.S. 765, 786 (1978). See
also Central Hudson Gas & Electric Corp. v. Public
Service Comm'n of N. Y., 447 U.S. 557, 565, n. 8 (1980);
City Council of Los Angeles v. Taxpayers for Vincent, 466
U.S. 789, 800, n. 19 (1984) ("[W]here the statute
unquestionably attaches sanctions to protected conduct, the
likelihood that the statute will deter that conduct is
ordinarily sufficiently great to justify an overbreadth
attack," citing Erznoznik v. City of Jacksonville, 422 U.S.
205, 217 (1975)).
The possibility of a waiver may decrease
the number of impermissible applications of the statute, but
it does nothing to remedy the statute's fundamental defect.
We conclude that, regardless of the waiver provision,
Schaumburg requires that the percentage limitation in the
Maryland statute be rejected.
IV
Our conclusion is not altered by the
presence of other distinctions the Secretary urges between
this statute and the ordinance at issue in
Schaumburg.
The Secretary points out, for example,
that 103D does not impose a prior restraint on protected
activities. An organization may register as a charity and
solicit funds without first demonstrating that it satisfies
103D. The statute, it is said, regulates only after the
fact. We are unmoved by the claimed distinction. As the
Court of Appeals noted, several elements of the regulatory
scheme suggest the possibility [467 U.S. 947, 969]
of a "before-the-fact" prohibition on solicitation. Section
103D requires that every contract or agreement between a
professional fundraiser and a charitable organization shall
be filed with the Secretary of State prior to any
solicitation. Under 103F, no solicitation may begin until
the Secretary "shall approve the registration" of a
professional fundraiser counsel or professional solicitor.
And the Secretary is to approve the professional
fundraiser's registration only if she finds that the
application is in conformity with the requirements of the
subtitle as well as the rules and regulations of the
Secretary.
More important, whether the statute
regulates before- or after-the-fact makes little difference
in this case. Whether the charity is prevented from engaging
in First Amendment activity by the lack of a solicitation
permit or by the knowledge that its fundraising activity is
illegal if it cannot satisfy the percentage limitation, the
chill on the protected activity is the same. See Chaplinsky
v. New Hampshire, 315 U.S. 568, 572, n. 3 (1942).
The Secretary also points out that 103D
restricts only fundraising expenses and not the multitude of
other expenses that are not spent directly on the
organization's charitable purpose, and that the charity may
elect whether to be bound by its fundraising percentage for
the prior year or to apply the 25% limitation on a
campaign-by-campaign basis. Those distinctions, however,
mean only that the statute will not apply to as many
charities as did the ordinance in Schaumburg. They do
nothing to alter the fact that significant fundraising
activity protected by the First Amendment is barred by the
percentage limitation.
Finally, the fact that the statute
regulates all charitable fundraising, and not just
door-to-door solicitation, does not remedy the fact that the
statute promotes the State's interest only peripherally. The
distinction made in Schaumburg was between regulation aimed
at fraud and regulation aimed at something else in the hope
that it would sweep fraud in [467 U.S. 947, 970]
during the process. The statute's aim is not improved by the
fact that it fires at a number of targets.
We agree with the Court of Appeals of
Maryland that 103D is unconstitutionally overbroad. The
judgment of that court therefore is affirmed. It is so
ordered.
Footnotes:
[Footnote 1] Effective July 1, 1984, the
Maryland Legislature has revised its charitable
organizations law. See 1984 Md. Laws, ch. 787. No changes
are made in 103D, but changes are made in the definitional
section and in the registration requirement imposed on
professional fundraisers. Those changes do not affect this
case.
[Footnote 2] Section 103D reads in full:
(a) "A charitable organization other than a charitable
salvage organization may not pay or agree to pay as expenses
in connection with any fundraising activity a total amount
in excess of 25 percent of the total gross income raised or
received by reason of the fund-raising activity. The
Secretary of State shall, by rule or regulation in
accordance with the `standard of accounting and fiscal
reporting for voluntary health and welfare organizations'
provide for the reporting of actual cost, and of allocation
of expenses, of a charitable organization into those which
are in connection with a fund-raising activity and those
which are not. The Secretary of State shall issue rules and
regulations to permit a charitable organization to pay
[467 U.S. 947, 951] or agree to pay for expenses in
connection with a fund-raising activity more than 25% of its
total gross income in those instances where the 25%
limitation would effectively prevent the charitable
organization from raising contributions. The 25% limitation
in this subsection shall not apply to compensation or
expenses paid by a charitable organization to a professional
fund-raiser counsel for conducting feasibility studies for
the purpose of determining whether or not the charitable
organization should undertake a fund-raising activity, such
compensation or expenses paid for feasibility studies or
preliminary planning not being considered to be expenses
paid in connection with a fund-raising activity".
(b) "For purposes of this section, the total gross income
raised or received shall be adjusted so as not to include
contributions received equal to the actual cost to the
charitable organization of (1) goods, food, entertainment,
or drink sold or provided to the public, nor should these
costs be included as fund-raising costs; (2) the actual
postage paid to the United States Postal Service and
printing expense in connection with the soliciting of
contributions, nor should these costs be included as
fund-raising costs".
(c) "Every contract or agreement between a professional
fund-raiser counsel or a professional solicitor and a
charitable organization shall be in writing, and a copy of
it shall be filed with the Secretary of State within ten
days after it is entered into and prior to any
solicitations."
Other related Maryland statutes require that a charity
intending to solicit contributions within or without the
State file a registration statement with the Secretary of
State providing information about its purpose and its
finances, 103B, and that professional fundraisers register
with and be approved by the Secretary, 103F. Section 103L(a)
subjects both the charitable organization and the
professional fundraiser to criminal liability for wilfully
violating the statutory requirements.
[Footnote 3] The court also rejected the Secretary's
claim that Munson could not question the validity of the
statute because there had been no final administrative
determination that the statute was applicable to Munson. The
court concluded that Munson did not need to exhaust
administrative remedies in order to attack the statute on
its face. 294 Md., at 171, 448 A. 2d, at 941. The Secretary
does not challenge that determination here.
[Footnote 4] The Court of Appeals concluded that
Munson had suffered sufficient injury as a result of 103D to
have standing to challenge the statute. The Secretary does
not dispute that determination. Nevertheless, because the
"case" or "controversy" requirement is jurisdictional here,
we must satisfy ourselves that the requirements of Art. III
are met. Doremus v. Board of Education, 342 U.S. 429, 434
(1952).
[Footnote 5] As the various formulations of the
prudential-standing limitations illustrate, the second
factor counseling against allowing a litigant to assert the
rights of third parties is not completely separable from
Art. III's requirement that a plaintiff have a "sufficiently
concrete interest in the outcome of [the] suit to
make it a case or controversy." Singleton v. Wulff, 428 U.S.
106, 112 (1976). The prudential limitations add to the
constitutional minima a healthy concern that if the claim is
brought by someone other than one at whom the constitutional
protection is aimed, the claim not be an abstract,
generalized grievance that the courts are neither well
equipped nor well advised to adjudicate. See Warth v.
Seldin, 422 U.S. 490, 500 (1975); Schlesinger v. Reservists
To Stop the War, 418 U.S. 208, 217-222 (1974).
[Footnote 6] In the Circuit Court, Munson claimed
that 103D intruded upon its own First Amendment rights. Now,
however, it focuses its argument solely on its ability to
assert the First Amendment rights of Maryland charities.
[467 U.S. 947, 956] Because of our disposition of
the Secretary's standing challenge, we have no occasion to
address the extent to which Munson might assert its own
First Amendment right to disseminate information as part of
a charitable solicitation. It is clear that the fact that
Munson is paid to disseminate information does not in itself
render its activity unprotected. See New York Times Co. v.
Sullivan, 376 U.S. 254, 266 (1964).
[Footnote 7] See also Bates v. State Bar of Arizona,
433 U.S. 350, 380 (1977) ("The use of overbreadth analysis
reflects the conclusion that the possible harm to society
from allowing unprotected speech to go unpunished is
outweighed by the possibility that protected speech will be
muted"); Eisenstadt v. Baird, 405 U.S. 438, 445 (1972) (in
determining whether a litigant should be able to assert
third-party rights, a crucial factor is "the impact of the
litigation on the third-party interests"); id., at 445, n. 5
("Indeed, in First Amendment cases we have relaxed our rules
of standing without regard to the relationship between the
litigant and those whose rights he seeks to assert precisely
because application of those rules would have an
intolerable, inhibitory effect on freedom of speech. E. g.,
Thornhill v. Alabama, 310 U.S. 88, 97-98 (1940). See United
States v. Raines, 362 U.S. 17, 22 (1960)").
[Footnote 8] The types of speech regulated by the
Maryland statute clearly encompass the types of speech
determined in Schaumburg to be entitled to First Amendment
protection. The statute defines "solicit" as meaning "to
request, directly or indirectly, money, credit, property, a
credit card contribution... or other financial assistance in
any form on the plea or representation that the money,
credit, property, a credit card contribution . . . or other
financial assistance will be used for a charitable purpose.
It includes:
"(1) An oral or written request;
"(2) An announcement to the news media for further
dissemination by it of an appeal or campaign seeking
contributions from the public for one or more charitable
purposes.
"(3) The distribution, circulation, posting, or publishing
of any handbill, written advertisement, or other publication
which, directly or by implication, seeks contributions by
the public for one or more charitable purposes; and
"(4) The sale of, or offer or attempt to sell, any
advertisement, advertising space, book card, tag, coupon,
device, magazine, membership, subscription, ticket,
admission, chance, merchandise, or other tangible item in
connection with which (i) an appeal is made for
contributions to one or more charitable purposes, or (ii)
the name of a charitable organization is used or referred to
as an inducement to make such a purchase, or (iii) a
statement is made that the whole or any part of the proceeds
from the sale is to be used for one or more charitable
purposes. A solicitation is deemed to have taken place when
the request is made, whether or not the person making it
actually receives a contribution." 103A(i).
[Footnote 9] The Court noted, for instance, that the
Village could punish fraud directly and could require
disclosure of the finances of a charitable [467 U.S.
947, 962] organization so that a member of the public
could make an informed decision about whether to contribute.
Schaumburg v. Citizens for a Better Environment, 444 U.S.,
at 637-638.
[Footnote 10] The Court also found little connection
between the percentage limitation and the protection of
public safety or residential privacy. Both goals were better
furthered by provisions addressed directly to the asserted
interest - such as a prohibition on the use of convicted
felons as solicitors and a provision allowing homeowners to
post signs barring solicitors from their property. Id., at
638-639.
[Footnote 11] The regulations make clear that public
education activity is included in the solicitation costs
regulated by the 25% limitation. Section 01.02.04.04A(3) of
the Code of Maryland Regulations (1983) provides: "The
expenses of public education materials and activities, which
include an appeal, specific or implied, for financial
support, shall be fully allocated to fund-raising
expenses."
In light of the clarity of the regulation
and the absence of any indication by the State that the
regulation is not consistentwith the statute, we can only
wonder at the basis for the dissent's conclusion that
103D(a) appears to call for a pro rata allocation between
advocacy and fundraising expenses, with advocacy and
education expenses exempted from the statute's reach. The
statute itself gives no indication that such an exemption is
envisioned. It imposes a cap on "expenses in connection with
any fund-raising activity" and includes within that activity
"[t]he distribution, circulation, posting, or
publishing of any handbill, written advertisement, or other
publication which, directly or by implication, seeks
contributions by the public for one or more charitable
purposes." See nn. 2 and 8, supra. And the State's own
highest court, interpreting the reach of 103D, apparently
found no basis for a presumption that advocacy and education
expenses would be exempted. In any event, while the notion
of a pro rata allocation sounds appealing, it ignores the
"reality," recognized by the Court in Schaumburg, that
solicitation is intertwined with protected speech. See 444
U.S., at 632.
Written materials, for example, no doubt serve both
purposes. A public official would have to be charged with
the responsibility of determining how expenses should be
allocated, which publications should be licensed, and which
restricted by the statute. See n. 12, infra.
[Footnote 12] The Secretary disagrees with the Court
of Appeals' interpretation of the scope of her discretion.
She urges that she has discretion to grant a waiver
"whenever necessary" and that she has done so "in an
extremely liberal manner, with special care shown for the
rights of advocacy groups." Brief for Petitioner 33. We have
no reason to second-guess the Court of Appeals'
interpretation of its own state law. But even if the
Secretary were correct, and the waiver provision were broad
enough to allow for exemptions "whenever necessary," we
would find the statute only slightly less troubling. Our
cases make clear that a statute that requires such a
"license" for the dissemination of ideas is inherently
suspect. By placing discretion in the hands of an official
to grant or deny a license, such a statute creates a threat
of censorship that by its very existence chills free speech.
See Thornhill v. Alabama, 310 U.S. 88, 97 (1940); Schneider
v. State, 308 U.S. 147 (1939); Lovell v. Griffin, 303 U.S.
444, 451 (1938). See also Schaumburg, 444 U.S., at 640-643
(dissenting opinion). Under the Secretary's interpretation,
charities whose First Amendment rights are abridged by the
fundraising limitation simply would have traded a direct
prohibition on their activity for a licensing scheme that,
if it is available to them at all, is available only at the
unguided discretion of the Secretary of State. Particularly
where the percentage limitation itself is so poorly suited
to accomplishing the State's goal, and where there are
alternative means to serve the same purpose, there is little
justification for straining to salvage the statute by
invoking the possibility of official dispensation to engage
in protected activity.
[Footnote 13] The dissenters suggest that striking
down the Maryland statute on its face is a radical departure
from the Court's practice and that it is done only in
overbreadth cases. Post, at 977-978. But as the Court
recognized earlier this Term, legislation repeatedly has
been struck down "on its face" because it was apparent that
any application of the legislation "would create an
unacceptable risk of the suppression of ideas." City Council
of Los Angeles v. Taxpayers for Vincent, 466 U.S. 789, 797
(1984). See, e. g., Stromberg v. California, 283 U.S. 359
(1931); Lovell v. Griffin, 303 U.S. 444 (1938). See also New
York v. Ferber, 458 U.S. 747, 303 U.S. 444 (1938). See also
New York v. Ferber, 458 U.S. 747, 768, n. 21 (1982);
Freedman v. Maryland, 380 U.S. 51 (1965); Teitel Film Corp
v. Cusack, 390 U.S. 139 (1968); Saia v. New York, 334 U.S.
558 (1948); Cantwell v. Connecticut, 310 U.S. 296 (1940);
Schneider v. State, 308 U.S. 147 (1939); Hague v. CIO, 307
U.S. 496, 516 (1939) (plurality opinion). In those cases a
litigant has claimed that his own activity was protected by
the First Amendment, and the Court has not limited itself to
refining the law by preventing improper applications on a
case-by-case basis. Facial challenges also have been upheld
in contexts other than the First Amendment. See, e. g.,
Kolender v. Lawson, 461 U.S. 352 (1983); Smith v. Goguen,
415 U.S. 566 (1974) (vagueness challenge to criminal
statute); Sniadach v. Family Finance Corp., 395 U.S. 337
(1969)(due process challenge to garnishment statute);
Lanzetta v. New Jersey, 306 U.S. 451 (1939) (vagueness
challenge to criminal statute). In addition, though the
dissenters are loath to admit it, the State's highest court
has had an opportunity to construe the statute to avoid
constitutional infirmities and has been unable to do so. Cf.
Erznoznik v. City of Jacksonville, 422 U.S. 205, 216
(1975).
The dissenters appear to overlook the fact that
"overbreadth" is not used only to describe the doctrine that
allows a litigant whose own conduct is unprotected to assert
the rights of third parties to challenge a statute, even
though "as applied" to him the statute would be
constitutional. E. g., New York v. Ferber, supra.
"Overbreadth" has also been used to describe a challenge to
a statute that in all its applications directly restricts
[467 U.S. 947, 966] protected First Amendment
activity and does not employ means narrowly tailored to
serve a compelling governmental interest. Schaumburg, 444
U.S., at 637-639; First National Bank of Boston v. Bellotti,
435 U.S. 765, 786 (1978); Zwickler v. Koota, 389 U.S. 241,
250 (1967). Cf. City Council of Los Angeles v. Taxpayers for
Vincent, supra (recognizing the validity of a facial
challenge but suggesting that it should not be called
"overbreadth"); Central Hudson Gas & Electric Corp v.
Public Service Comm'n of N. Y., 447 U.S. 557, 565, n. 8
(1980) (same).
It was on the basis of the latter failing that the Court in
Schaumburg struck down the Village ordinance as
unconstitutional. Whether that challenge should be called
"overbreadth" or simply a "facial" challenge, the point is
that there is no reason to limit challenges to case-by-case
"as applied" challenges when the statute on its face and
therefore in all its applications falls short of
constitutional demands. The dissenters' efforts to chip away
at the possibly impermissible applications of the statute do
nothing to address the failing that the Schaumburg Court
found dispositive - that a percentage limitation on
fundraising unnecessarily restricts protected First
Amendment activity.
[Footnote 14] The state legislature's announced
purpose in enacting the 1976 revision of the charitable
organization provisions of Md. Ann. Code, Art. 41, was to
"assure that contributions will be used to benefit the
intended purpose." Preamble to 1976 Md. Laws, ch. 679. The
State's justification therefore may be read as an interest
in preventing mismanagement as well as fraud. The flaw in
the statute, however, remains. The percentage limitation is
too imprecise a tool to achieve that purpose.
[Footnote 15] The Secretary's own records illustrate
the tenuous connection between low fundraising costs and a
valid charitable endeavor. Between October 14, 1980, and
June 29, 1982, the Secretary apparently granted 13 of 16
applications for exemption from the 25% limitation. The
lowest one contemplated fundraising costs of 48% of
receipts. Five were between 70% and 77.1%. Another five were
between 80% and 85%. Five of the applications granted were
from lodges of the FOP; their solicitors were other than
Munson. Exhibits to Brief for Petitioner A.6.
[Footnote 16] The dissenters' suggestion that,
because the Maryland statute regulates only the economic
relationship between charities and professional fundraisers,
it is not a direct restriction on the charities' First
Amendment activity is perplexing. Post, at 978-980. Any
restriction on the amount of money a charity can pay to a
third party as a fundraising expense could be labeled
"economic regulation." The fact that paid solicitors are
used to disseminate information did not alter the Schaumburg
Court's conclusion that a limitation on the amount a charity
can spend in fundraising activity is a direct restriction on
the charity's First Amendment rights. See 444 U.S., at
635-636. Whatever the State's purpose in enacting the
statute, the fact remains that the percentage limitation is
a direct restriction on the amount of money a charity can
spend on fundraising activity.
For similar reasons, it is the dissent
that "simply misses the point" when it urges that there is
an element of "fraud" in a professional fundraiser's
soliciting money for a charity if a high proportion of those
funds are expended in fundraising. Post, at 980, and n. 2.
The point of the Schaumburg Court's conclusion that the
percentage limitation was not an accurate measure of fraud
was that the charity's "purpose" may include public
education. It is no more fraudulent for a charity to pay a
professional fundraiser to engage in legitimate public
educational activity than it is for the [467 U.S. 947,
968] charity to engage in that activity itself. And
concerns about unscrupulous professional fundraisers, like
concerns about fraudulent charities, can and are
accommodated directly, through disclosure and registration
requirements and penalties for fraudulent conduct.
JUSTICE STEVENS, concurring.
With increasing frequency this Court
seems prone to disregard the important distinctions between
cases that come to us from the highest court of a State and
those that arise in the federal system. The discussion of
standing by the majority and the dissent illustrates the
point.
What may loosely be described as the
"standing" issue in this case actually encompasses three
distinct question: (1) Is the dispute between the Secretary
of State of Maryland and Munson Co. a "case" or
"controversy" within the meaning of Art. III of the United
States Constitution; (2) are there "prudential reasons" for
refusing to allow Munson to base its claim for relief on the
fact that the statute is unconstitutional as it applies to
the company's potential clients; and (3) is this a proper
case for overbreadth analysis? The fact that this case comes
to us from the Court of Appeals of Maryland is of critical
significance with respect to the first two issues, but is of
less importance with respect to the third. The three
separate questions, however, clearly merit separate
discussion.
I
Respondent unquestionably has "standing"
in a jurisdictional sense. The Court appears to be unanimous
on the "case" or "controversy" issue.1 The
case-or-controversy requirement, of course, relates only to
the jurisdiction of this [467 U.S. 947, 971] Court
and has no bearing on the jurisdiction of the Maryland
courts. Nothing in Art. III of the Federal
Constitutionprevents the Maryland Court of Appeals from
rendering an advisory opinion concerning the
constitutionality of Maryland legislation if it considers it
appropriate to do so.2 Thus, the decision of the Maryland
Court of Appeals that it had jurisdiction to decide this
case is one we have no power to review.
If we were persuaded that there is no
Art. III "standing" in this case, we would have a duty to
dismiss the writ of certiorari and allow the judgment of the
Maryland Court of Appeals to remain in effect. No Member of
the Court, however, argues that we must follow that course.
Since every Member of the Court has expressed an opinion
concerning the constitutionality of the Maryland law, it is
difficult to perceive the relevance of the fact that the
Framers of Art. III of the Federal Constitution elected not
to give the federal judiciary a "roving commission" to
render advisory opinions. Post, at 976.3 In all events,
there is little real dispute concerning standing in the
jurisdictional sense. [467 U.S. 947, 972]
II
Whether respondent has "standing" to
assert the constitutional rights of its potential customers
is not a jurisdictional issue. As the Court correctly notes,
in addition to the constitutional constraints on this
Court's jurisdiction, this Court has "developed, for its own
governance in the cases confessedly within its jurisdiction,
a series of rules under which it has avoided passing upon a
large part of all the constitutional questions pressed upon
it for decision." Ashwander v. TVA, 297 U.S. 288, 346 (1936)
(Brandeis, J., concurring). We may require federal courts to
follow those rules, but we have no power to impose them on
state courts.
Thus, the rule that a litigant generally
must assert his own legal rights and interests, and cannot
rest his claim to relief on the legal rights and interests
of third parties, see ante, at 955, post, at 977, is a judge
made rule. Rules of that kind that we fashion for our own
governance, or indeed in the exercise of our supervisory
powers over other federal judges, are not necessarily
applicable to the work of state judges. Those judges may, of
course, elect to follow our example, but there is no reason
why they must do so. Instead, I believe they are free to
adopt prudential standing rules that differ from ours - and
surely they may allow more latitude for third-party attacks
on state laws than we might consider appropriate.
In this case, even if we might deny a
fundraiser prudential standing to attack a statute on the
basis of its impact on a charity in a case arising in a
declaratory judgment action in federal court, the state
court was perfectly willing to hear such a challenge to the
Maryland statute. If we should conclude in this case that we
are unwilling to listen to Munson's arguments about the
impact of the Maryland statute on the rights of its clients,
it surely does not follow that we can deny the Maryland
Court of Appeals the power to decide that it will listen to
those arguments. Thus, it seems quite clear to me that our
analysis of the prudential standing issue should serve only
the function of determining whether this case is [467
U.S. 947, 973] one that is appropriate for the exercise
of our discretionary certiorari jurisdiction.4 If, as the
dissent implies,5 Munson is not a proper party to advance a
constitutional challenge to a statute of this type, then
surely we should not review a judgment of the state court
that was based on that party's arguments. In that event, the
proper course would be a dismissal of the writ as having
been improvidently granted. In my opinion, while the writ of
certiorari should have never issued in this case, there are
sufficient reasons for finding that Munson's "third-party"
standing is proper as a prudential matter that the writ does
not need to be dismissed as improvidently granted. Whether a
particular litigant has a sufficiently significant stake in
the outcome of a constitutional challenge to a statute based
on its application to individuals not before the court to
render him an appropriate party to make the challenge on
their behalf is a question of the degree of his interest and
the nature of the relationship between him and the
individuals whose rights are allegedly infringed.
Munson has been threatened with criminal
sanctions under the statute, but Munson does not contend
that its own First Amendment rights are violated by that
threat. The fact of that threat is relevant, however, to
assessing whether Munson is a proper party to litigate the
constitutional question [467 U.S. 947, 974] for
prudential purposes. The fact that Munson has been actually,
but indirectly, injured in fact by the effect of the statute
on its potential clients is not enough, standing alone, to
permit it to litigate the constitutionality of the statute
in this Court. The Court properly recognizes that more is
required and pinpoints the crucial facts that the "activity
sought to be protected is at the heart of the business
relationship between Munson and its clients, and Munson's
interests in challenging the statute are completely
consistent with the First Amendment interests of the
charities it represents." Ante, at 958. Those factors are
sufficient to assure us that Munson will vigorously litigate
the question in this Court, thus providing this Court with
the basis for informed decisionmaking. That is the primary
prudential question for this Court in a case coming to us
from a state court, which may permit third-party actions for
declaratory relief that federal district courts might not
necessarily entertain.
III
Once it is determined that Munson may
assert the First Amendment rights of its clients, it follows
that Munson may challenge the statute on any ground that
they might assert. Munson does not argue that the statute
would be unconstitutional as applied to the Fraternal Order
of Police, even though on this record a successful challenge
on that ground would appear to redress Munson's injury.
Instead, it attacks the statute on overbreadth grounds. The
fact that this case comes to us from a state court is
relevant to our consideration of the merits of the
overbreadth challenge to some extent as well. We need not
construe the statute for ourselves, compare post, at 984,
and n. 5; the state court has authoritatively done so. That
construction greatly aids an informed analysis of the merits
of the First Amendment overbreadth question. The state
court's judgment that the illegitimate sweep of the state
statute is substantial in relationship to its legitimate
applications surely merits serious [467 U.S. 947,
975] consideration by this Court to the extent that
issue turns on a quantitative assessment of future
applications of the statute.
In summary, while I am persuaded that
this Court should have declined to exercise its certiorari
jurisdiction in this case - surely it had no business
granting certiorari to review the determination that "Munson
had standing to challenge the validity of 103D", see ante,
at 954 - I concur in the Court's opinion.
[Footnote 1] Since the dissent does
not argue that Munson lacks Art. III standing, the ode to
Art. III in the dissenting opinion would seem to be totally
gratuitous in what the dissent apparently agrees is a "case
or controversy." The dissent does not express the opinion
that the writ of certiorari should be dismissed for want of
jurisdiction.
[Footnote 2] Indeed, the Maryland Court of Appeals'
discussion of standing in this case indicates it is unclear
whether the issue of standing may be waived under the
Maryland practice, see 294 Md. 160, 168-170, 448 A. 2d 935,
940-941 (1982), and hence suggests that the Maryland courts
may be willing to render advisory opinions.
[Footnote 3] At the outset of the dissenting opinion
we are reminded that federal courts have no "roving
commission" to survey the statute books and pass judgments
on laws prematurely, and that "[m]usings" regarding
the constitutionality of "hypothetical" statutes "may be
fitting for the classroom and the statehouse, but they are
neither wise nor permissible in the courtroom." Post, at
976. While there is a case or controversy concerning the
validity of 103D, which makes it a crime for a charity to
pay more than 25% of the receipts from a fundraising
activity on expenses, there is no case or controversy
concerning a Maryland statute which "regulated only the
rates charged by professional fundraisers to charitable
organizations," post, at 981 - no such Maryland statute
exists. The dissent, ignoring the wisdom espoused early in
its opinion, provides us with an advisory opinion on such a
hypothetical statute: "The statute would be clearly
constitutional." Ibid.
[Footnote 4] It is revealing that the dissent cites
a major abstention case, Younger v. Harris, 401 U.S. 37
(1971), at the outset of its opinion discussing judicial
review. Post, at 976. The hodgepodge of concerns expressed
by the dissent with respect to entertaining this case were
sound reasons for this Court to abstain from exercising our
discretionary certiorari jurisdiction in this case coming
from a state court, but those concerns simply do not defeat
our jurisdiction to hear it nor respondent's standing to
litigate it.
[Footnote 5] The dissent does not argue that the
writ should be dismissed as improvidently granted on the
ground that this case is an unwise vehicle for adjudicating
the constitutional question presented. Cf. New York v.
Uplinger, ante, at 249 (STEVENS, J., concurring). Indeed,
the dissent is perfectly willing to adjudicate the
constitutionality of the statute and is quite confident that
it does not violate the First Amendment.
JUSTICE REHNQUIST, with whom THE CHIEF
JUSTICE, JUSTICE POWELL, and JUSTICE O'CONNOR join,
dissenting.
Four Terms ago, the Court struck down an
ordinance of the Village of Schaumburg, Illinois, which
prohibited "the solicitation of contributions by charitable
organizations that do not use at least 75 percent of their
receipts for `charitable purposes,' those purposes being
defined to exclude solicitation expenses, salaries,
overhead, and other administrative expenses." Schaumburg v.
Citizens for a Better Environment, 444 U.S. 620, 622 (1980).
Today, on the authority of that decision, the Court strikes
down a markedly different Maryland statute, whose primary
and legitimate effect is to prohibit professional
fundraisers from charging charities a fee of more than 25%
of the amount raised. The Court, invoking the doctrine of
"overbreadth," reaches this result not at the behest of any
affected charity, but at the behest of a professional
fundraising organization. Believing that in this case the
overbreadth doctrine is not merely "strong medicine,"
Broadrick v. Oklahoma, 413 U.S. 601, 613 (1973), but "bad
medicine," I dissent.
Recently, this Court reaffirmed its
commitment to "[t]he traditional rule" that, except
in the rarest circumstances, "a person to whom a statute may
constitutionally be applied may not challenge that statute
on the ground that it may conceivably be applied
unconstitutionally to others in situations not before the
Court." New York v. Ferber, 458 U.S. 747, [467 U.S. 947,
976] 767 (1982).1 This commitment is in keeping with the
fact that the courts in our federal system do not have a
roving commission "to survey the statute books and pass
judgment on laws before the courts are called upon to
enforce them," Younger v. Harris, 401 U.S. 37, 52 (1971).
The Constitutional Convention specifically rejected a
proposal to have Members of the Supreme Court render advice
concerning pending legislation. See 1 M. Farrand, Records of
the Federal Convention of 1787, p. 21 (1911). And through
the "case or controversy" requirement of Art. III, all
federal courts are restricted to the resolution of concrete
disputes between the parties before them. Musings as to
possible applications of a statute to third parties in
hypothetical situations may be fitting for the classroom and
the statehouse, but they are neither wise nor permissible in
the courtroom.
The very power of the judiciary to
declare a law unconstitutional depends upon a
"flesh-and-blood" dispute in which the application of the
law comes into conflict with the superior authority of the
Constitution. As Chief Justice Marshall explained in Marbury
v. Madison, 1 Cranch 137, 178 (1803): "So if a law be in
opposition to the constitution; if both the law and the
constitution apply to a particular case, so that the court
must either decide that case conformably to the law,
disregarding the constitution; or conformably to the
constitution, disregarding the law; the court must determine
which of these conflicting rules governs the case. This
is of the very essence of judicial duty.
The crucial corollary of this
justification for judicial review is the principle that
constitutional rights are personal and [467 U.S. 947,
977] may not be asserted vicariously. McGowan v.
Maryland, 366 U.S. 420, 429-430 (1961). When a litigant
challenges the constitutionality of a statute, he challenges
the statute's application to him. He claims, for example,
that his activities, which the statute seeks to regulate,
are protected by the First Amendment. If he prevails, the
Court invalidates the statute, not in toto, but only as
applied to those activities. The law is refined by
preventing improper applications on a case-by-case basis. In
the meantime, the interests underlying the law can still be
served by its enforcement within constitutional
bounds.
A successful overbreadth challenge, on
the other hand, suspends enforcement of a statute entirely.
The interests underlying the law, however substantial, are
simply negated until the statute is either rewritten by the
legislature or "reinterpreted" by an authorized court to
serve those interests more narrowly. The litigant is
permitted to raise the rights of third parties not before
the court in order to forestall even legitimate applications
of the law.
The advantages of the first approach are
obvious. It is less intrusive on the legislative prerogative
and less disruptive of state policy to limit the permitted
reach of a statute only on a case-by-case basis. Such
restraint also allows state courts the opportunity to
construe a law to avoid constitutional infirmities. New York
v. Ferber, supra, at 768. Finally, the decision itself is
likely to be more sound when based on data relevant and
adequate to an informed judgment. The facts of the case
focus and give meaning to the otherwise abstract and
amorphous issues the court must decide. "Facts and facts
again are decisive." Frankfurter & Landis, A Note on
Advisory Opinions, 37 Harv. L. Rev. 1002, 1005
(1924).
One might as a matter of original inquiry
question whether an overbreadth challenge should ever be
allowed, given that the Declaratory Judgment Act and the
availability of preliminary injunctive relief will usually
permit a litigant to discover [467 U.S. 947, 978]
the scope of constitutional protection afforded his activity
without subjecting himself to criminal prosecution. Be that
as it may, however, our cases at least indicate that the
doctrine is to be used sparingly. "[W]e have
recognized that the overbreadth doctrine is `strong
medicine' and have employed it with hesitation, and then
`only as a last resort.'" New York v. Ferber, supra, at 769
(quoting Broadrick v. Oklahoma, 413 U.S., at 613). We have
insisted that the overbreadth of a statute be "substantial"
in relation to its legitimate sweep before the statute will
be invalidated on its face. "[P]articularly where
conduct and not merely speech is involved," Broadrick,
supra, at 615, we are hesitant to paralyze the legitimate
enforcement efforts of the States based solely on
predictions as to potential chill.
These considerations apply with special
force in this case. The challenged Maryland statute
functions primarily as an economic regulation setting a
limit on the fees charged by professional fundraisers. The
purpose and effect of the statute are, therefore, altogether
different from those of the Village ordinance invalidated in
Schaumburg, supra. Schaumburg's ordinance provided that
"[e]very charitable organization, which solicits or
intends to solicit contributions from persons in the village
by door-to-door solicitation or the use of public streets
and public ways, shall prior to such solicitation apply for
a permit." Schaumburg Village Code, Ch. 22, Art. III, 22-20
(1975). The application for that permit was required to
contain "[s]atisfactory proof that at least
seventy-five per cent of the proceeds of such solicitations
will be used directly for the charitable purpose of the
organization." 22-20(g). Excluded from the definition of
"charitable purpose" were all solicitation expenses,
salaries, overhead, and other administrative expenses.
Ibid.
Thus, Schaumburg's ordinance was
primarily directed at controlling the nature and internal
workings of charitable organizations seeking to solicit in
the Village, and its prime failing was that it effectively
prohibited any solicitation by "organizations that are
primarily engaged in research, advocacy, [467 U.S. 947,
979] or public education and that use their own paid
staff to carry out those functions as well as to solicit
financial support." Schaumburg, 444 U.S., at 636. Such
advocacy organizations are likely to have high
administrative expenses which would make it impossible for
them to qualify for a permit.
Maryland's statute, on the other hand, is
primarily directed at controlling the external, economic
relations between charities and professional fundraisers.
Such fundraisers are required by 103F to register with the
Secretary, furnish certain information, pay an annual fee,
file a bond and, most important of all, comply with the
requirements of the subtitle, including 103D. Section 103D
provides in relevant part:
(a) "A charitable
organization
may not pay or agree to pay as expenses
in connection with any fundraising activity a total amount
in excess of 25 percent of the total gross income raised or
received by reason of the fund-raising
activity
"
As to Munson and other professional
fundraisers who are not themselves engaged in speech
activities, 103D, read in conjunction with 103F, is merely
an economic regulation controlling the fees the firm is
permitted to charge. A similar regulation governing, for
example, the fees charged by an employment agency would be
judged and approved under the minimum rationality standard
traditionally applied to economic regulations. See, e. g.,
Ohralik v. Ohio State Bar Assn., 436 U.S. 447, 460 (1978);
Williamson v. Lee Optical Co., 348 U.S. 483 (1955). Of
course, a ceiling on the fees charged by professional
fundraisers may have an incidental and indirect impact on
protected expression - as would, for example, a ceiling
placed on the fees charged by literary agents - in that
marginal producers could be forced out of the market. In
other words, price controls might tend to make these
services less available, much as rent control is thought to
make rental housing less available. But such an indirect
[467 U.S. 947, 980] and incidental impact on
expression is not sufficient to subject such regulation to
strict First Amendment scrutiny. Otherwise, national forest
legislation would be equally suspect as tending to raise the
price and limit the quantity of paper.
Even if limitations on the fees charged
by professional fundraisers were subjected to heightened
scrutiny, however, those limitations serve a number of
legitimate and substantial governmental interests. They
insure that funds solicited from the public for a charitable
purpose will not be excessively diverted to private
pecuniary gain. In the process, they encourage the public to
give by allowing the public to give with confidence that
money designed for a charity will be spent on charitable
purposes. The legislature could conclude that fees charged
by professional fundraisers must be kept within moderate
limits to coincide with the contributors' expectations that
their contributions will go primarily to the charitable
purpose. There is an element of "fraud" in soliciting money
"for" a charity when in reality that charity will see only a
small fraction of the funds collected.2 But even if a
fundraiser were to fully disclose to every donor that half
of the money collected would be used for "expenses," so that
there could be no question of "fraud" in the common-law
sense of that word, the State's interest is not at an end.
The statute, as the Court concedes, is also directed against
the incurring of excessive costs in charitable solicitation
even where the costs are fully disclosed to both potential
donors and the charity. Such a law protects the charities
themselves from being overcharged by unscrupulous
professional fundraisers. [467 U.S. 947, 981]
The Court, therefore, is simply mistaken
when it claims that "there is no core of easily identifiable
and constitutionally proscribable conduct that the statute
prohibits." Ante, at 965-966. The rates charged by
professional fundraisers are in fact both "easily
identifiable" and "constitutionally proscribable." If
Maryland's statute regulated only the rates charged by
professional fundraisers to charitable organizations, this
would be an easy case. The statute would be clearly
constitutional.
But of course the statute also applies to
solicitation expenses other than those spent on professional
fundraisers. To that extent, therefore, the statute directly
regulates the solicitation activities of charities and is
subject to more intense scrutiny. Schaumburg, supra, at 632.
Even as applied directly to charities, however, the statute
serves legitimate objectives insofar as it regulates
fundraising costs not attributable to public education or
advocacy. Again, donor confidence is enhanced by such a
regulation, and the intended objects of the public's bounty
are benefited. The real question before the Court, then, is
whether the overbreadth of the statute - the extent to which
it might infringe on constitutionally protected expression -
is substantial judged in relation to the statute's plainly
legitimate sweep. Broadrick v. Oklahoma, 413 U.S., at
615.
The Court today echoes the concern of
Schaumburg that some charities will incur fundraising costs
higher than the 25% limitation not because the costs are
essential to fundraising, but because the charity seeks to
raise funds in a manner that serves other educational and
advocacy goals. See ante, at 963-964. Unlike Schaumburg,
however, it is not at all clear that the Court's concern is
well founded in this case. In baldly claiming that advocacy
organizations "remain barred by the statute from carrying on
those protected First Amendment activities," ante, at 964,
the Court simply ignores or slights some crucial differences
between this statute and the ordinance at issue in
Schaumburg. [467 U.S. 947, 982]
First of all, administrative and overhead
costs that are not attributable to fundraising are not
included in the 25% calculation of 103D(a). Thus, the
salaries of researchers, policymakers and technical support
staff, as well as general overhead expenses, do not count as
fundraising costs. "[O]rganizations that spend large
amounts on salaries and administrative expenses,"
Schaumburg, 444 U.S., at 638, will therefore be largely
unaffected by the statute. To take but one obviously
pertinent example, Citizens for a Better Environment, the
plaintiff in Schaumburg, reportedly spent 23.3% of its
income on fundraising in 1975 and 21.5% on administration.
In 1976, these figures were 23.3% and 16.5%, respectively.
Id., at 626. Thus, although that organization was prohibited
from soliciting door-to-door by the Village ordinance in
Schaumburg, it would be readily accommodated by Maryland's
more carefully drawn statute.
Second, 103D(b) specifically excludes
from the definition of fundraising costs many of the costs
associated with combined advocacy and fundraising
activities. The section provides:
(b) "For purposes of this section,
the total gross income raised or received shall be adjusted
so as not to include contributions received equal to the
actual cost to the charitable organization of (1) goods,
food, entertainment, or drink sold or provided to the
public, nor should these costs be included as fund-raising
costs; (2) the actual postage paid to the United States
Postal Service and printing expense in connection with the
soliciting of contributions, nor should these costs be
included as fund-raising costs."
Thus, unlike the ordinance in Schaumburg,
the costs of receptions, picnics and other social events at
which advocacy organizations seek converts are not included
in the fundraising calculus. Nor are costs associated with
printing and mailing advocacy literature. Again, the statute
is more [467 U.S. 947, 983] carefully designed to
accommodate the protected expression of such organizations.
Sections 103D(a) and (b) together largely eliminate the
concerns of Schaumburg.
Third, 103D(a) directs the Secretary to
"issue rules and regulations to permit a charitable
organization to pay or agree to pay for expenses in
connection with a fund-raising activity more than 25% of its
total gross income in those instances where the 25%
limitation would effectively prevent the charitable
organization from raising contributions." The Maryland Court
of Appeals has said that this waiver provision is "extremely
narrow," but it should still suffice to alleviate the
Court's concern that "unpopular" charities will be precluded
from soliciting. Ante, at 967. A charity unable to meet the
25% limit due to the unpopularity of its cause would clearly
be entitled to a statutory exemption.3
Finally, even for those activities which
mingle fundraising and advocacy, but do not fall within the
exceptions of 103D(b), 103D(a) appears to call for a pro
rata allocation of expenses into those expenses attributable
to the fundraising portion of the activity and those
attributable to the advocacy portion.
"The Secretary of State shall, by rule or
regulation in accordance with the `standard of accounting
and fiscal reporting for voluntary health and welfare
organizations' provide for the reporting of actual cost, and
of allocation of expenses, of a charitable organization into
those which [467 U.S. 947, 984] are in connection
with a fund-raising activity and those which are
not."
If such a pro rata allocation is required
by the statute, then expenses associated with door-to-door
solicitation by a member of the organization,4 which
involves advocacy and education as well as an appeal for
financial support, could not be charged entirely to
fundraising.5 If that is correct, the statute is not
overbroad at all. Expenses associated with advocacy and
public education would be completely excluded from the
fundraising calculus. The crucial point is that we cannot
know precisely how such activities will be accommodated
unless we first give Maryland a chance to face the question
in concrete situations.
It would be foolish to claim that these
four statutory safeguards will ensure that the statute will
never be applied in such a way as to improperly inhibit the
protected expression of any advocacy organization. No
statute bears an absolute guarantee that it will always be
applied within constitutional bounds; consequently, no such
guarantee can be demanded. The question before the Court, we
must remember, is whether the likely overbreadth of the
statute is substantial in relation to its legitimate sweep.
[467 U.S. 947, 985]
The differences noted above between this
statute and the ordinance condemned in Schaumburg serve to
minimize any potential overbreadth. And given the extensive
legitimate application of this statute, both to fundraising
expenses not attributable to public education or advocacy
and to the fees charged by professional fundraisers who,
like Munson, are not themselves engaged in advocating any
causes, I see no basis for concluding that the Maryland
statute is substantially overbroad. Nor does the Court offer
any reason to so believe. As noted, the Court simply
misunderstands the primary purpose and effect of the statute
and then proceeds to speculate about how it might be
improperly applied. Unfortunately, such misunderstanding and
ungrounded speculation are the natural hazards of
overbreadth analysis. When the Court's sights are not
focused on the actual application of a statute to a specific
set of facts, its vision proves sadly deficient.
I dissent.
Footnotes:
[Footnote 1] See also United States v. Raines,
362 U.S. 17, 21 (1960); Carmichael v. Southern Coal &
Coke Co., 301 U.S. 495, 513 (1937); Yazoo & M. V. R. Co.
v. Jackson Vinegar Co., 226 U.S. 217, 219-220 (1912);
Supervisors v. Stanley, 105 U.S. 305, 311-315 (1882); Austin
v. The Aldermen, 7 Wall. 694, 698-699 (1869).
[Footnote 2] The Court simply misses the point when
it dismisses this legitimate interest with the observation
that "there is nothing in the percentage limitation that
prevents [an organization] from misdirecting funds."
Ante, at 967. The concern is not that someone may abscond to
South America with the funds collected. Rather, a high
fundraising fee itself betrays the expectations of the donor
who thinks that his money will be used to benefit the
charitable purpose in the name of which the money was
solicited.
[Footnote 3] The Court itself acknowledges that
"[t]he possibility of a waiver may decrease the
number of impermissible applications of the statute," but
feels that this fact "does nothing to remedy the statute's
fundamental defect." Ante, at 968. As noted, however, the
Court simply ignores the extent to which the statute
directly and legitimately regulates both the fees charged by
professional fundraisers and those fundraising costs not
attributable to public education or advocacy. Properly
viewed, any decrease in the number of impermissible
applications of the statute is extremely significant as
tending to decrease overbreadth in relation to the statute's
legitimate sweep.
[Footnote 4] The statute specifically excludes from
the definition of professional fundraiser a "bona fide
salaried officer or employee of a charitable organization
which maintains a permanent office in the State."
103A(g).
[Footnote 5] The Court rightly points out, ante, at
963, n. 11, that one of the Secretary's regulations provides
that any public education activity which includes "an
appeal, specific or implied, for financial support, shall be
fully allocated to fund-raising expenses." Code of Maryland
Regulations 01.02.04.04A(3) (1983). But that regulation is
not necessarily consistent with the statutory scheme. It has
yet to be tested and we therefore do not know if it would be
upheld by the Maryland courts. At any rate, possible
constitutional failings in the regulations passed pursuant
to a statute do not form a basis for holding the statute
itself unconstitutional. A far less drastic solution would
be, in an appropriate case, to strike down the regulation.
[467 U.S. 947, 986]
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