Most states have adopted charitable solicitation laws designed to protect donors, the general public, and charities themselves from fraud. Generally, these laws require charities and their fundraisers to register with the state, describe their fundraising activities, file financial documents, and pay a fee that covers the administrative expenses of monitoring charities. The Federal Trade Commission authorizes the filing of complaints when it has reason to believe that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest.
The District of Columbia Fundraising Agreement is a legal document that governs the relationship between a nonprofit organization (NPO) and a professional fundraising consultant or fundraising counsel operating in the District of Columbia. It outlines the terms and conditions under which the consultant or counsel can operate on behalf of the NPO to conduct fundraising activities within the district. The agreement ensures compliance with state-specific regulations and licensing requirements while preserving the transparency and accountability of fundraising efforts. It aims to protect the interests of donors, prevent fraudulent practices, and maintain the ethical standards of the fundraising industry. Key provisions commonly found in a District of Columbia Fundraising Agreement include: 1. Parties Involved: The agreement identifies the NPO and the fundraising consultant or counsel as the principal parties involved in the agreement. 2. Scope of Work: It outlines the specific fundraising services to be performed by the consultant or counsel, such as solicitation of funds, event planning, donor outreach, or grant writing. 3. Compensation: The agreement details the consultant's or counsel's compensation, typically in the form of a percentage of funds raised or a fixed fee structure. It may also include provisions for reimbursement of expenses incurred during the fundraising activities. 4. Duration: The agreement specifies the duration of the engagement between the NPO and the consultant or counsel, including the start and end dates of the contract. 5. Confidentiality: It includes clauses to protect confidential information shared between the parties during the course of the agreement. 6. Compliance and Reporting: The agreement sets forth the obligations of the consultant or counsel to adhere to all applicable laws, regulations, and licensing requirements related to fundraising in the District of Columbia. It may also require the consultant or counsel to provide periodic reports on their fundraising activities to the NPO. It is important to note that while the roles and responsibilities of fundraising consultants and counsels may overlap, they are distinct in terms of legal definitions. The District of Columbia recognizes and regulates both types of professionals differently: — District of Columbia Fundraising Consultant: A fundraising consultant is an individual or entity that provides advice, planning, or strategy for fundraising campaigns without engaging in solicitation activities directly. — District of Columbia Fundraising Counsel: A fundraising counsel goes beyond consultancy and actively engages in soliciting, planning, or managing fundraising campaigns on behalf of an NPO. They may directly contact potential donors, organize events, or carry out other fundraising activities. Different agreements may be tailored based on the specific type of professional involved, whether fundraising consultant or fundraising counsel. The content of the agreement will depend on the nature of the relationship established and the requirements stipulated by the District of Columbia's fundraising regulations.
