If your charity is engaging professional fundraisers to solicit, there are certain reporting and registration requirements
that you need to be aware of. In this video, I want to talk about types of
professional fundraisers, where they need to register, and why your charity should
be concerned about this. Hi, my name is Ron Barrett and
I’m the Vice President of Nonprofit Services
here at COGENCY GLOBAL. In most states, there are two
types of professional fundraisers. The first type are solicitors.
They actually do the ask on behalf of charities. They send the letters, they write the emails, they make the phone calls. They’re professional solicitors.
The other type of professional fundraisers are fundraising consultants, sometimes called
fundraising counsel. Both of these types of fundraisers need to register in many
states. For solicitors, they need to register in up to 43 states to solicit.
For fundraising counsel, they need to register in up to 31 states, usually at
the attorney general’s office or the Secretary of State.
So why should your charity be concerned about registration requirements for professional
fundraisers? Well, for two reasons. First, if your charity is registered to solicit,
you’re required to report professional fundraisers that you work with and
sometimes to file copies of the contracts that you’ve entered into with
these professional fundraisers. Another reason is is that when you report your 990 to the IRS, you need to disclose professional fundraisers that you’ve
worked with on schedule G and this is required if you spend more than fifteen
thousand dollars on professional fundraisers. Similar to registration
requirements for charities, since the professional fundraisers have to
register they need to disclose charities that they’re working with. So you get
into a situation where reporting requirements of one can trigger notices
to the other, both for charities that are registering and reporting professional
fundraisers, and both for professional fundraisers that are reporting and
disclosing charities that they work with. Thanks for listening today.
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