§2472. Contracts between paid fundraisers and charitable organizations

Link to law: http://legislature.vermont.gov/statutes/section/09/063/02472
Published: 2015

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The Vermont Statutes Online



Commerce and Trade








2472. Contracts between paid fundraisers and charitable organizations

(a) Prior to

soliciting in this State, a paid fundraiser shall enter into a written contract

with the charitable organization on whose behalf solicitations are to be made.

The contract shall contain the following:

(1) A minimum

percentage of the gross receipts of the fundraising campaign to be paid to the

charitable organization.

(2) An itemized

description of all expenses, commissions, and other amounts that are to be

deducted from the receipts of the fundraising campaign, how they are to be

calculated, and to whom they are to be paid.

(3) An

authorized signature of the charitable organization indicating approval of the

terms of the contract.

(4) The

following statement in immediate proximity to the signature of the charitable

organization, in a minimum size of 10 points:

Chapter 63 of

this title requires a paid fundraiser to provide the fundraiser's charitable

sponsor, within 60 days after the end of a solicitation campaign, with a

statement setting out the name and address of each contributor and the amount

of the contribution; the amount of the gross receipts; and an itemized list of

all expenses, commissions, and other costs incurred in the campaign. The law

also gives charities other rights, including the right to cancel this contract

or to recover damages, or both, in certain circumstances. Contact the Vermont

Attorney General for further information.

(5) A provision

that prohibits the paid fundraiser from restricting in any way the use by the

charitable organization of the list of donors to the campaign.

(b) Prior to

commencing a solicitation, a paid fundraiser shall:

(1) Provide to

the charitable organization on whose behalf solicitations are to be made, the

wording to be used by the paid fundraiser when conducting written solicitations

and a copy of any script to be used in conducting telephone or in-person


(2) Obtain

written approval from the charitable organization for the use of such wording

and script.

(c) A charitable

organization may rescind any contract with a paid fundraiser and have all

contributions in the possession of the paid fundraiser returned to the

contributors if the contract or the paid fundraiser does not comply with this


(d) Upon application

for State funds received through a grant or contract, a charitable organization

shall disclose:

(1) the actual

percentage of gross receipts of any fundraising campaign paid to the charitable

organization within the two previous fiscal years; and

(2) the minimum

contracted percentage of gross receipts to be paid by a paid fundraiser to the

charitable organization in any current or known future fundraising campaign.

(Added 1989, No. 232 (Adj. Sess.), § 2; amended 2003, No. 51, § 2.)