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Maine.gov > PFR Home > Professional Licensing > List of Professions > Charitable Solicitations > Publications

Charitable Solicitations - Publications

Office of Licensing and Registration
35 State House Station
Augusta, Maine 04333-0035

Tel: (207) 624-8603
Fax: (207) 624-8637
Hearing-Impaired: 1-888-577-6690

15 TIPS FOR CHARITIES WORKING WITH PROFESSIONAL FUND RAISERS

The State of Maine Department of Professional and Financial Regulation, Office of Licensing and Registration, has compiled a list of tips to guide charities that hire paid solicitors. The following suggestions are intended to assist charities in properly monitoring paid solicitation campaigns and thus reduce the risk of problems.

1. BE CERTAIN your organization and the paid fundraiser are currently licensed with the Office of Licensing and Registration pursuant to 9 MRSA, Chapter 385 before entering into a contract or beginning to solicit: http://pfr.informe.org/almsonline/almsquery/SearchCompany.aspx?c=1

2. ASK FOR THE PROFESSIONAL SOLICITOR'S LICENSE NUMBER, WHICH WAS ISSUED BY THE OFFICE OF LICENSING AND REGISTRATION. Verify its accuracy and confirm that the fundraiser’s license and surety bond are current.

3. CHECK ALL REFERENCES. A prospective professional fundraiser should be able to give you the names and addresses of organizations on whose behalf he/she has conducted fund raising events. Check with these organizations to be sure that they had positive experience with the fundraiser.

4. PUT YOUR CONTRACT IN WRITING. Your charitable organization must have a written contract with the fundraiser, executed by an authorized representative of your organization. All terms agreed upon are to be in writing. The complete legal names of the organization and the fundraiser should be used, the names of the persons signing the contract should be printed below the signatures, and a full mailing address for both parties must be included. Be sure the following are included:

Clear complete terms as to what amount of money raised goes to your charitable organization. Also include any terms which guarantee a minimum amount your charity will receive.

Whether it is you or the professional fundraiser who has control over the funds as they are received, including funds arriving after the conclusion of the campaign. Under Maine law, each contribution collected by the fundraiser shall, in its entirety and within 5 days of its receipt, be deposited in an account at a bank or other federally insured financial institution. Put the account in the name of the charitable trust. The charity should have control of all withdrawals from the account. NEVER SIGN BLANK CHECKS!

Who will be responsible for distributing all show tickets and/or other promotional items involved in fund raising?

Who will pay the professional fundraiser’s expenses if the fund raising is unsuccessful? Specify whether it is the solicitor or the charity.

5. REVIEW THE SCRIPT to be used in telephone soliciations:

A Professional Solicitor may not solicit a contribution from any person in this State without clearly and conspicuously disclosing to
the person, prior to the time the person makes or authorizes payment of a donation:

A. The name and address of the professional solicitor;

B. That the solicitor is being paid by the charitable organization on whose behalf the solicitation is being made; and

C. How the potential contributor may obtain information from the State on the respective percentages of contributions that will be
paid to the charitable organization and to the paid fund-raiser.

6. MAKE PERIODIC VISITS to the telephone room(s) where the solicitations are being conducted, to monitor compliance with the Charitable Solicitations Act regarding the required disclosures. (9 M.R.S.A. §5011-A (4).

7. OBTAIN LEGAL ADVICE whenever possible, and review the contract before you sign it, to be sure your interests are protected.

8. REVIEW both the sales records and financial records at least weekly. Make the project manager aware that you plan to do this.

9. CASH should be deposited in the bank account established by the charity. If you do not see cash being deposited at least every five days, you should ask the project manager to explain the method of accounting used when cash is received.

10. BE SURE DATES AND TIMES for rentals, tickets, agreements, etc., are agreed upon in advance of the solicitation.

11. OBTAIN COPIES of the original invoices as received, paid receipts as paid, bank statements, checks and deposit slips.

12. MONITOR ALL EXPENSES to be sure that they are reasonable and ordinary. You should immediately question any expense which you feel is excessive or without documentation.

13. CONTACT your Town/City Clerk prior to the commencement of fund raising and ask whether or not any additional permit or license is required from the municipality.

14. AGREE upon the FINAL SETTLEMENT date in advance and write it into the contract.

15. REPORT any problems to the Office of Licensing and Registration, 35 State House Station, Augusta, ME 04333, telephone (207) 624-8624 or contact us by e-mail at marlene.m.mcfadden@maine.gov.

 

Last Updated: June 20, 2008