fundraiser-contract-compliance

name	fundraiser-contract-compliance
language	en
description	Audits professional solicitor, fundraising counsel, and commercial co-venturer contracts for state charitable solicitation compliance. Classifies relationships, verifies vendor registration, extracts compensation and custody-of-funds terms, checks state-mandated clauses, and produces disclosure narratives, gap logs, and evidence packages. Use when reviewing fundraiser agreements, onboarding fundraising vendors, preparing state charity filings (CHAR007, CT-2CF, Schedule G), or auditing charitable solicitation compliance.
tags	["analysis","corporate","drafting","regulatory"]

Professional Fundraiser Contract Compliance Check

Produces a structured compliance audit that classifies each fundraising relationship, verifies registrations, extracts disclosure data, and maps contract clauses against state-mandated requirements.

Prerequisites

1. States in scope — where the charity is registered and/or solicits
2. Contract documents — executed agreements, amendments, SOWs, exhibits, fee schedules
3. Filing target(s) — annual report/renewal, campaign notice, co-venturer filing
4. Operational artifacts — donation flow diagrams, processor agreements, bank deposit controls (if available)
5. Registration IDs — fundraiser/solicitor/co-venturer and charity registration numbers per state (if known)
6. Solicitation start date — needed for Notice of Intent / contract filing deadlines

If inputs are missing, apply defaults: all registered states; annual report/renewal target; highest-risk classification until clarified. Mark gaps in "Open Items / Needed Inputs."

Output Structure

1. Classify Relationship and Verify Registration

Type	Key Markers	Regulatory Burden
Professional Solicitor	Directly solicits donations; may handle funds, donor data, scripts	Highest — registration, contract filing, campaign reporting, point-of-solicitation disclosures
Fundraising Counsel	Advises/manages campaigns; does NOT solicit or take custody of funds	Moderate — reclassified as solicitor if counsel solicits or takes custody
Commercial Co-Venturer	Ties purchase/use of goods to charitable benefit ("$1 per sale goes to X")	Advertising disclosures (benefit amount, duration, charity ID) and accounting
Platform / Processor / Vendor	Donation platform, payment processor, influencer/affiliate	May become solicitor or co-venturer depending on marketing claims and solicitation control

If classification is ambiguous, treat as highest-risk category until clarified by counsel.

Registration verification — for each vendor × state, extract and verify against state registry:

Data Point	Verification Source
Legal name, DBA, address	State registry
Entity type, state of formation	Secretary of State DB
Registration No. (per state)	State DB (e.g., NY FR-No, CA CT-No)
Bond posted (if required)	State bond registry
Charity's own registration	State DB

2. Extract Contract Data

Complete one row per vendor × campaign × contract/SOW:

Category	Fields to Extract
Parties	Legal names, addresses, entity types
Classification	Solicitor / counsel / co-venturer / other
Campaign	Name/ID, dates, services, whether "solicitation" occurs
Compensation	Type (%, flat, retainer, per-call, CPM); percentage + base (gross vs. net); minimums/guarantees; expense allocations
Custody of Funds	Who receives funds first; deposit method; deposit/remittance timing; segregation; deductions before remittance
Other Terms	Charity name/logo use; donor data ownership; records/inspection rights; script approval; filing responsibilities; cancellation rights; subcontractors

Funds flow — document for each arrangement: donor payment methods, intake entity, processor merchant of record, deposit account owner/type, deposit and remittance timing, deductions, reconciliation controls.

Funds-flow red flags:

• Vendor receives checks payable to vendor (not charity)
• Commingled accounts or no segregation of charitable funds
• Remittance timing unstated
• Charity lacks bank-view or reconciliation rights

3. Mandated-Clause Compliance Audit

Check each contract against this baseline. Verify exact requirements per state statute.

A. Parties, Scope & Campaign

• Charity and vendor identified (legal names, addresses)
• Services defined; whether vendor will solicit contributions
• Campaign(s) and geographic scope specified

B. Compensation

• Compensation stated clearly (%, fees, calculation base)
• "Gross receipts" vs. "net proceeds" defined
• Expenses and cost allocations defined
• Possible to compute % of gross contributions charity retains

C. Custody of Funds

• Who has custody/control at each step
• If vendor receives funds: segregation, deposit/remittance timing stated
• Cash/check handling, endorsements, payable-to instructions addressed
• Refunds/chargebacks and processor fees addressed

D. Term & Cancellation

• Term and renewal provisions clear
• Charity termination rights included
• Statutorily required cancellation right present (commonly 10–15 days) [VERIFY per state]

E. Recordkeeping & Audit

• Vendor must maintain campaign records (commonly 3–7 years)
• Charity access/inspection rights included
• Periodic accountings required (frequency and content defined)
• Written financial report required after campaign end (commonly 90 days) [VERIFY per state]

F. Solicitation Materials & Disclosures

• Charity approval of scripts/materials required before use
• Point-of-solicitation disclosures addressed (solicitor name, charity name, % retained)
• Co-venture ads include: benefit amount/%, duration, charity identity [VERIFY per state]

G. Registration & Filings

• Vendor represents current registration/licensing
• Registration numbers and renewal evidence required
• Responsibility for state filings/notices allocated
• Pre-solicitation filing deadlines referenced (commonly 10–20 days before start)

H. Subcontractors

• Subcontracting requires charity consent
• Subs meet same registration/recordkeeping requirements

I. Data & Privacy

• Donor data ownership and permitted use addressed
• Unauthorized sale/rental of donor lists prohibited
• Security measures and breach notification included

State-specific matrix — populate per state in scope:

State	Statute [VERIFY]	Cancellation Right	Financial Report Deadline	Required Filings
CA	Bus. & Prof. Code §§ 17510+			CT-1/CT-2 series
NY	Exec. Law Art. 7-A; 13 NYCRR Part 91			CHAR007
FL	Ch. 496, Fla. Stat.
IL	225 ILCS 460/

4. Produce Outputs

Gap / Issue Log

Issue ID	Contract / Vendor	Finding	Risk	Recommended Fix	Owner	Deadline

Disclosure narrative — Professional Solicitor/Fundraiser:

"During [start] to [end], the organization engaged [Vendor] ([address]; reg. no.: [state: ID]) as a [professional solicitor / fundraising counsel] for [campaign]. Compensation: [X% of gross contributions / $X flat fee] plus [expenses]. Gross contributions: $[amount]; fees paid: $[amount]; net to organization: $[amount] ([Y]% of gross). Contributions were [received directly by organization / received by vendor and remitted within [X] days]."

Disclosure narrative — Commercial Co-Venturer:

"During the reporting period, [Company] conducted a commercial co-venture: [promotion], [start] to [end]. Benefit to organization: [$X per sale / X% of sales], subject to [cap/floor]. Total received: $[amount]. Funds transferred [timing/method]. Registration: [state: ID/filing date]."

State reporting data map:

Item	Extracted Data	Form 990 Sch. G	CA CT-2CF	NY CHAR007
Solicitor/CCV name		Part I, Line 2a	Part II, Line 1	Part B
Compensation % or amount		Part I, Line 2c	Part II, Line 3	Part B
Gross receipts		Part I, Line 2b		Part B
Net retained by charity				Part B
Custody of funds (Y/N)		Part I, Line 2b
Campaign dates
Vendor registration no.

Evidence binder checklist:

• Executed contract + amendments/SOWs/exhibits
• Vendor registration proof per state
• Charity registration proof per state
• Notice of Intent / contract filing confirmations
• Campaign materials: scripts, mailers, landing pages, disclosures
• Funds flow proof: processor statements, bank deposits, remittance confirmations
• Campaign accounting: gross receipts, expenses, net to charity, refunds
• Vendor's written financial report of campaign
• Internal approvals (board/management)
• Annual report disclosure worksheet tied to source documents

Guidelines

• Charitable solicitation regulation is state-based — requirements differ significantly by state and classification. Always verify current statutes; these laws are frequently amended.
• If classification is unclear or mixed, default to highest-risk category.
• If only a master agreement is available, treat missing SOWs/amendments as compliance risks.
• Confirm exact form field names per state (CA RRF-1/CT-2CF, NY CHAR500/CHAR007, Form 990 Schedule G).
• Pre-solicitation filing deadlines (Notices of Intent, contract filings) are commonly 10–20 days before campaign start — check per state.
• Every classification must be supported by contract language and operational evidence.
• Compensation base (gross vs. net) must be clearly identified and consistently applied.
• Disclosure narratives must match extracted data and be internally consistent.
• Mark all uncertain citations or requirements with [VERIFY].
• After delivering the audit, confirm: (1) classification matches the user's understanding of each vendor's role, (2) no additional contracts/amendments are outstanding, (3) whether additional state narratives are needed, (4) whether funds-flow concerns require escalation.
• This workflow supports legal and compliance review — it is not legal advice.

Required disclaimer on every output:

THIS COMPLIANCE AUDIT REQUIRES INDEPENDENT ATTORNEY VERIFICATION OF ALL STATUTORY REQUIREMENTS, CLASSIFICATION DETERMINATIONS, AND FILING OBLIGATIONS, AND DOES NOT CONSTITUTE LEGAL ADVICE.