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A commercial fundraiser agreement is a formal contract between a nonprofit organization (often a charity) and a commercial fundraiser. This agreement outlines the terms under which the commercial fundraiser will solicit donations, manage fundraising events, or conduct campaigns on behalf of the nonprofit. These agreements are essential to ensure compliance with laws governing charitable fundraising, transparency for donors, and accountability for both parties.
Roles and Responsibilities:
Fee Structure:
Compliance:
Transparency:
Term and Termination:
Performance Metrics:
Conflict of Interest and Confidentiality:
Dispute Resolution:
This document is important for fundraising campaigns because many jurisdictions require written agreements for fundraising activities to protect donors and maintain nonprofit integrity.
In addition, it also clarifies expectations and ensures funds raised are used as intended. And it further demonstrates transparency and professionalism, fostering trust among contributors.
It is advised that nonprofits must carefully draft and review these agreements, often with legal advice, to avoid potential pitfalls and protect their mission.
1. Get yourself familiar with the terms. Before signing the agreement, both parties should negotiate the terms based on the needs of the nonprofit and the services the commercial fundraiser can provide.
2. Once you have agreed on the terms, then put your agreed terms in writing. Both parties should be clear on their responsibilities, and the document should cover all key areas, including:
You may want to consult with a lawyer to ensure the terms are legally sound and compliant with applicable laws, especially state or federal regulations for charitable fundraising.
3. Once both parties are satisfied with the terms, sign the agreement. It’s often a good idea for both parties to have copies of the signed contract for their records. If you’re a nonprofit, ensure that the signature is from an authorized representative, such as an executive director or board member.
Please note that this guidance is a summary and should be used as a reference. It is important to refer to the actual agreement for the full details and to seek legal advice if needed.