Fundraising Coordinator & Solicitor Licensing in NC

How to File a
Fundraising/ Solicitor
Contract and Final
Accounting Reports

North Carolina Secretary of State
Charitable Solicitation Licensing Division
www.sosnc.gov
The mission of the North Carolina Department of
the Secretary of State is to serve and protect the
citizens, the business community, and
governmental agencies by facilitating business
activities, by providing accurate and timely
information and by preserving documents and
records.
Our Mission

www.sosnc.gov
N.C. General Statute 131F
The General Assembly recognizes the right of persons or
organizations to conduct solicitation activities. It is the intent of
the General Assembly to protect the public by requiring full
disclosure by persons who solicit contributions from the public
for the purposes for which the contributions are solicited and
how the contributions are actually used. It is the intent of the
General Assembly to prohibit deception, fraud, and
misrepresentation in the solicitation and reporting of
contributions.

www.sosnc.gov
Professional Fundraisers
Two Categories:
• Fundraising Consultants
• Solicitors

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Registration Requirements
Professional fundraisers are required to be registered before
entering into a contract to solicit donations on behalf of a
charitable organization or sponsor in NC:
• Unless exempted under G.S. 131F-3;
• $200.00 license fee;
• A bond is required for licensure as a Solicitor.

www.sosnc.gov
When will my Registration Expire?
All professional fundraisers licenses expire on
March 31st of each year and you must renew on
or before March 31st to stay in compliance.

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• If you apply at any point during the year, you will be
issued a license from that day forward until March
31st.
• The Department will mail a license renewal notice to
all current licensees 65 days prior to the renewal
date.

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Fundraising Consultant
North Carolina General Statute 131F-2(10) defines a
fundraising consultant as any person who meets all of
the following:
If you:
• Have an agreement with a charity or sponsor , and
• It’s for a fixed rate or a fee, and
• The agreement is in writing, and

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Under the agreement you help the charity
solicit donations by:
• Planning or
• Managing or
• Conducting or
• Consulting or
• Preparing written materials.

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• Enter into a contract unless you have a current
license.
• Prepare materials for the charity that
misrepresent things like how much money the
charity will get from the solicitation.
Fundraising Consultants Cannot

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Solicitor
North Carolina General Statute 131F-2(19) defines a
solicitor as any person who, for compensation, does
not qualify as a fundraising consultant and does
either of the following:
a. Performs any service, including the employment
or engagement of other persons or services, to
solicit contributions for a charitable organization
or sponsor;

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Solicitor
b. Plans, conducts, manages, consults,
whether directly or indirectly, in
connection with the solicitation of
contributions for a charitable organization or
sponsor.

Who has to file a contract?
• Both the Fundraising Consultant and the Solicitor
www.sosnc.gov

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Contract
N.C.G.S. §131F-15(d): Contracts – Every contract
or agreement between a professional fundraiser
and a charitable organization or sponsor shall be
• In writing,
• Signed by two authorized officials of the
charitable organization or sponsor,

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• Filed by the professional fundraiser with the
Department at least five days prior to the
performance of any service by the fundraising
consultant; and
• Solicitation under the contract or agreement
shall not begin before the filing of the contract
or agreement.

The contract shall contain the following provisions:
1. A statement of the charitable purpose or sponsor purpose for which the solicitation
campaign is being conducted.
2. A statement of the respective obligations of the fundraising consultant and the
charitable organization or sponsor.
3. A clear statement of the fee that will be paid to the fundraising consultant.
4. The effective and termination dates.
5. A statement that the fundraising consultant shall not, at any time, have control
or custody of contributions.
www.sosnc.gov

www.sosnc.gov
I have a contract that lasts more than one year. Do I
have to send you the contract every year?
No. But, you do have to send us a Financial Report
for every year that a solicitation campaign happens
under the contract. The Financial Report is due each
year on the anniversary of the date the campaign
started.

www.sosnc.gov
Contract Checklist
• All professional fundraisers contracts are
required to be submitted with the contract
checklist.

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Contract Checklist
• If the contract is received without the required
contract checklist, the contract is returned to the
professional fundraiser.
• The professional fundraiser must re-submit the
contract and the required checklist.

FRC Contract Checklist Form
www.sosnc.gov

www.sosnc.gov
Surety Bonds
A surety bond is a kind of guarantee or insurance policy.
Solicitors have to get a surety bond from a company to
protect the charities they are soliciting contributions to
support.
The bond provides assurance to the charity that if the
solicitor does not return the contributions received to the
charity, there will be some money to cover all or part of
the charity’s loss.

www.sosnc.gov
Alternative to a Surety Bond
There is an alternative. You can get a certificate
of deposit.
The NC Department of Insurance has a
publication called “A Consumer’s Guide to Surety
Bonds.”

Where to get a surety bond
• NO, the Secretary of State do not issue bonds.
• You have to get a surety bond from a licensed insurance company.
• The North Carolina Department of Insurance (NCDOI) licenses the
companies. NCDOI has a list of licensed insurance companies that
provide surety bonds and can answer any questions you may have.
Call them at:
800-546-5664 (in North Carolina Only)
919-814-5400 ( outside North Carolina)
www.sosnc.gov

The necessary amount of the bond varies. It depends
on the amount of contributions you received through
solicitation campaigns for charities the year before
www.sosnc.gov
Amount of contributions
in the last fiscal year
Amount of Bond you
have to get
Less than $100,000 $20,000
$100,000 to $199,999 $30,000
$200,000+ $50,000

When do you have to get a bond?
You must have the bond in place when you apply for
your license and provide it during the application
process.
www.sosnc.gov

How long do I have to keep the bond?
You have to keep the bond as long as you’re licensed
as a solicitor. If your bond is suspended or revoked,
your solicitor license will be suspended until you
provide CSL a new bond certificate.
www.sosnc.gov

www.sosnc.gov
After I get my license will I need to file
anything else with you?
YES! Solicitors have to file a number of
important documents with us. You have to
file documents throughout the year related
to your solicitation activity in North Carolina.

www.sosnc.gov
A solicitor must send in a
Solicitation Campaign Notices/Sol Contract
N.C.G.S. §131F-16(f): Solicitation Notice - No less
than five days before commencing any
solicitation campaign or event, the solicitor shall
file with the Department a solicitation notice on
a form provided by the Department.

www.sosnc.gov

www.sosnc.gov
(1) A statement of the charitable or sponsor purpose and program for which the solicitation
campaign is being conducted.
(2) A statement of the respective obligations of the solicitor and the charitable organization or
sponsor.
(3) A statement of the guaranteed minimum percentage of the gross receipts from contributions
which will be remitted to the charitable organization or sponsor. If the solicitation involves
the sale of goods, services, or tickets to a fund-raising event, the percentage of the purchase
price which will be remitted to the charitable organization or sponsor. Any stated percentage
shall exclude any amount which the charitable organization or sponsor shall pay as fund-
raising costs.

www.sosnc.gov
(1) A statement of the percentage of the gross revenue for which the solicitor shall be
compensated. If the compensation of the professional solicitor is not contingent upon the
number of contributions or the amount of revenue received, the compensation shall be
expressed as a reasonable estimate of the percentage of gross revenue, and the contract
shall clearly disclose the assumptions upon which the estimate is based. The stated
assumptions shall be based upon all of the relevant facts known to the solicitor regarding
the solicitation to be conducted by the solicitor.
(2) The effective and termination dates of the contract.

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What a Solicitation Campaign
Financial Report?

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Solicitation Campaign Financial Reports
Financial Report. – Within 90 days after a
solicitation campaign has been completed and on
the anniversary of the commencement of a
solicitation campaign lasting more than one year,
the solicitor shall provide to the Department a
financial report of the campaign,

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Solicitation Campaign Financial Reports
Including the gross revenue received, an itemization of all
expenses incurred, and the fixed percentage of the gross revenue
that the charitable organization or sponsor received as a benefit
from the solicitation campaign.
The report shall be completed on a form provided by the
Department and shall be signed by an authorized official of the
solicitor who shall certify under oath that the report is true and
correct.

www.sosnc.gov
Are there any other things I need to be aware of as
a solicitor?
You have to notify us of changes in any information
on documents you file with us. You have to let us
know within 7 days of when the change occurred.

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a solicitor?
You, and any individual working for you, must disclose
to each person from whom you verbally solicit
contributions, the following:
• Your name or your business name as you have it on
file with us;

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a solicitor?
• Your legal name, and your employees must provide
their legal name when soliciting contributions;
• Inform the person that you are a paid solicitor.
These disclosures must be made verbally for in
person and phone solicitations and must be made
in writing for any written solicitations.

Additionally, ALL written solicitations must contain the following disclosure statement
in a minimum font size nine and be made conspicuous by underline, border, or bolding:
Financial information about the solicitor and a copy of its license are available from
the State Solicitation Licensing Branch at 919-814-5400 or 888-830-4989. This license is
not an endorsement from the State.
www.sosnc.gov

There are some things you can’t do as a solicitor
For example, you can’t:
• Act as a solicitor after your license has
expired;
• Send anything that looks like an invoice in an
effort to collect a donation;
www.sosnc.gov

There are some things you can’t do as a solicitor
• Say someone’s connected with a solicitation without
their permission;
• Solicit and say it’s for a charity or use the charity’s
name unless you have their permission;
• Misrepresent how much money a charity will get
from a solicitation.
www.sosnc.gov

www.sosnc.gov
Annual Reports
The North Carolina Department of the Secretary of State prides itself on
disseminating information geared toward keeping the public informed. The
Charitable Solicitation Licensing (CSL) Division publishes Annual Reports that
include financial information related directly to those charities and nonprofits
using a professional fundraiser and otherwise required by law to register with
the Department. This report serves as a resource for North Carolina citizens as
they strive to make educated decisions for their charitable dollars.

Have more questions?
Contact Information
csl@sosnc.gov | 919-814-5570 | 888-830-4989 (NC Residents)
____________________________________________________ _______________________
www.sosnc.gov

Fundraising Coordinator & Solicitor Licensing in NC

Fundraising Coordinator & Solicitor Licensing in NC

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