Fundraising contracts

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Not for profit

It is recommended that contracts between your organisation and the fundraiser avoid terms or conditions where the fundraiser pays a lump sum and then proceeds to use your organisation's name for an extended period of time with your organisation having no control over the process or return on fundraising.

CONSIDER THE FOLLOWING:

  • The terms by which the fundraiser has the right to use your organisation’s name and also to collect under your organisation's licence as required under section 6 of the Charitable Collections Act 1946.
  • A requirement for the fundraiser to provide workers’ compensation and public liability insurance covering employees and subcontractors of the fundraiser. Copies of the policies should be provided to your organisation to ensure that they are current and the premium has been paid.
  • A requirement dealing with internal audit controls so that your organisation can inspect the records of the fundraiser to ensure that all money is banked within 14 days, as required under regulation 11 of the Charitable Collections Regulations 1947.
  • A requirement that all money raised should be paid direct to your organisation and not renumerated via the fundraiser.
  • Provision dealing with who pays for any advertising - your organisation or the fundraiser?
  • The arrangements of payment to the fundraiser, including the percentage of funds received that the fundraiser is to be paid (where appropriate). This amount should take into account section 13 of the Charitable Collections Act 1946, which provides that the Charitable Collections Advisory Committee may recommend to the Minister that an organisation’s licence be revoked because excessive remuneration is being paid out of collected funds.
  • A requirement for the fundraiser to provide a budget of all expenses that will be incurred in raising the funds and the estimated income to be received.
  • A provision dealing with how any losses that may be incurred will be allocated.
  • Details of the circumstances in which a campaign will be terminated and the procedures to be followed for termination.

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