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Professional Fundraisers for Charitable Purposes | State of California - Department of Justice - Office of the Attorney General

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Professional fundraisers may include commercial fundraisers, fundraising counsels, and commercial coventurers. There are mandatory registration requirements and contract requirements for commercial fundraisers and fundraising counsels that" /> <meta name="generator" content="Drupal 7 (http://drupal.org)" /> <link rel="canonical" href="https://oag.ca.gov/charities/pf" /> <link rel="shortlink" href="https://oag.ca.gov/node/22670" /> <meta property="og:site_name" content="State of California - Department of Justice - Office of the Attorney General" /> <meta property="og:type" content="article" /> <meta property="og:url" content="https://oag.ca.gov/charities/pf" /> <meta property="og:title" content="Professional Fundraisers for Charitable Purposes" /> <meta property="og:description" content="Professional Fundraiser Webinar About Professional Fundraisers Charities use various professional fundraisers to solicit donations. Professional fundraisers may include commercial fundraisers, fundraising counsels, and commercial coventurers. There are mandatory registration requirements and contract requirements for commercial fundraisers and fundraising counsels that must be adhered to both by the charities and their respective fundraising professionals. Please note that certain terms must be included in the contract. A model contract is available." /> <meta property="og:updated_time" content="2024-01-31T14:28:38-08:00" /> <meta property="og:image" content="https://oag.ca.gov/sites/default/files/oag-opengraph.jpg" /> <meta name="twitter:card" content="summary_large_image" /> <meta name="twitter:url" content="https://oag.ca.gov/charities/pf" /> <meta name="twitter:title" content="Professional Fundraisers for Charitable Purposes" /> <meta name="twitter:description" content="Professional Fundraiser Webinar About Professional Fundraisers Charities use various professional fundraisers to solicit donations. 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}, function() { jQuery(this).find('.dropdown-menu').hide(); jQuery(this).removeClass('open'); }); </script> </div> </div> </div> <!-- </div> --> <!-- </div> </nav> --> <div class="container-fluid"> <div class="row"> </div> </div> <div class="main-container container"> <div class="row"> <section class="col-sm-9"> <a id="main-content"></a> <h1 class="page-header">Professional Fundraisers for Charitable Purposes</h1> <ol class="breadcrumb"><li><a href="/">Home</a></li> <li><a href="/charities" class="active-trail">Charities</a></li> <li class="active">Professional Fundraisers for Charitable Purposes</li> </ol> <div class="region region-content"> <div id="block-system-main" class="block block-system"> <div class="content"> <div id="node-22670" class="node node-page clearfix" about="/charities/pf" typeof="foaf:Document"> <span property="dc:title" content="Professional Fundraisers for Charitable Purposes" class="rdf-meta element-hidden"></span><span property="sioc:num_replies" content="0" datatype="xsd:integer" class="rdf-meta element-hidden"></span> <div class="content clearfix"> <div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><style> .orderedAccordion .panel-collapse ul { list-style-type: inherit; font-size: 1em; color: #000; } .panel-title { font-size: 1.2em; font-weight: 500; } .panel-collapse { padding-left: 2.5em; } .contact { padding-bottom: 1.5em; text-align: center; border-left: 5px solid #fff; } .back-link { width: 100%; text-align: right; border-bottom: 3px solid #ddd; padding: 0.5em; margin-top: 1em; } .text-svg { padding: 3px 0 2px 0; margin-left: 10px; display: inline-block; } .svg-align { display: inline-block; vertical-align: middle; } .list-num { display: inline-block; min-width: 2em; vertical-align: top; } .list-q { display: inline-block; max-width: 90%; } .panel-darkblue { border-color: #23406e; } .panel-darkblue > .panel-heading { border-color: #23406e; background-color: #23406e; color: #fff; } .yellow-emphasis { color: #fc0; } .panel > .collapse ul { list-style-type: disc; font-size: 1em; color: #000; } .panel > .collapse .panel-heading{ text-align: inherit; background: #f5f5f5; color: #333; font-size: 1em; font-weight: 500; } .panel > .collapse .panel-default { border: 1px solid #ddd; } #pf-accordion .panel-heading a:before { font-family: 'Glyphicons Halflings'; content: "\e114"; float: right; transition: all 0.5s; font-size: 0.75em; } </style> <h2>Professional Fundraiser Webinar</h2> <iframe width="100%" height="450" src="https://www.youtube.com/embed/xJD3mdarehM?ecver=2&amp;controls=1&amp;showinfo=0&amp;autoplay=0" frameborder="0" allowfullscreen="" title="Webinar Video"></iframe> <br><br> <div class="panel-group" id="pf-accordion" role="tablist" aria-multiselectable="true"> <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingOne"> <h4 class="panel-title"> <a role="button" data-toggle="collapse" data-parent="#pf-accordion" href="#aboutpf" aria-expanded="true" aria-controls="aboutpf"> About Professional Fundraisers </a> </h4> </div> <div id="aboutpf" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingOne"> <div class="panel-body"> <p>Charities use various professional fundraisers to solicit donations. Professional fundraisers may include commercial fundraisers, fundraising counsels, and commercial coventurers. There are mandatory registration requirements and contract requirements for commercial fundraisers and fundraising counsels that must be adhered to both by the charities and their respective fundraising professionals. Please note that certain terms must be included in the contract. A <a href="/sites/all/files/agweb/pdfs/charities/publications/modelcontract.pdf">model contract</a> is available.</p> <p>Historically, use of professional fundraisers has meant higher costs for charities. Significant resources can be spent on campaigns or events due to the reimbursement of expenses and fundraising fees paid by charities. Most of the charities that are registered with the Registry of Charities and Fundraisers do not employ professional fundraisers.</p> </div> </div> </div> <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingThree"> <h4 class="panel-title"> <a role="button" data-toggle="collapse" data-parent="#pf-accordion" href="#cf" aria-expanded="true" aria-controls="cf"> Commercial Fundraisers </a> </h4> </div> <div id="cf" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingThree"> <div class="panel-body"> <p>A <a href="/charities/pf/cf">commercial fundraiser</a> can be a person or organization who is paid by a charity to solicit money or property on the charity's behalf. The commercial fundraiser may solicit donations through various means, such as: direct mail, telephone, email or internet platform, auction at charity events, event ticket sales, vehicle donation, or thrift store operation.</p> <p><a href="/charities/pf/cf">Commercial Fundraiser Forms, Frequently Asked Questions and Laws & Regulations</a></p> </div> </div> </div> <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingFour"> <h4 class="panel-title"> <a role="button" data-toggle="collapse" data-parent="#pf-accordion" href="#fc" aria-expanded="true" aria-controls="fc"> Fundraising Counsels </a> </h4> </div> <div id="fc" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingFour"> <div class="panel-body"> <p>A <a href="/charities/pf/fc">fundraising counsel</a> can be a person or organization who is hired by a charity to plan, manage, advise, counsel, consult, or prepare materials to solicit donations for charitable purposes. Unlike the commercial fundraiser, a fundraising counsel does not solicit donations from the public, and does not receive or exercise any control over the solicited funds or property. Instead, the donations go directly to the charity.</p> <p><a href="/charities/pf/fc">Fundraising Counsels Forms, Frequently Asked Questions and Laws & Regulations</a></p> </div> </div> </div> <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingFive"> <h4 class="panel-title"> <a role="button" data-toggle="collapse" data-parent="#pf-accordion" href="#cc" aria-expanded="true" aria-controls="cc"> Commercial Coventurer </a> </h4> </div> <div id="cc" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingFive"> <div class="panel-body"> <p>A <a href="/charities/pf/cc">commercial coventurer</a> can be a person or organization who, for profit, is primarily engaged in a business other than in connection with raising funds for charitable purposes. A commercial coventurer represents to the public that the purchase or use of its goods or services will benefit a charitable organization.</p> <p><a href="/charities/pf/cc">Commercial Coventurer Forms, Frequently Asked Questions and Laws & Regulations</a> </p> </div> </div> </div> <!-- <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingSix"> <h4 class="panel-title"> <a role="button" data-toggle="collapse" data-parent="#pf-accordion" href="#crowdfund" aria-expanded="true" aria-controls="crowdfund"> Crowdfunding </a> </h4> </div> <div id="crowdfund" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingSix"> <div class="panel-body"> <p>Crowdfunding sites provide an online place for individuals, businesses, and/or nonprofits to solicit funds. These sites provide easy-to-use interfaces to those who may not have the ability to build their own site. The individual business models vary, but many employ “gamification” techniques (e.g., trackable fundraising goals) and social media to encourage donations. Donations are made through the site and disbursed to the solicitor. In exchange, the sites may take a portion of each donation. If a crowdfunding site meets the legal definition of a commercial fundraiser or fundraising counsel, they are required to register and comply with all reporting requirements. Further information regarding crowdfunding can be found in the Attorney General’s <a href="/sites/all/files/agweb/pdfs/charities/publications/guide-online-charitable-giving.pdf">Guide for Online Charitable Giving</a>. Note that donations to crowdfunding sites may not be tax exempt.</p> </div> </div> </div> --> <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingSeven"> <h4 class="panel-title"> <a role="button" data-toggle="collapse" data-parent="#pf-accordion" href="#pfr" aria-expanded="true" aria-controls="pfr"> Professional Fundraiser Reports </a> </h4> </div> <div id="pfr" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingSeven"> <div class="panel-body"> <p>The Attorney General’s Office prepares an annual summary report derived from the financial disclosure documents filed by commercial fundraisers and commercial coventurers. These reports include statistics for donations of both cash and used personal goods. 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