Fundraising Counsels for Charitable Purposes | State of California - Department of Justice

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}); </script> </div> </div> </div>   <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">Fundraising Counsels for Charitable Purposes</h1> <ol class="breadcrumb"><li><a href="/">Home</a></li> <li><a href="/charities" class="active-trail">Charities</a></li> <li><a href="/charities/pf" class="active-trail">Professional Fundraisers</a></li> <li class="active">Fundraising Counsels 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-140877" class="node node-page clearfix" about="/charities/pf/fc" typeof="foaf:Document"> <span property="dc:title" content="Fundraising Counsels 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; } #pffc-accordion .panel-heading a:before { font-family: 'Glyphicons Halflings'; content: "\e114"; float: right; transition: all 0.5s; font-size: 0.75em; } </style> <div class="panel panel-darkblue"> <div class="panel-heading">  <h2>Updated Forms for 2022</h2> </div> <div class="panel-body"> <p>Updated forms are available for download and are required with filings received by the Registry on or after <strong><em>January 1, 2022</strong></em>. Significant changes and important reminders include:</p> <ul> <li>Annual Registration fee is updated to $500.</li> <li>Please always download the latest forms from this webpage each year before filing or reporting.</li> </ul> <p><strong>Note:</strong> Please expect 30-90 days to process filings (forms and/or supporting documentation) from the date received. We will reply, if necessary. Please check the <a href="https://rct.doj.ca.gov/Verification/Web/Search.aspx?facility=Y" target="_blank">Registry Search Tool</a> for updates.</p> </div> </div> <div class="panel-group" id="pffc-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="#pffc-accordion" href="#aboutfc" aria-expanded="true" aria-controls="aboutpf"> About Fundraising Counsels </a> </h4> </div> <div id="aboutfc" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingOne"> <div class="panel-body"> <p>A <strong>fundraising counsel</strong> is a type of <a href="/charities/pf">professional fundraiser</a>. A fundraising counsel can be a person, corporation, or unincorporated association 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> </div> </div> </div> <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingTwo"> <h4 class="panel-title"> <a class="collapsed" role="button" data-toggle="collapse" data-parent="#pffc-accordion" href="#legal" aria-expanded="false" aria-controls="legal"> Legal Obligations </a> </h4> </div> <div id="legal" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingTwo"> <div class="panel-body"> <p>By law, the California Attorney General oversees the activities of fundraising counsel. A fundraising counsel that operates in California must do all of the following:</p> <ol> <li>File <strong>Form CT-3CF</strong> to register with the Attorney General's Registry of Charities and Fundraisers before working with a charity.</li> <li>Pay the registration fee.</li> <li>Renew registration each year.</li> <li>File <strong>Form CT-11CF</strong> – Notice of Intent to Provide Services Related to Charitable Solicitation 10 days before starting any service for a charitable organization.</li> <li>Comply with the contract requirements set by California law.</li> <li>File a report each year on a form provided by the Registry of Charities and Fundraisers listing the charities for whom the fundraising counsel provided services and certifying that the fundraising counsel has a written contract with each charity that complies with the legal requirements.</li> </ol> <p>The failure to comply with registration, renewal, and filing requirements, and the prohibitions and other requirements set out in Government Code section 12599.1 and 12599.6, may lead to the filing of civil litigation or administrative enforcement actions and subject the fundraising counsel to civil penalties and other orders as provided in Government Code sections 12591.1, 12598, subdivisions (a) and (e)(1), and 12599.1, subdivisions (g) and (h).</p> </div> </div> </div> <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingThree"> <h4 class="panel-title"> <a class="collapsed" role="button" data-toggle="collapse" data-parent="#pffc-accordion" href="#forms" aria-expanded="false" aria-controls="forms"> Forms - Registration & Reporting </a> </h4> </div> <div id="forms" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingThree"> <div class="panel-body"> <ul> <li> <a href="/system/files/media/ct-3cf_form_05.pdf">CT-3CF Form & Instructions, pdf</a><br> <strong>Annual Registration Form</strong> </li> <li> <a href="/system/files/media/ct-11cf_form_05.pdf">CT-11CF Form & Instructions, pdf</a><br> <strong>Notice of Intent to Provide Services Related to Charitable Solicitation</strong> </li> </ul> </div> </div> </div> <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingFour"> <h4 class="panel-title"> <a class="collapsed" role="button" data-toggle="collapse" data-parent="#pfcf-accordion" href="#laws" aria-expanded="false" aria-controls="laws"> Laws & Regulations </a> </h4> </div> <div id="laws" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingFour"> <div class="panel-body"> <ul> <li>California Law on the Supervision of Trustees and Fundraisers for Charitable Purposes (<a href="https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=GOV&division=3.&title=2.&part=2.&chapter=6.&article=7" target="_blank" rel="noopener noreferrer">Gov. Code, § 12580 et seq.</a>)</li>  <li>California Regulations on the Supervision of Trustees and Fundraisers for Charitable Purposes (<a href="/system/files/media/supervision-trustees-fundraisers.pdf">Cal. Code Regs., tit. 11, § 300 et seq.</a>)</li>  </ul> </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="#pffc-accordion" href="#faqs" aria-expanded="true" aria-controls="faqs"> Frequently Asked Questions </a> </h4> </div> <div id="faqs" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingFive"> <div class="panel-body"> <div class="panel-group orderedAccordion" id="accordion1" role="tablist" aria-multiselectable="true"> <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingFC1"> <h4 class="panel-title"> <a role="button" data-toggle="collapse" data-parent="#accordion1" href="#collapseFC1" aria-expanded="true" aria-controls="collapseFC1"> <span class="list-num">1.</span><span class="list-q">When is registration required?</span></a></h4> </div> <div id="collapseFC1" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingFC1"> <div class="panel-body"> <p>Registration is required before providing any fundraising counsel services to any charity: before managing, advising, counseling, consulting, or preparing materials to solicit donations for charitable purposes.</p> <p>Registration must be renewed by January 15 of each calendar year in which the fundraising counsel does business, and is effective for one year.</p> </div> </div> </div> <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingFC2"> <h4 class="panel-title"> <a role="button" data-toggle="collapse" data-parent="#accordion1" href="#collapseFC2" aria-expanded="true" aria-controls="collapseFC2"> <span class="list-num">2.</span><span class="list-q">Is there a penalty for not registering, or filing annual report(s) by the required dates?</span></a></h4> </div> <div id="collapseFC2" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingFC2"> <div class="panel-body"> <p>Yes. Government Code section 12586.1 states that in addition to a registration fee, a fundraising counsel may be assessed a twenty-five dollars ($25) late fee for each month or part of the month after the date on which the registration or required reports were due if the fundraising counsel does any of the following:</p> <ul> <li>Exists and operates in California without being registered.</li> <li>Solicits contributions in California without being registered or, if applicable, bonded.</li> <li>Fails to correct the deficiencies in its registration or annual report within 30 days of receipt of written notice of those deficiencies.</li> </ul> <p>The Attorney General has the option of imposing penalties instead of late fees under Government Code section 12591.1.</p> </div> </div> </div> <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingFC3"> <h4 class="panel-title"> <a role="button" data-toggle="collapse" data-parent="#accordion1" href="#collapseFC3" aria-expanded="true" aria-controls="collapseFC3"> <span class="list-num">3.</span><span class="list-q">What terms must be contained in a contract between a fundraising counsel and charitable organization?</span></a></h4> </div> <div id="collapseFC3" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingFC3"> <div class="panel-body"> <p>The written contract must contain or state: </p> <ul> <li>The legal name and address of the organizations as registered with the Registry of Charities and Fundraisers, unless the charitable organization is exempt from registration </li> <li>The charitable purpose for which the solicitation campaign is being conducted.</li> <li>The obligations of the fundraising counsel and charitable organization under the contract.</li> <li>A statement that the fundraising counsel will not solicit funds or property for charitable purposes or hire anyone else to do so.</li> <li>A statement that the fundraising counsel will not receive or control funds or property solicited for charitable purposes or hire anyone else to do so. </li> <li>A statement that the charitable organization exercises control and approves the content and frequency of solicitation.</li> <li>A clear statement of the fees and any other forms of compensation that will be paid to the fundraising counsel.</li> <li>The effective and termination date of the contract, and the date the solicitation will start.</li> <li>Provisions stating the charitable organization’s right to cancel the contract without liability for 10 days following the date the contract is executed; and the charity’s right to cancel the contract after the initial period by giving a 30-day notice and paying fundraising counsel for services provided by the fundraising counsel up to the effective date of the notice.</li> </ul> <p>For more detailed information about the mandatory contractual requirements, see Government Code section 12599.1, subdivision (f).</p> </div> </div> </div> <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingFC4"> <h4 class="panel-title"> <a role="button" data-toggle="collapse" data-parent="#accordion1" href="#collapseFC4" aria-expanded="true" aria-controls="collapseFC4"> <span class="list-num">4.</span><span class="list-q">Does a copy of the contract between the fundraising counsel and the charitable organization need to be filed with the Attorney General's Office?</span></a></h4> </div> <div id="collapseFC4" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingFC4"> <div class="panel-body"> <p>If there are common directors, officers and employees between the fundraising counsel and the charitable organization for which services are being provided a copy of the contract will need to be filed. Otherwise, there is no requirement that a copy of the contract be submitted unless specifically requested by the Attorney General's Office.</p> </div> </div> </div> <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingFC5"> <h4 class="panel-title"> <a role="button" data-toggle="collapse" data-parent="#accordion1" href="#collapseFC5" aria-expanded="true" aria-controls="collapseFC5"> <span class="list-num">5.</span><span class="list-q">What is the Notice of Intent to Provide Services Related to Charitable Solicitation and when is it required to be filed?</span></a></h4> </div> <div id="collapseFC5" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingFC5"> <div class="panel-body"> <p>Fundraising counsels for charitable purposes are required to file a Notice of Intent to Provide Services Related to Charitable Solicitation, not less than 10 working days before the start of each solicitation campaign, event or service. For campaigns to solicit aid for victims of emergency hardship or disasters, the notice must be filed not later than at the start of solicitation. See <strong>Form CT-11CF</strong>, <em>Notice of Intent to Provide Services Related to Charitable Solicitation</em>, available for download on this webpage.</p> <p>[See Government Code, section 12599.1, subdivision (e)]</p> </div> </div> </div> <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingFC6"> <h4 class="panel-title"> <a role="button" data-toggle="collapse" data-parent="#accordion1" href="#collapseFC6" aria-expanded="true" aria-controls="collapseFC6"> <span class="list-num">6.</span><span class="list-q">Can we direct the charity to pay certain vendors through a joint bank account?</span></a></h4> </div> <div id="collapseFC6" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingFC6"> <div class="panel-body"> <p>Fundraising counsel are prohibited from directly or indirectly controlling funds, assets, or property received as a result of the solicitation. This means that fundraising counsel cannot approve or veto the payment of expenses from any account to which funds received from a solicitation were deposited. A fundraising counsel cannot maintain an interest over a bank account or have any access over funds held by a caging company on behalf of the charitable organization. If the fundraising counsel has direct or indirect control over the funds or assets solicited, it will be considered a commercial fundraiser and additional registration and reporting requirements will apply. See Government Code section 12599.1, subdivision (a).</p> </div> </div> </div> <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingFC7"> <h4 class="panel-title"> <a role="button" data-toggle="collapse" data-parent="#accordion1" href="#collapseFC7" aria-expanded="true" aria-controls="collapseFC7"> <span class="list-num">7.</span><span class="list-q">Do the employees of a charity need to register as a fundraising counsel?</span></a></h4> </div> <div id="collapseFC7" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingFC7"> <div class="panel-body"> <p>No, the employees of a charitable organization are not included in the definition of a fundraising counsel. See Government Code section 12599.1, subdivision (b)(3).</p> </div> </div> </div> <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingFC8"> <h4 class="panel-title"> <a role="button" data-toggle="collapse" data-parent="#accordion1" href="#collapseFC8" aria-expanded="true" aria-controls="collapseFC8"> <span class="list-num">8.</span><span class="list-q">My company will write grants for the charity but will be paid less than $25,000. Do we need to register as a fundraising counsel?</span></a></h4> </div> <div id="collapseFC8" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingFC8"> <div class="panel-body"> <p>If the fundraising counsel make less than $25,000 in total annual gross compensation for acting as a fundraising counsel, it will not fall under the definition of a fundraising counsel for charitable purposes. See Government Code section 12599.1, subdivision (b)(6).</p> </div> </div> </div> <div class="panel panel-default"> <div class="panel-heading" role="tab" id="headingFC9"> <h4 class="panel-title"> <a role="button" data-toggle="collapse" data-parent="#accordion1" href="#collapseFC9" aria-expanded="true" aria-controls="collapseFC9"> <span class="list-num">9.</span><span class="list-q">My company will provide graphic and printing services. Do we need to register as a fundraising counsel?</span></a></h4> </div> <div id="collapseFC9" class="panel-collapse collapse" role="tabpanel" aria-labelledby="headingFC9"> <div class="panel-body"> <p>If your company only provides graphic services and does not consult on the content of the solicitation materials, then you may not need to register as a fundraising counsel. Likewise, if your company only provides printing services without consulting on the content of the solicitation materials, then you may not need to register as a fundraising counsel.</p> </div> </div> </div> </div> </div> </div> </div> </div> <div class="contact"> <a href="/charities/contacts/pf"><i class="fa fa-envelope fa-fw fa-2x svg-align" aria-hidden="true"></i><span class="text-svg">Contact the Professional Fundraisers Program</span></a> </div> </div></div></div> </div> </div> </div> </div> </div>    </section> <aside class="col-sm-3" role="complementary"> <div class="region region-sidebar-second"> <div id="block-block-216" class="block block-block"> <div class="content"> <div class='CS'> <h3>Charities</h3> <ul class="CSList"> <li><a href="/charities">Charities Home</a></li> <li><a href="/charities/initial-reg">Initial Registration</a></li> <li><a href="/charities/renewals">Annual Registration Renewal</a></li> <li><a href="/charities/delinquency">Delinquency</a></li> <li><a href="/charities/dissolution">Dissolution</a></li> </ul> <h3>Nonprofit Raffles</h3> <ul class="CSList"> <li><a href="/charities/raffles">Nonprofit Raffles Home</a></li> </ul> <h3>Professional Fundraisers</h3> <ul class="CSList"> <li><a href="/charities/pf">Professional Fundraisers Home</a></li> <li><a href="/charities/pf/cf">Commercial Fundraisers</a></li> <li><a href="/charities/pf/fc">Fundraising Counsels</a></li> <li><a href="/charities/pf/cc">Commercial Coventurers</a></li>  <li><a href="/charities/pf">Annual Reports</a></li> </ul> <h3>Fundraising Platforms</h3> <ul class="CSList"> <li><a href="/charities/pl">Charitable Fundraising Platforms Home</a></li> </ul> <h3>Nonprofit Health Facilities</h3> <ul class="CSList"> <li><a href="/charities/nonprofithosp">Nonprofit Health Facilities Home</a></li> </ul> <h3>Resources & Tools</h3> <ul class="CSList"> <li><a href="https://rct.doj.ca.gov/Verification/Web/Search.aspx?facility=Y" title="Registry Verification Search" target="_blank">Registry Search Tool</a></li> <li><a href="/charities/forms">Registry Forms</a></li> <li><a href="/charities/laws">Laws & Regulations</a></li> <li><a href="/charities/contacts">Registry Contacts</a></li> <li><a href="/charities/publications">Registry Publications</a></li> <li><a href="/charities/reports">Registry Reports</a></li> <li><a href="/charities/transactions">Nonprofit Transactions</a></li> <li><a href="/charities/public-notice">Public Notices</a></li> <li><a href="/charities/resources">Government & Research Links</a></li> </ul> <h3>File a Complaint</h3> <ul class="CSList"> <li><a href="/charities/complaints">Complaints Home</a> </ul> </div> </div> </div> </div> </aside>  </div> </div> <footer class="footer container"> <div class="region region-footer"> <div id="block-block-373" class="block block-block"> <div class="content"> <div class="row hidden-print"> <div class="container sect-separator"> <div class="col-xs-12 col-md-1"> <img class="footer-seal" src="/sites/default/themes/custom2017/oag2017/img/seal.png" alt="State of California Department of Justice - 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