A. All contracts entered into by a charitable organization with a professional fundraiser or professional fundraising counsel for charitable solicitations or fundraising services shall be in writing. The charitable organization and the professional fundraiser or professional fundraising counsel shall each keep and maintain such contracts on file in their principal offices for a period of five (5) years from the date that the contract was executed. These contracts shall be available for inspection by the Office of the Attorney General.

B. The contract shall clearly state:

1. The respective obligations of each party;

2. The compensation arrangement. If the compensation payable to the professional fundraiser is based on a percentage or formula, the contract shall state the percentage of the gross revenue derived in connection with the solicitation that the charitable organization will receive or other formula for payment;

3. Any goods or services to be offered to the public;

4. The geographic area where the campaign will take place;

5. In the case of a contract with a professional fundraiser, the period of time or periods during which solicitations are to be conducted, which may be specific periods, estimated or projected time frames, or continuous, and which may involve different periods for different types of solicitations by the same charitable organization;

6. A fundraising budget, if available; and

7. Provisions for a final accounting of contributions raised and expenses incurred.

The contract shall also describe in reasonable detail the services to be provided by the professional fundraiser and shall clearly state whether the professional fundraiser may, at any time, have custody, possession or control of any contributions.

Added by Laws 1959, p. 90, § 8, emerg. eff. May 8, 1959. Amended by Laws 1978, c. 244, § 6, eff. July 1, 1978; Laws 1984, c. 79, § 5, emerg. eff. April 3, 1984; Laws 1994, c. 235, § 13, eff. Sept. 1, 1994; Laws 1997, c. 334, § 5, eff. July 1, 1997; Laws 1999, c. 421, § 6, eff. Nov. 1, 1999; Laws 2010, c. 460, § 7, eff. July 1, 2011.