Current through Register Vol. 56, No. 18, September 16, 2024
(a) All fund raising
counsel and independent paid fund raisers shall file with the Attorney General a
copy of any contract with a charitable organization, together with a contract filing
form supplied by the Division, at least 10 days prior to the performance of any
service within this State. An additional copy of the contract shall be filed by the
charitable organization, which obligation cannot be delegated to the fund raising
counsel or independent paid fund raiser.
(b) Every contract shall contain a description of
the relationship between the charitable organization and the fund raising counsel or
the independent paid fund raiser and shall include the following information:
1. A statement of the respective obligations of
the fund raising counsel or independent paid fund raiser and the charitable
organization;
2. A clear statement of
the fees or rate that will be paid to the fund raising counsel or independent paid
fund raiser;
3. The projected
commencement and termination dates of the solicitation campaign;
4. A statement as to whether the fund raising
counsel or independent paid fund raiser will have or intends to have custody,
control, possession or access to contributions;
5. A statement as to the guaranteed minimum
percentage of the net proceeds from contributions that will be retained by the
charitable organization, if any, or if the solicitation involves the sale of goods,
services or tickets to a fund raising event, the percentage of the purchase price,
if any, that will be retained by the charitable organization. Any stated percentage
shall exclude any amount that the charitable organization is to pay as fund raising
costs; and
6. A statement as to the
percentage of the gross revenue from which the fund raising counsel or independent
paid fund raiser will be compensated. If the compensation of the fund raising
counsel or independent paid fund raiser is a flat fee, which 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 the anticipated
gross revenue and the contract shall clearly disclose the assumptions upon which the
estimate is based. If the compensation of the fund raising counsel or independent
paid fund raiser is calculated on the basis of a rate and time, the statement shall
include a reasonable estimate of the total fee 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 fund raising counsel or
independent paid fund raiser regarding the solicitation to be conducted on behalf of
the charitable organization.
(c) Every contract shall be signed by two
authorized officers of the charitable organization, one of whom must be a member of
the organization's governing body, and the authorized contracting officer of the
fund raising counsel or independent paid fund raiser.
(d) Every contract filed by the fund raising
counsel or independent paid fund raiser shall be accompanied by the fee specified in
13:48-2.1(a)9.
(e) If the fund raising counsel or independent
paid fund raiser at any time has or intends to have custody, control, possession or
access to the charitable organization's solicited contributions, the contract shall
also include:
1. A statement as to the guaranteed
minimum percentage of the gross receipts from contributions that will be remitted to
the charitable organization, if any, or if the solicitation involves the sale of
goods, services or tickets to a fund raising event, the percentage of the purchase
price, if any, that will be remitted to the charitable organization. Any stated
percentage shall exclude any amount that the charitable organization is to pay as
fund raising costs;
2. The bank branch,
address and each account number where all monies will be deposited;
3. The mailing address or addresses that will
receive any contributions;
4. The name
and address of any caging agent or escrow agent retained in connection with the
performance of the contract; and
5. The
names of the individuals who will be authorized signatories for the accounts where
all the monies are deposited.
(f) A fund raising counsel or an independent paid
fund raiser that at any time has or intends to have custody, control, possession or
access to a charitable organization's solicited contributions shall file a report on
forms prescribed by the Attorney General as follows:
1. The report shall be filed within 40 days after
the expiration of the contract;
2. For
campaign contracts lasting more than 12 months, the report must be filed within 40
days of the end of each of the charitable organization's fiscal years;
3. Upon the completion of a campaign contract
lasting more than 12 months, a final report shall be filed within 40 days after the
expiration of the contract or service agreement;
4. Any financial campaign report filed pursuant to
this subchapter shall contain the following information:
i. Gross revenues;
ii. An itemization of all expenses
incurred;
iii. The mailing address or
addresses to which the contributions were directed;
iv. The name and address of any company or any
individuals who picked up any contributions;
v. The bank branch, address and account numbers
where all monies were deposited;
vi. The
names of the individuals who are or were signatories on the accounts where all
monies were deposited; and
vii. Any
other information as may be requested of the fund raising counsel or independent
paid fund raiser.
5. This
report shall be signed by an authorized official from the fund raising counsel or
independent paid fund raiser;
6. In
addition, the report shall be reviewed and signed by an authorized official from the
charitable organization; and
7. The
financial campaign report shall be accompanied by the fee specified in N.J.A.C.
13:48-2(a)11.
(g) A fund
raising counsel or independent paid fund raiser that is not required to file a
report pursuant to (f) above, shall file with the Division the information it
receives or obtains from the charitable organization that is used to calculate the
independent paid fund raiser's or fund raising counsel's compensation for the
charitable campaign. The information submitted shall include the gross amount taken
in by the charitable campaign and the net amount retained by the charitable
organization and shall comply with the following requirements on a form prescribed
by the Division:
1. The information shall be filed
within 40 days after the expiration of the contract;
2. For campaign contracts lasting more than 12
months, the information must be filed within 40 days of the end of each of the
charitable organization's fiscal years during which the campaign was
conducted;
3. Upon the completion of a
campaign contract lasting more than 12 months, the information must be filed within
40 days after the expiration of the contract or service agreement;
4. This report shall be signed by an authorized
officer from the independent paid fund raiser or fund raising counsel;
5. The report shall be reviewed and signed by an
authorized officer from the charitable organization; and
6. The financial campaign report shall be
accompanied by the fee specified in
13:48-2.1(a).
