What is a California Commercial Fundraiser Bond for Charitable Purposes?
In the State of California, the State Attorney General requires commercial fundraisers to carry a bond of $25,000, which helps to ensure that they abide by the laws and regulations surrounding commercial fundraising.
Who Needs a California Commercial Fundraiser Bond?
Anyone who wishes to conduct commercial fundraising for charitable purposes will require a commercial fundraising bond. As defined by California Government Code Section 12599, commercial fundraising is any individual, corporation, association (incorporated or not incorporated), or any other legal entity that:
- Solicits funds, assets, or property for charitable purposes
- Receives funds, assets, or property that was solicited for charitable purposes
- Employs, procures, or engages any compensated person to solicit, receive, or control funds, assets, or property for charitable purposes
Why Do I Need a California Commercial Fundraiser Bond?
A California commercial fundraising bond for charitable purposes protects the general public from unethical practices, including:
- Misleading people into believing that money or assets are being collected for charitable purposes when they are, in fact, being gathered for other purposes
- Using a charity’s name without written consent to do so
- Using any device, technology, scheme, or gimmick to defraud
- Failing to produce to the Attorney General with proper financial documentation and records of the organization
To be legally collecting donated finances or property on behalf of a charitable organization, you must obtain a California commercial fundraising bond.
How Much Does a California Commercial Fundraiser Bond Cost?
The California State Attorney General requires a $25,000 bond for those who wish to perform commercial fundraising for charity. However, the bond is subject to underwriting consideration, meaning that the price will be dependant upon the principal’s credit score. Those with a high credit score could pay as little as 1% or $250 for the California commercial fundraising bond.
Get Started Today!
To receive proper licensing to perform commercial fundraising, you must first secure a California commercial fundraising bond. Don’t delay your application. Begin by getting your quote today.