What is a Michigan Professional Fundraiser Bond?
In the State of Michigan, professional fundraisers (both public safety organizations and all other charitable organizations) must furnish a surety bond.
The Professional Fundraiser Bond for public safety organizations is designed to prevent any non-compliance or violation of the Public Safety Solicitation Act 298 of 1992.
The Professional Fundraiser Bond for all other charitable institutions guarantees against any malfeasance or misfeasance in the conduct of solicitations.
Professional fundraisers refer to a person(s) who is engaged in soliciting finances or other property for charitable/philanthropic purposes.
What are the bond conditions?
The bonds must be issued by a Surety accepted and authorized to transact business in the State of Michigan.
For public safety organizations:
- The Principal seeking the bond must be a professional fundraiser per the definition of the term in Act 298 of the Public Acts of 1992.
- If the Principal faithfully conforms to and abides by the provisions of 1992 PA 298, then the obligation will be null and void. Otherwise, it shall remain in full force and effect.
- The Surety will be required to make reimbursement only after a final decision of the Attorney General or final judgment has been rendered in the district, common pleas, circuit, or municipal court.
- Coverage will be continuous and remain in full force and effect until canceled by the Surety or Principal.
For all other charitable organizations:
- The Principal must be a professional fundraiser per the definition of the term in Act 169 of the Public Acts of 1975.
- If the Principal is not found guilty to commit acts of malfeasance or misfeasance, then the obligation will be void; otherwise, it will remain in full force and effect.
- The Principal must annually file with the Attorney General a statement under Act 169 of the Public Acts of 1975 relating to past and current contracts for solicitations.
- The books and records of the Principal upon the bond will be open to inspection during business hours to the Surety and the Attorney General.
Cancellation of both bonds may be made by either Surety or Principal giving 90 days written notice by certified mail to the other party and the Charitable Trust Section, Department of Attorney General.
What is the bond amount?
For public safety organizations: $25,000
For all other fundraising/charitable organizations: $10,000
The cost of the bond is a percentage of the bond amount. The cost typically ranges between 1% and 5% of the bond amount, which will serve as your bond premium.
How do I obtain a Professional Fundraiser Bond?
To secure this type of bond, the professional fundraising applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond. For an accurate estimate of your bond price, get a FREE quote HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will usually evaluate your credit score to gauge your bonding capacity.
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
Talk to us and let us get you bonded right away!