What is a Wisconsin Fundraising Counsel Bond?
Fundraising counsels in the State of Wisconsin are required to maintain a surety bond.
The Fundraising Counsel Bond, also known as Paid Solicitor Bond or Charitable Solicitation Bond, protects charitable organizations ensuring that solicited funds will not be mismanaged in the planning, management, or execution of a solicitation or charitable sales promotion.
The bond also guarantees that solicitation activities will be conducted in an ethical and fair manner.
According to the Wisconsin Stats s. 202.11(6), a fundraising counsel is any person that “plans, manages, advises, consults or prepares material for a charitable organization, but who does not solicit and who does not employ, engage, or provide any person who is paid to solicit contributions.”
A fundraising counsel does not include “an attorney, investment counselor, or employee of a financial institution who, in the normal course of his or her work as an attorney, investment counselor, or employee of a financial institution, advises a person to make a contribution, or a bona fide employee, volunteer, or salaried officer of a charitable organization.”
Why do you need a Fundraising Counsel Bond?
A Fundraising Counsel Bond protects the charitable institution and the general public by prohibiting fundraising counsels to:
- performing unfair or deceptive acts and practices;
- using a charity’s name, symbol, or statement to confuse or mislead a person being solicited;
- implying that a contribution is made on behalf of a charity’s name without written consent to do so;
- failing to apply contributions ethically and consistently with the purposes expressed in the solicitation;
- using the fact of registration to lead any person to believe that the registration constitutes an endorsement or approval by the state;
- and representing in any manner that registration constitutes an endorsement or approval by the Wisconsin Department of Safety and Professional Services.
What is the bond amount?
A fundraising counsel is required to maintain a $20,000 surety bond.
A professional fundraiser is required to maintain either a $20,000 bond if they have custody of any contributions or a $5,000 bond if they don’t maintain custody of contributions.
The bond cost is a percentage of the bond amount, which can range from 1%-5%. Your financials, which will be evaluated by a surety underwriter, will help determine your bond cost.
How can I obtain a Fundraising Counsel Bond?
The surety bond must be issued by a Surety Company that is authorized to conduct business in the State of Wisconsin.
Here’s a step-by-step bonding process that we have made easier so that you can get your bond in no time:
You must first apply for this type of surety bond. If you are ready to do this now, you may APPLY HERE!
Our expert surety bond agent will guide you through the entire process – from the time you have applied until the bond is issued to you.
Next, you will be asked to submit a few critical information that our underwriter will need to assess the following:
- Your job or business history
- Your credit score
- Your financial strength
- Your copy of the bond form (which can be obtained from the State Department of Safety and Professional Services)
To avoid any delays, make sure that you have gathered the right information needed before submitting.
Once the underwriting process is done, we will immediately issue your bond and send it to you right away!
Call us now at 800-333-7800!