Virginia Code 57-54: Contracts between charitable or civic organizations and professional fund-raising counsel or professional solicitors
A. Every contract or agreement between professional fund-raising counsel and a charitable or civic organization shall be in writing and shall be filed with the Commissioner within 10 days after such contract or written agreement is entered into.
Terms Used In Virginia Code 57-54
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Civic organization: means any local service club, veterans post, fraternal society or association, volunteer fire or rescue group, or local civic league or association of 10 or more persons not organized for profit but operated exclusively for educational or charitable purposes as defined in this section, including the promotion of community welfare, and the net earnings of which are devoted exclusively to charitable, educational, recreational, or social welfare purposes. See Virginia Code 57-48
- Commissioner: means the Commissioner of Agriculture and Consumer Services or a member of his staff to whom he may delegate his duties under this chapter. See Virginia Code 57-48
- Contract: A legal written agreement that becomes binding when signed.
- Contribution: means any gift, bequest, devise, or other grant of any money, credit, financial assistance, or property of any kind or value, including the promise to contribute, except payments by the membership of an organization for membership fees, dues, fines, or assessments, or for services rendered to individual members, and except money, credit, financial assistance, or property received from any governmental authority. See Virginia Code 57-48
- in writing: include any representation of words, letters, symbols, numbers, or figures, whether (i) printed or inscribed on a tangible medium or (ii) stored in an electronic or other medium and retrievable in a perceivable form and whether an electronic signature authorized by Chapter 42. See Virginia Code 1-257
- Professional fund-raising counsel: means any person who for a flat fixed fee under a written agreement plans, conducts, manages, carries on, advises, or acts as a consultant, whether directly or indirectly, in connection with soliciting contributions for, or on behalf of, any charitable or civic organization, but who actually solicits no contributions as a part of such services. See Virginia Code 57-48
- Professional solicitor: means any person who, for a financial or other consideration, solicits contributions for, or on behalf of, a charitable or civic organization, whether such solicitation is performed personally or through his agents, servants, or employees or through agents, servants, or employees who are specially employed by or for a charitable or civic organization and are engaged in the solicitation of contributions under the direction of such person or any person who, for a financial or other consideration, plans, conducts, manages, carries on, advises, or acts as a consultant to a charitable or civic organization in connection with the solicitation of contributions but does not qualify as a professional fund-raising counsel. See Virginia Code 57-48
- State: when applied to a part of the United States, includes any of the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, and the United States Virgin Islands. See Virginia Code 1-245
B. Every contract, or a written statement of the nature of the arrangement to prevail in the absence of a contract, between a professional solicitor and a charitable or civic organization shall be filed with the Commissioner at least 10 days prior to commencement of the contract.
C. All agreements and arrangements between professional fund-raising counsel and charitable or civic organizations shall be reduced to writing before executed or acted upon.
D. Any contract between a professional solicitor and a charitable or civic organization shall specify the percentage of gross contributions that the charitable or civic organization will receive or the terms upon which a determination can be made as to the amount of the gross revenue from the solicitation campaign that the charitable or civic organization will receive. If a reasonable estimate is used to make such determination, the contract shall clearly disclose the assumptions or the formula upon which the estimate is based; however, if a fixed percentage is used, such percentage shall exclude any amount that the charitable or civic organization is to pay as an expense of the solicitation campaign, including the cost of any merchandise or services sold. The professional solicitor shall, at the conclusion of a charitable appeal, provide to the charitable or civic organization a final accounting of all expenditures. Such final accounting may not be used in violation of any state or federal trade secret laws. The contract shall disclose the average percentage of gross contributions collected on behalf of charitable or civic organizations that such organizations received from the professional solicitor for the three years preceding the year in which the contract was formed. The contract shall also specify that at least every 90 days the professional solicitor shall provide the charitable or civic organization with access to and use of all information in the professional solicitor’s possession concerning contributors, including the name, mailing address, email address, and telephone number of each contributor and the date and amount of each contribution. A professional solicitor shall not restrict a charitable or civic organization’s use of any such contributor information.
1974, c. 574; 1979, c. 595; 1983, c. 374; 1988, c. 322; 2023, c. 289.