Q:
Please clarify who can make the "ask"
for organizations seeking funding. Perhaps
it would be most helpful if you could explain
the difference in the roles, responsibilities
and limitations of independent Professional
Fundraising Consultant/Grantwriters, Professional
Fundraising Solicitors and the nonprofit organizations
themselves.
A:
Each state regulates this. In Florida, the
roles, responsibilities and limitations are
defined by Chapter 496 of the Florida Statutes
and handled – like most other nonprofit
corporation issues here – by the Florida
Department of Agriculture and Consumer Services.
The
Statute begins by defining the “ask”
or “solicitation” as the request
for money, property, financial assistance
or any other thing of value. It continues
by clarifying that the “ask” can
be direct or indirect, oral or written, successful
or not, and includes publicizing the need
for contributions and even attempting to sell
things in order to support a charitable purpose.
The application for grants is excluded from
this definition as long as the application
is made either to a government entity or an
organization that is exempt from paying federal
income taxes.
Only
an organization itself and professional solicitors
are able to actually solicit contributions.
Professional fundraising consultants may offer
advise, plan, manage, or conduct a campaign,
even prepare materials for a solicitation.
But they may not actually make a solicitation,
hire anyone else to make a solicitation or
have custody or control of an organization’s
funds at any time.
Nonprofits
– other than bona fide religious or
educational institutions, government agencies
or political groups which are exempt –
must be registered with the State in order
to solicit funds from the public. So must
anyone who accepts compensation for the help
they provide to nonprofits regarding the solicitation
of funds. Volunteers, employees of a nonprofit
and attorneys, investment counselors or bankers
who advise people to make charitable contributions
as part of their professional responsibilities
do not need to register.
Registration,
which is required annually, can be done online.
To register or to get more information, go
to http://www.doacs.state.fl.us/onestop/forms/10105.pdf.
Professional fundraising consultants and professional
solicitors alike must also forward a copy
of all their contracts to the State prior
to beginning any work. For consultants this
is 5 days prior and for solicitors it is 15
days prior. In addition, professional solicitors
must provide a surety bond payable to the
State in the sum of $50,000.
