A charitable organization may be legally responsible when those who solicit on its behalf engage in illegal or fraudulent practices. Yet even beyond ensuring that fundraising practices are lawful and honest, a charitable organization has many reasons to provide careful training and supervision to those who solicit donations on its behalf. The most obvious reason is that they are often a potential donor’s first, and sometimes only, direct contact with the organization. The organization should therefore ensure that its fundraisers are respectful of a donor’s concerns and do not use coercive or abusive language or strategies to secure contributions, misuse personal information about potential donors, pursue personal relationships that are subject to misinterpretation by potential donors, or mislead potential donors in other ways. All those who solicit contributions on the organization’s behalf, including volunteers, should  be provided with clear materials and instructions on what information to provide to prospective donors, including the organization’s name and address, how the donor can learn more about the organization, the purposes for which donations will be used, whether all or part of the donation may be tax-deductible, and who the donor can contact for further information.

• Fundraisers and telemarketers, whether on-staff or hired from the outside, represent the organization. Their training should include strict guidelines for appropriate behavior.
• When an outside firm or consultant is used to solicit contributions, a contract should define the responsibilities of both parties.

• FCC laws cover telemarketer activities. Rules cover when calls can be made, transparency about the purpose of the call, and accuracy of information.
• State charitable solicitation laws also provide rules affecting the use of telemarketers and other paid charitable solicitors. 
• Some states require that a contract between an organization and an outside fundraising firm must be in writing.

Most states require charitable organizations and professional fundraisers that solicit contributions in their jurisdiction to register and provide reports on their activities. Many states require a charitable organization that has paid solicitors or professional consultants working on its behalf to have a written contract with those fundraisers that delineates the specific purpose, time, and fees to be paid under the contract; the obligations of both the organization and the paid solicitor or consultant; whether the solicitor or consultant will have custody or control of contributions at any time and how such contributions will be transmitted to the organization; and how information about donors and potential donors will be treated by the
solicitor during and following completion of the contract. Some states impose fines on charitable
organizations that engage professional fundraisers to solicit contributions on their behalf if those fundraisers fail to register or provide reports as required.

Federal law requires for-profit firms soliciting for charitable nonprofits via telephone to follow
specific rules that include (1) disclosing the purpose of the call and the name of the organization for whom the call is made promptly and “in a clear and conspicuous manner,” and (2) honoring requests by the recipient of the call not to call again.¹ The law also prohibits professional solicitors from misrepresenting, directly or by implication, the nature or purpose of the charitable organization, the purpose for which the contribution will be used, the percentage of the contribution that will go to that purpose, and the organization’s or the solicitor’s affiliation with or sponsorship by a specific organization, business, individual or government entity.

1. What types of training do similar organizations provide to those who solicit funds on behalf of the organization?
2. What are the risks, both legally and to the reputation of our organization, when fundraisers are not well trained? 
3. What issues should be covered in a contract when an outside firm is used to raise funds?

27 Accuracy and Truthfulness of Fundraising Materials

28 Compliance with Donor’s Intent

30 Gift Acceptance Policies