Learn more about professional fundraiser bonds, and apply today. Absolute Surety offers surety bonds nationwide through a convenient online application system.
What Are Professional Fundraiser Bonds?
Fundraising is an activity rife with opportunities for personal gain through professional misconduct. Consequently, in many states, the fundraising profession is regulated through licensing and bonding. A professional fundraiser bond is a type of license and permit bond that is often mandated as a condition for obtaining a license to operate as a professional fundraiser within a given state.
These bonds provide financial protection for the state, the organizations that employ professional fundraisers, and consumers who make donations.
Who Needs Them?
Professional fundraisers applying for licensing in states that require them to be bonded must submit proof of bonding along with their license application.
How Do They Work?
Any license bond is an agreement between three parties: the obligee requiring the bond, the principal purchasing the bond, and the surety underwriting and issuing the bond. In purchasing the bond, the principal is pledging to operate in a lawful and ethical manner, in accordance with applicable laws and in full compliance with the terms of the bond.
Any malfeasance or negligent acts by the principal resulting in financial harm to any party covered under the terms of the bond can result in a claim against the bond. One example would be making material misrepresentations about the fundraising purpose that leads to a donor contributing funds to a that they would not otherwise have supported. Other common claims result from the mishandling or theft of donated money.
The surety will investigate each claim and ensure its validity before making any payment to the claimant. Once a claim has been paid out, the principal must reimburse the surety for that amount. The principal in a surety bond agreement is always ultimately responsible for making the surety whole.
What Do They Cost?
Each state sets its own required amount for professional fundraiser bonds, which is usually between $10,000 and $50,000. The surety assigns each bond applicant a premium that is a small percentage of this bond amount. People with good credit and no reason to believe they will incur claims against the bond usually pay a standard market rate or 4% or less.
Use our convenient online system to apply for a fundraiser bond today.
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