The Vermont Statutes Online

Title 9 : Commerce and Trade

Chapter 063 : Consumer Protection

Subchapter 002 : CHARITABLE SOLICITATIONS

• § 2472. Contracts between paid fundraisers and charitable organizations

  (a) Prior to soliciting in this State, a paid fundraiser shall enter into a written contract with the charitable organization on whose behalf solicitations are to be made. The contract shall contain the following:

  (1) A minimum percentage of the gross receipts of the fundraising campaign to be paid to the charitable organization.

  (2) An itemized description of all expenses, commissions, and other amounts that are to be deducted from the receipts of the fundraising campaign, how they are to be calculated, and to whom they are to be paid.

  (3) An authorized signature of the charitable organization indicating approval of the terms of the contract.

  (4) The following statement in immediate proximity to the signature of the charitable organization, in a minimum size of 10 points:

  Chapter 63 of Title 9 of the Vermont Statutes Annotated requires a paid fundraiser to provide the fundraiser’s charitable sponsor, within 60 days after the end of a solicitation campaign, with a statement setting out the name and address of each contributor and the amount of the contribution; the amount of the gross receipts; and an itemized list of all expenses, commissions, and other costs incurred in the campaign. The law also gives charities other rights, including the right to cancel this contract or to recover damages, or both, in certain circumstances. Contact the Vermont Attorney General for further information.

  (5) A provision that prohibits the paid fundraiser from restricting in any way the use by the charitable organization of the list of donors to the campaign.

  (b) Prior to commencing a solicitation, a paid fundraiser shall:

  (1) Provide to the charitable organization on whose behalf solicitations are to be made, the wording to be used by the paid fundraiser when conducting written solicitations and a copy of any script to be used in conducting telephone or in-person solicitation.

  (2) Obtain written approval from the charitable organization for the use of such wording and script.

  (c) A charitable organization may rescind any contract with a paid fundraiser and have all contributions in the possession of the paid fundraiser returned to the contributors if the contract or the paid fundraiser does not comply with this subchapter.

  (d) Upon application for State funds received through a grant or contract, a charitable organization shall disclose:

  (1) the actual percentage of gross receipts of any fundraising campaign paid to the charitable organization within the two previous fiscal years; and

  (2) the minimum contracted percentage of gross receipts to be paid by a paid fundraiser to the charitable organization in any current or known future fundraising campaign. (Added 1989, No. 232 (Adj. Sess.), § 2; amended 2003, No. 51, § 2.)