N.J. Admin. Code § 13:48-9.1

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:48-9.1 - Contract, service agreement and report requirements for fund raising counsel and independent paid fund raiser

(a) All fund raising counsel and independent paid fund raisers shall file with the Attorney General a copy of any contract with a charitable organization, together with a contract filing form supplied by the Division, at least 10 days prior to the performance of any service within this State. An additional copy of the contract shall be filed by the charitable organization, which obligation cannot be delegated to the fund raising counsel or independent paid fund raiser.

(b) Every contract shall contain a description of the relationship between the charitable organization and the fund raising counsel or the independent paid fund raiser and shall include the following information:

1. A statement of the respective obligations of the fund raising counsel or independent paid fund raiser and the charitable organization;

2. A clear statement of the fees or rate that will be paid to the fund raising counsel or independent paid fund raiser;

3. The projected commencement and termination dates of the solicitation campaign;

4. A statement as to whether the fund raising counsel or independent paid fund raiser will have or intends to have custody, control, possession or access to contributions;

5. A statement as to the guaranteed minimum percentage of the net proceeds from contributions that will be retained by the charitable organization, if any, or if the solicitation involves the sale of goods, services or tickets to a fund raising event, the percentage of the purchase price, if any, that will be retained by the charitable organization. Any stated percentage shall exclude any amount that the charitable organization is to pay as fund raising costs; and

6. A statement as to the percentage of the gross revenue from which the fund raising counsel or independent paid fund raiser will be compensated. If the compensation of the fund raising counsel or independent paid fund raiser is a flat fee, which is not contingent upon the number of contributions or the amount of revenue received, the compensation shall be expressed as a reasonable estimate of the percentage of the anticipated gross revenue and the contract shall clearly disclose the assumptions upon which the estimate is based. If the compensation of the fund raising counsel or independent paid fund raiser is calculated on the basis of a rate and time, the statement shall include a reasonable estimate of the total fee and the contract shall clearly disclose the assumptions upon which the estimate is based. The stated assumptions shall be based upon all of the relevant facts known to the fund raising counsel or independent paid fund raiser regarding the solicitation to be conducted on behalf of the charitable organization.

(c) Every contract shall be signed by two authorized officers of the charitable organization, one of whom must be a member of the organization's governing body, and the authorized contracting officer of the fund raising counsel or independent paid fund raiser.

(d) Every contract filed by the fund raising counsel or independent paid fund raiser shall be accompanied by the fee specified in 13:48-2.1(a)9.

(e) If the fund raising counsel or independent paid fund raiser at any time has or intends to have custody, control, possession or access to the charitable organization's solicited contributions, the contract shall also include:

1. A statement as to the guaranteed minimum percentage of the gross receipts from contributions that will be remitted to the charitable organization, if any, or if the solicitation involves the sale of goods, services or tickets to a fund raising event, the percentage of the purchase price, if any, that will be remitted to the charitable organization. Any stated percentage shall exclude any amount that the charitable organization is to pay as fund raising costs;

2. The bank branch, address and each account number where all monies will be deposited;

3. The mailing address or addresses that will receive any contributions;

4. The name and address of any caging agent or escrow agent retained in connection with the performance of the contract; and

5. The names of the individuals who will be authorized signatories for the accounts where all the monies are deposited.

(f) A fund raising counsel or an independent paid fund raiser that at any time has or intends to have custody, control, possession or access to a charitable organization's solicited contributions shall file a report on forms prescribed by the Attorney General as follows:

1. The report shall be filed within 40 days after the expiration of the contract;

2. For campaign contracts lasting more than 12 months, the report must be filed within 40 days of the end of each of the charitable organization's fiscal years;

3. Upon the completion of a campaign contract lasting more than 12 months, a final report shall be filed within 40 days after the expiration of the contract or service agreement;

4. Any financial campaign report filed pursuant to this subchapter shall contain the following information:

i. Gross revenues;

ii. An itemization of all expenses incurred;

iii. The mailing address or addresses to which the contributions were directed;

iv. The name and address of any company or any individuals who picked up any contributions;

v. The bank branch, address and account numbers where all monies were deposited;

vi. The names of the individuals who are or were signatories on the accounts where all monies were deposited; and

vii. Any other information as may be requested of the fund raising counsel or independent paid fund raiser.

5. This report shall be signed by an authorized official from the fund raising counsel or independent paid fund raiser;

6. In addition, the report shall be reviewed and signed by an authorized official from the charitable organization; and

7. The financial campaign report shall be accompanied by the fee specified in N.J.A.C. 13:48-2(a)11.

(g) A fund raising counsel or independent paid fund raiser that is not required to file a report pursuant to (f) above, shall file with the Division the information it receives or obtains from the charitable organization that is used to calculate the independent paid fund raiser's or fund raising counsel's compensation for the charitable campaign. The information submitted shall include the gross amount taken in by the charitable campaign and the net amount retained by the charitable organization and shall comply with the following requirements on a form prescribed by the Division:

1. The information shall be filed within 40 days after the expiration of the contract;

2. For campaign contracts lasting more than 12 months, the information must be filed within 40 days of the end of each of the charitable organization's fiscal years during which the campaign was conducted;

3. Upon the completion of a campaign contract lasting more than 12 months, the information must be filed within 40 days after the expiration of the contract or service agreement;

4. This report shall be signed by an authorized officer from the independent paid fund raiser or fund raising counsel;

5. The report shall be reviewed and signed by an authorized officer from the charitable organization; and

6. The financial campaign report shall be accompanied by the fee specified in 13:48-2.1(a).

N.J. Admin. Code § 13:48-9.1

Amended by R.2011 d.061, effective 2/22/2011.
See: 42 N.J.R. 1676(a), 43 N.J.R. 439(a).
Section was "Contract, service agreement, and report requirements for fund raising counsel and independent paid fund raiser". Rewrote (a), (b)5 and (b)6; in the introductory paragraph of (b) and in (c) and (d), substituted "Every" for "The"; in the introductory paragraph of (b), inserted "the" preceding "independent"; in (b)1, substituted "fund raising counsel or independent paid" for professional"; in (b)2, substituted "that" for "which" and inserted "paid"; in (b)4, inserted "or intends to have" and "possession"; deleted (b)7 through (b)10; in (c), substituted "officers" for "officials"; added new (e) and (g); recodified former (e) as (f); in the introductory paragraph of (f), inserted "that at any time has or intends to have custody, control, possession or access to a charitable organization's solicited contributions"; and in (f)4iii, inserted "to" and "were directed", and deleted "received" following "which".