What is a Professional Fundraiser Bond?
A professional fundraiser surety bond is a bond required of professional fundraisers and solicitors in over 15 states before they are allowed to raise funds for commercial or charitable purposes. This includes the management of the funds that have been received, as well as advertising the sale of goods or services with a charitable purpose.
The professional solicitor bond, as it’s sometimes called, guarantees that fundraisers will raise, manage, allocate, forward, and use the funds they have received for the purposes they have been raised for. Typically, this bond is a prerequisite to getting a professional fundraiser license, and guarantees that these individuals or businesses comply with each state’s specific laws and regulations concerning the raising of funds.
The bond also guarantees compensation in instances in which funds have been misappropriated or mismanaged at the expense of the public, or the charitable organization which was due to receive them. In those instances, a claim made against the bond can compensate for the losses suffered.
This means that the fundraiser bond is a type of agreement between the professional fundraiser (the bond principal), the charity or the state (the bond obligees), and the surety bond company that issues and backs the bond. When a claim is filed against the bond, the surety investigates the situation. If a violation is determined, the surety pays compensation to the obligees up to the full amount of the bond.
When a compensation is paid, the bond principal must repay the surety for its financial backing. Because bond claims can be long and difficult to deal with, bond principals should also strive to avoid causes for claims and comply with state regulations at all times.
See below for more information regarding the cost of your professional fundraiser bond.
Professional Fundraiser Bond Cost
The cost of your professional solicitor bond is a percentage of the full amount of the bond you are required to obtain. The full amount is determined by each state individually, and ranges between $10,000 and $25,000 in most states– with the exception of Florida, where the amount is $50,000.
The percentage or rate you need to pay to obtain your bond depends on your personal financial status, with your credit score having the most impact on your cost. Financial statements and assets also play an important part in influencing your rate, but less so than credit score.
Applicants with a high credit score can expect to be offered a standard market rate that ranges between 0.75%-2.5% of the full amount. So, to get a $10,000 professional fundraiser bond at standard market rates, you will likely pay between $100 and $250.
Your choice of surety bond agency is also instrumental in influencing your bond cost. Surety bond agencies differ in their access to markets and rates, depending on which surety bond companies they work with.
Bryant Surety Bonds only works with A-rated and T-listed companies. Those are the best and most secure companies nationwide. At the same time, they provide us with access to some of the lowest rates possible, which we can then offer to our clients.
Bad Credit Bonds
Professional fundraiser bonds are available to bad credit applicants as well. While some sureties may turn down applicants with less than perfect credit, Bryant Surety Bonds has developed a program to support them in getting bonded, regardless of their credit score.
Our Bad Credit Program enables bad-credit applicants to acquire the bond they need to get their fundraiser license and do business. This gives applicants a chance to work on their credit score and improve their finances, in order to qualify for a better rate next time they apply for a bond.
Due to the higher risk involved in bonding such applicants, rates under this program are slightly higher. How much exactly you will need to pay to obtain your bad credit bond depends on your unique circumstances, but we are dedicated to always finding the best rates for all our customers.
How to Get Your Professional Fundraiser Bond
Getting your bond is simple. Just submit your online surety bond application to get started. If you’re not ready to get a bond but would still like to get a quote– simply submit an application as well and we’ll contact you with your entirely free quote. Processing times for these bonds are minimal, so you can expect to hear from us very soon.
To find out more about the fundraiser bonding requirements in your state, call us at (866)-450-3412. Our surety bond professionals are equipped to answer all your questions regarding these bonds and assist you in your application, if needed. We would be happy to help.