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Professional Fundraiser
Practical Law Glossary Item 8-502-5124 (Approx. 2 pages)
Glossary
Professional Fundraiser
An individual or company that, for compensation or other consideration, either:
- Solicits or helps to solicit contributions for or on behalf of another person, business, or charity.
- Engages in, or represents to others as being engaged in, the business of soliciting contributions.
Some states regulate professional fundraisers that participate in charitable cause marketing campaigns, regardless of whether the fundraiser is engaging in the solicitation directly or under the direction of someone else. In these states, the following typically are not considered professional fundraisers:
- An officer or regular, non-temporary employee of a charity, provided that this person's salary or other compensation is not computed on the basis of funds that are raised.
- Someone who solicits political campaign contributions on behalf of candidates for public office or ballot initiatives.
- An attorney, investment counselor, or banker who advises a person or entity to make a charitable contribution (but some states may regulate these types of professionals if they manage or maintain custody or control of the charitable contributions at any time).For more information on the regulation of cause marketing activities and best practices in setting up a cause marketing arrangement, see Cause-Related Marketing by For-Profit Companies Checklist.