Professional Fundraiser Bonds – An Overview

Professional fundraiser bonds are essential for protecting the interests of both donors and charitable organizations. These bonds ensure that professional fundraisers adhere to ethical standards and fulfill their contractual obligations, including accurately reporting donations received and using them as intended. According to a report by the National Association of State Charity Officials (NASCO), there were over 1.5 million registered charities in the United States in 2016, which collectively raised over $400 billion in contributions. With such a vast amount of money involved, it is crucial to have measures in place to prevent fraud or mismanagement.

In some states, these are required by law for individuals or companies that solicit donations on behalf of nonprofit organizations. For example, California requires fundraisers who raise more than $25,000 annually for charities to obtain a bond worth at least $25,000 before beginning any solicitation activities. Failure to comply with this requirement can result in fines or legal action. Aside from compliance with state laws, obtaining a professional fundraiser bond can also boost an organization's credibility and reputation among potential donors. Knowing that their donations will be handled responsibly can give donors peace of mind and increase their willingness to contribute. For more information, please refer to the info-graphic below.