When is a fundraising agreement required?
A fundraising agreement is a written agreement (including electronic versions), that must be in place between a benevolent body and a professional fundraiser or commercial participator if:
For example, a professional fundraiser may be a company which is paid to conduct face to face or telephone fundraising on behalf of a charity. The definition of a professional fundraiser does not include employees or volunteers of a charity.
For example, a commercial participator may be:
What information must the fundraising agreement include?
Fundraising agreements must contain the following:
|the name and address of each of the parties to the agreement|
|the date the fundraising agreement was signed|
|the period which the fundraising agreement covers|
|any conditions about the termination of or changes to the fundraising agreement prior to the agreed end date|
|the main objectives of the fundraising agreement and the fundraising methods which will be used to achieve them|
|if the fundraising agreement relates to more than one benevolent body, details of how the parties will decide the proportion of fundraised monies each will receive|
|detail of how the parties will determine the amount of remuneration or expenses the professional fundraiser or commercial participator is entitled to receive|
if the fundraising agreement is between a benevolent body and a commercial participator, details of how the parties will determine:
1. the proportion of proceeds from sales of goods or services which will be given to the benevolent body, and/or
If the fundraising agreement does not include all these requirements:
Making records relating to a fundraising agreement available
Professional fundraisers or commercial participators who have a fundraising agreement with a benevolent body must make any records and information about the agreement available to the benevolent body if they request it.
Consequence of fundraising without a fundraising agreement
It is an offence for a professional fundraiser or commercial participator to fundraise on behalf of a benevolent body without a fundraising agreement in place which satisfies the requirements of the 2009 Regulations.
The 2005 Act also states that, if a professional fundraiser or commercial participator fundraises on behalf of a benevolent body without a fundraising agreement, either the benevolent body or OSCR (if the organisation is a charity) may apply to the sheriff court for an interdict (court order) to stop unauthorised fundraising. An interdict may be granted only if the sheriff is satisfied that the fundraiser is likely to continue to fundraise without a fundraising agreement.