Professional Fund Raiser/ Professional Fund Raising Consultant

Frequently Asked Questions

Charitable solicitation means request, directly or indirectly, for money, credit, property, financial assistance, or any other thing of value on the plea or representation that it will be used for a charitable purpose.

Charitable solicitation or solicitation includes:

(A) any oral or written request, including any request by telephone, radio, television, or other advertising or communications media;
(B) the distribution, circulation, or posting of any handbill, written advertisement or publication; or
(C) an application or other request for a private grant or, if made by an individual, a public grant; or
- (ii) the sale of, offer or attempt to sell, or request of donations in exchange for any advertisement, membership, subscription, or other article in connection with which any appeal is made for any charitable purpose, or the use of the name of any charitable organization or movement as an inducement or reason for making any purchase donation, or, in connection with any sale or donation, stating or implying that the whole or any part of the proceeds of any sale or donation will go to or be donated to any charitable purpose.

Charitable solicitation or solicitation does not include an entity's application orother request for a public grant. (Utah Code § 13-22-2)

A professional fund raiser means a person who for compensation or any other consideration, for or on behalf of a charitable organization that is a nonprofit corporation, or any other person that is not a political organization: solicits contributions; or promotes or sponsors the solicitation of contributions; for compensation or any other consideration, plans, manages, consults, or prepares material for, or with respect to, the solicitation of contributions for a charitable organization that is a nonprofit corporation, or any other person that is not a political organization; and at any time has custody of a contribution for the charitable organization; engages in, or represents being independently engaged in, the business of soliciting contributions for a charitable organization that is a nonprofit corporation; manages, supervises, or trains any solicitor whether as an employee or otherwise; or uses a vending device or vending device decal for financial or other consideration that implies a solicitation of contributions or donations for any charitable organization or charitable purposes. (Utah Code § 13-22-2)

Professional fund raising consultant does not include: an individual acting in the individual's capacity as a bona fide officer, director, volunteer, or full-time employee of a charitable organization; an attorney, investment counselor, or banker who, in the conduct of that person's profession, advises a client regarding legal, investment, or financial advice; or a person who tangentially prepares materials, including a person who: makes copies; cuts or folds flyers; or creates a graphic design or other artwork without providing strategic or campaign-related input. (See Utah Code § 13-22-2)

Yes. Unless a person acting as a professional fund raiser is registered with the division in accordance with Section 13-22-9, the person may not: make or facilitate a solicitation either directed toward the state or originating from the state; or maintain a place of business in the state or employ an individual located in the state,or provide any service of a professional fund raising consultant to or for a charitable organization, or any other person, over which the state has general jurisdiction. (Utah Code § 13-22-5)

Yes. Each professional fund raiser shall segregate and maintain all contributed funds in an account held separately from the professional fund raiser's operating account. Each contribution in the control or custody of the professional fund raiser shall, no later than 10 days after the day on which the contribution is received, be deposited into an account at a bank or other federally insured financial institution that is in the name of the charitable organization.

The charitable organization shall maintain and administer the account and shall have sole control of all withdrawals.

A professional fund raiser shall develop and maintain adequate internal controls for receipt, management, and disbursement of money that are reasonable in light of the organization's or professional fund raiser's assets and organizational complexity. (Utah Code § 13-22-16)

Yes. A charitable organization may only engage the services of a professional fund raiser or professional fund raising consultant through written agreement. A professional fund raiser/professional fund raising consultant, may only engage in activities on behalf of a charitable organization through written agreement with the organization.

A professional fund raiser or professional fund raising consultant shall file each agreement described in this section with its application for registration. (Utah Code § 13-22-17)

Yes.

Before commencing a fund raising campaign, a professional fund raiser shall submit to the division: projected expenses and revenue for the campaign; bank account information for the bank account where the professional fund raiser will hold contributions collected in connection with the fund raising campaign; the solicitation scripts that will be used for the fund raising campaign; an affirmation from the professional fund raiser that the charity has approved the solicitation materials to be used in the fund raising campaign; and names and contact information for the individuals overseeing the fund raising campaign.

No later than 90 days after the day on which the fund raising campaign ends, the professional fund raiser shall submit a report to the division detailing: all contributions collected during the fund raising campaign; all contributions paid to the charitable organization as a result of the fund raising campaign; and expenses paid by the charitable organization to the professional fund raiser for the fund raising campaign. (Utah Code § 13-22-24)