If the agreement allows for varying payment levels, it is clear that this must be justified in the agreements by reference to the particular circumstances in which different levels of payment may apply. If this is the case, the contract must contain conditions that allow you and the third-party supplier to terminate the contract before their payment changes. Third-party fundraisers that are not covered by the legal definition of a professional fundraiser must indicate the actual amount and how the payment is calculated in each proposal or agreement, and fully specify all fees, expenses and other related costs, the calculation of their fees and the timing of payments. Where an agreement with a counterparty falls within the definition of “commercial participant,” the commercial participant must have a written agreement with the charity for which he intends to raise funds, and certain information must be included. If a third-party fundraiser falls within the definition of “professional fundraising,” the agreement must include the details of the invitation they must provide, as well as the fees and expenses paid by the professional fundraiser. If your third-party fundraiser has or may have a conflict of interest, you cannot reach an agreement with them without the permission of the person or organization whose interests are in conflict with them. In the event of a significant conflict of interest, both parties must check whether it is appropriate for the relationship to continue. When charities work with outside organizations to raise funds, it is important that there is a common understanding of what this regulation means in practice. This section contains what needs to be defined as part of fundraising agreements to ensure that expectations are clear and what paid third-party collectors should tell donors when raising funds on behalf of a non-profit organization. You must do everything in your power to ensure that third-party fundraisers or paying business partners comply with the agreement you have with them (including contractual conditions for compliance with the Code). It is against the law for a business participant to claim, in the context of an advertising business, that he or she is making money available to a non-profit organization, unless that requirement is consistent with a written agreement they have with the non-profit organization for which they raise funds. The agreement must be signed and signed in writing by both the commercial participant and the non-profit organization for which they collect donations.
You must have verification procedures in the agreement. You must take into account the performance of the third-party supplier in these audits and decide whether other measures are appropriate (for example. B revision of the agreement or activation of punitive clauses that may be part of the agreement).