Fund-raising Disclosure Form Instructions Introduction G.S. 131F

Fund-raising Disclosure Form
North Carolina Department of the Secretary of State
Charitable Solicitation Licensing
Instructions
for charitable or sponsor organizations
Introduction
G.S. 131F-6(a)(13) requires any charitable or sponsor organization that applies for a license to
submit information about any contract relationship(s) with any fund-raising consultant, solicitor, or
coventurer who has acted or has agreed to act on the applicant’s behalf. The new Fund-raising
Disclosure Form provides a concise format for filing this information.
This new form supersedes and replaces the following previously required forms and attachments:
1
Fund-raiser contract documents;
2
Schedule C – Fund-Raisers;
3
Schedule H – Special Fund-Raising Events and Activities; and
4
Schedule L – Joint Costs of Multipurpose Activities Involving Fund-Raising.
Instead of completing and submitting these items, complete and attach one (1) fund-raising
disclosure form for each contract to satisfy the disclosure requirement.
Disclosure Basics
Complete the following general steps to determine whether you need to make a fund-raising disclosure and how to
disclose effectively:
1. Identify which contracts, if any, require filing a disclosure.
Step 1: Identify business relationships. Only three (3) types of business relationships require making a
disclosure:
(1) A contract with a solicitor. A solicitor is a person or business that you compensate to solicit contributions for
your organization. Solicitors may collect contributions directly and may exercise a broad level of control over a
fundraising campaign. Solicitors conducting campaigns that solicit contributions from North Carolina residents must
possess a North Carolina solicitor’s license.
(2) A contract with a fund-raising consultant. A fund-raising consultant is a person or business that you
compensate to assist your organization with planning fundraising campaigns or training those who will solicit
contributions for your organization. Fund-raising consultants may not lawfully collect contributions directly. Fund-raising
consultants working with campaigns that solicit contributions from North Carolina residents must possess a North
Carolina fund-raising consultant’s license.
(3) A contract with a coventurer. A coventurer is a person or business that you compensate to conduct a charitable
or sponsor sales promotion informing North Carolina consumers that purchasing the coventurer’s goods or services will
benefit you (usually through your receiving a portion of the good or service purchase price). North Carolina law does not
require coventurers to obtain a license, but the law does require coventurers and you to comply with record keeping and
disclosure requirements concerning the contract(s), promotion(s), and result(s).
Step 2: Identify the appropriate time period for your disclosures. The general rule is that you must
disclose any contracts that were active (services provided), signed, or completed during the period since your
last application filing.
(1) If you are a renewal applicant filing on time (or with an extension), the period for disclosures is within the
immediate past fiscal year. This is the same period required for your financial filings.
(2) If you are a renewal applicant filing late, the period for disclosures will be more than the immediate past fiscal
year, extending to the time since your last application filing. However, file only one “consolidated” disclosure for each
contract covering the entire period. You do not need to file a separate disclosure form for each fiscal year on a multiyear
contract.
(3) If you are an initial license applicant, the period for disclosure is during the immediate past fiscal year (if you
have one) or within the twelve (12) months preceding your application’s filing date (if you do not).
Fund-raising Disclosure Form
Contact Information: Instructions
Agency Internet Site: www.sosnc.com Electronic Mail: [email protected]
Telephone: (919) 807-2214 -Toll free for NC residents: 1-888-830-4989
CSL
Form
Revision:
1
Facsimile: (919) 807-2220
Effective Date: November 19, 2004
Mailing Address: P.O. Box 29622, Raleigh, NC 27626-0622
Page 1of 3
2. Disclose the contract’s compensation terms.
North Carolina law requires applicants to disclose compensation arrangements in covered contracts. Consider the
following points when disclosing compensation terms:
1
Your disclosure is a public document. Consumers researching your organization will review your disclosures.
The Department recommends providing concise statements in plain English describing how you compensate your contract
partner(s). “Cutting and pasting” an exact copy of contract text is not required and may be less useful for the consumer
than a brief, accurate description.
2
Use the format provided to categorize your compensation terms. The statute and the form use terms like
“salaries” and “commissions” that may have several reasonable definitions. When in doubt, if your contract describes a
compensation item using a statutory term, use the description block for that term to describe the item. For example, if your
contract describes a compensation term as a “fee”, put your description of the term in the “fee” block on the form.
3. Guide to compensation terms: Use the following basic descriptions for compensation terms to guide your
descriptions of your contract terms:
“Salary, rate, or fee” generally means a specific amount paid for services or a specific amount paid over a period
of time that recurs (e.g., “per month”).
“Bonus” generally means additional compensation provided to a contractor if one or more condition(s) occur.
“Commission” generally means a compensation structure where contractor receives compensation expressed as a
percentage of transactions, products, contributions received, or another similar variable.
“Expenses” generally means any outlay, charge, or cost paid by the applicant to secure services, benefits, or
results under the contract.
“Other compensation” is miscellaneous term covering compensation arrangements not otherwise described.
3. Disclose the amount you received under the contract.
Calculate and disclose the amount you received as a result from the contract. North Carolina law does not specify
whether the amount you report must be the gross amount you received under the contract (i.e., the total amount without
subtracting compensation and expenses) or the net amount you received under the contract (i.e, the total amount you
received after subtracting all compensation and expenses) . The Department will accept either or both figures, and
provides a space on the disclosure form for specifying which type(s) you report.
General formatting and attachment instructions
The Department posts this form on its website in Rich Text (RTF) format so that applicants may download the form,
complete it on any standard word processor, and print the completed form for submission with a license application. The
RTF form permits extending answers beyond the original form length of one page. Applicants may also print the empty
form and complete the form using legible handwriting.
The Department accepts attachments to hand-completed forms and accepts word processed forms exceeding one page of
printed text. If you submit multi-page forms or attachments, please submit them in simplex (printed on one side only)
format on standard 8 ½” x 11” paper. Doing so expedites processing.
How we process your disclosure(s) with your license application
Upon receipt with the rest of your application, the Department will scan your disclosure form(s) into electronic format.
The Department will examine the form to make sure (1) all form questions have answers and (2) submitted form
information is reasonably consistent with other information in your application. The Department will make your filed
form available for public inspection by consumers.
Fund-raising Disclosure Form
Contact Information: Instructions
CSL
Agency Internet Site: www.sosnc.com Electronic Mail: [email protected]
Telephone: (919) 807-2214 -Toll free for NC residents: 1-888-830-4989
Form
Revision:
1
Facsimile: (919) 807-2220
Effective Date: November 19, 2004
Mailing Address: P.O. Box 29622, Raleigh, NC 27626-0622
Page 2of 3
Appendix: Specific line item instructions
This section provides specific guidance for completing the form questions on your fund-raising form(s):“Form ___ of ___
filed with Application” Answering this block is requested, but not required. The Department
uses this information to help keep your application documents ordered during processing. For example, if the formis the
first of three you are submitting, mark: “Form 1 of 3 filed with Application”.Item 1. Applicant Name. Enter your
organizations’ name here. This name should match your answer to the “Full
Legal Name” question on your license application.Item 2. Contractor Name. Enter your contract partner’s full legal
name here.Item 3 -Contractor Street Address. Enter your contract partner’s street address (NOT P.O. Box address)
here.Item 4. Contractor Telephone Number. Enter your contract partner’s primary telephone number here.Item 5.
Contractor Type. Determine your contract partner’s TYPE and check the appropriate box, using one of
these choices: Coventurer, Fund-raising Consultant, or Solicitor.
Item 6. Contract signing/execution date. Enter the date you signed the contract here. The Department uses
thisinformation to confirm whether your contract falls within your reporting period.Item 7. Contract services begin
date. Enter the date services began or will begin under your contract here. The
Department uses this information to confirm whether your contract falls within your reporting period.
Item 8. Contract services end date. Enter the date services ended or will end under your contract here. TheDepartment
uses this information to confirm whether your contract falls within your reporting period.Item 9. Is this a continuing or
multiyear contract? Answer YES if your contract has extended or will extend over
multiple years. Otherwise, answer NO. This information helps the Department and consumers match
yourmultiyear contract disclosures to the underlying contract.
Item 10. Are North Carolina residents solicited for contributions as a direct or indirect result of thiscontract?
Answer YES or NO. The Department uses this information to evaluate whether your contract partner, ifnot licensed in
North Carolina, may require a North Carolina solicitation of contributions license.
Item 11. Does contract contain salary, rate, or fee terms? Answer YES or NO. If YES, describe your contract’s
salary, rate, or fee terms in the block provided or in a labeled attachment.Item 12. Does contract contain bonus terms?
Answer YES or NO. If YES, describe your contract’s bonus termsin the block provided or in a labeled attachment.
Item 13. Does contract contain commission terms? Answer YES or NO. If YES, describe your contract’s
commission terms in the block provided or in a labeled attachment.Item 14. Does contract contain expenses terms?
Answer YES or NO. If YES, describe your contract’s expensesterms in the block provided or in a labeled attachment.
Item 15. Does contract contain other compensation terms? Answer YES or NO. If YES, describe your
contract’s other compensation terms in the block provided or in a labeled attachment. Item 16. Amount of funds received
resulting from contract since your last license application filing: In the space provided, state either the gross amount of
funds received (total amount before subtracting compensation and expenses), or the net amount of funds received (total
after subtracting compensation and expenses). You may also opt to provide both amounts.
Fund-raising Disclosure Form
Contact Information: Instructions
CSL
Agency Internet Site: www.sosnc.com Electronic Mail: [email protected]
Telephone: (919) 807-2214 -Toll free for NC residents: 1-888-830-4989
Form
Revision:
Facsimile: (919) 807-2220
Effective Date: November 19, 2004
Mailing Address: P.O. Box 29622, Raleigh, NC 27626-0622
Page 3of 3
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