Professional Fundraiser Bond Guide
Professional solicitors working on behalf of charitable organizations need a surety bond to operate in many states. Learn how to navigate the bonding process with this comprehensive guide.
Bond Overview
- Purpose: To protect charitable organizations from mismanagement of funds or inappropriate solicitations
- Who Needs It: Individuals that manage and raise funds for charities, including consultants, counselors, grant writers and associates
- Required Amount: $10,000–$50,000 in most states
- Premium Rates: Typically 1–4% of the bond amount
What Is a Professional Fundraiser Bond?
A professional fundraiser bond is a type of license and permit surety bond that protects charitable organizations from loss or damages due to mismanagement of funds or inappropriate solicitation activities.
Professional solicitors include fundraising consultants, counselors, grant writers and associates. The surety bond ensures that these individuals manage and raise funds according to state rules and regulations.
How Much Do Professional Fundraiser Bonds Cost?
Each state sets specific licensing regulations, so bond amounts and costs vary greatly from state to state. However, most fundraising bonds range from $10,000 to $50,000 in coverage.
The cost of a professional fundraiser bond premium is calculated as a percentage of the bond amount, typically 1–4%, depending on the solicitor’s credit score.
Select your state below for more information about fundraiser bonds in your area:
How Do Commercial Fundraiser Bonds Work?
Commercial fundraiser bonds act as a legal contract between three parties:
- The principal is the professional fundraiser purchasing the bond.
- The obligee is the state licensing agency requiring the bond from the principal.
- The surety is the provider issuing the bond and backing the principal.
The surety guarantees money is available to the obligee in the event of wrongdoing by the principal. If a claim is made on this bond, the surety will typically provide compensation to the charity or state. However, the solicitor is responsible for reimbursing the surety agency in full.
How to Become a Bonded Professional Fundraiser
Professional fundraisers who facilitate and execute fundraising activities for charitable organizations need to be licensed and bonded to operate in most states. SuretyBonds.com provides the fastest and easiest bonding process for professional fundraisers. Follow these steps to get your surety bond quickly and easily:
- Apply online in 5 minutes.
- Pay for your bond quote online or over the phone.
- Receive an instant email copy of your bond, and the original bond form in the mail according to your shipping preferences.
- File your original bond form with the state licensing office.
You’ll need to supply the following information with your application:
- The required bond amount
- Personal financial records (including credit score)
- Business financial records (if applicable)
- Industry experience (if applicable)
Get started now!
Bonding With Bad Credit?
Don’t let a low credit score keep you from getting the professional fundraiser surety bond you need! Our Bad Credit Bonding Program helps us approve 99% of applicants. Apply now to see if you qualify.
