Rhode Island Professional Fundraiser Bond Guide
If you are registering to become a professional fundraiser in Rhode Island, you'll need to purchase a surety bond. Read this guide to learn all about the bonding process.
Bond Overview
- Purpose: To ensure professional charitable solicitors act honestly and ethically
- Who Needs It: Any person or organization who solicits contributions for charitable purposes
- Regulating Body: The Rhode Island Department of Business Regulation
- Required Coverage: $10,000
- Premium Rates: Start at $100, vary based on credit score
Why do I need a professional fundraiser bond in Rhode Island?
Posting a professional fundraiser surety bond is a required step to becoming a registered professional fundraiser in Rhode Island. A professional fundraiser is any person who solicits contributions or intends to hire a person or business to solicit contributions for charitable purposes. Bona fide volunteers or employees of a charitable organization or fundraising counsel are not considered professional fundraisers. A full list of exempted persons can be found here.
By posting the bond, professional fundraisers (principals) pledge to conduct business ethically and in accordance with all laws of the state and industry. Prohibited acts under this bond include:
- leading people to believe that money and funds are collected for charitable purposes when they are not
- using a charity’s name without written consent to do so
- employing any device, scheme, or artifice to defraud or obtain money through misrepresentation or misleading statements
These bonds ensure that harmed parties are protected from any losses resulting from the principal’s malfeasance, nonfeasance, or misfeasance in the conduct of solicitation activities up to the full bond amount of $10,000. The principal must reimburse the surety for all damages paid out.
How much does a professional fundraiser bond cost in Rhode Island?
The Securities Division of Rhode Island’s Department of Business Regulation requires professional fundraisers to post $10,000 surety bonds as a registration requirement.
These bonds require surety underwriting consideration, but qualified applicants could pay as little as $100 for their bonds. The best way to find out exactly how much you’ll pay for your Rhode Island surety bond is to request your free quote online!
How to become a registered professional fundraiser in Rhode Island
Any organization or person soliciting contributions or intending to hire a person or business to solicit contributions for charitable purposes in Rhode Island must obtain the appropriate registration. Information required on the registration application includes:
- the official name and address of the organization
- the date/place of the organization’s establishment
- the organization’s entity type
- copies of all contracts with charitable organizations
- all additional names and addresses of all officers, agents, and employees
- a taxpayer status affidavit
- proof of a surety bond
Note: Filings cannot be submitted via paper; all must be submitted via USB flash drives or CD-ROMs. Rhode Island also allows professional fundraisers to register with the state via e-licensing.
All required application fees must be paid in full at the time of application. The filing fee of $240 can be paid through checks made payable to General Treasurer of RI.
Additional considerations for Rhode Island professional fundraisers
Rhode Island professional fundraiser bonds remain in full force and effect until canceled or violated.
The Department of Business Regulation can terminate or cancel the bond at any time. The surety can also cancel or terminate the bond by giving written notice of cancellation to the Department. Cancellation becomes effective 60 days after the notice is received.
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Additional Resources
State of Rhode Island Professional Fundraiser Bond Form
State of Rhode Island Department of Business Regulation Application for Professional Fundraiser
State of Rhode Island Department of Business Regulation
Rhode Island General Laws Chapter 5-53.1: Solicitation by Charitable Organizations
