IF A CHARITY HIRES A TELEMARKETER OR A DIRECT MAIL COMPANY, IS THAT ORGANIZATION ALSO REQUIRED TO REGISTER?
A. Forty-five (45) states require professional fundraisers to register. Telemarketers are always defined as professional fundraisers because they directly contact the public. In contrast, many direct marketing companies act in the capacity of fundraising counsel, i.e., they do not directly contact the public. If a charity has a contract with a professional fundraiser, the contract generally must be filed. The contract will be open to public inspection. Q. WHAT IS A FUNDRAISING COUNSEL? A. The general definition of a fundraising counsel (or fundraising consultant) is a person that assists in planning, managing, or supervising a fundraising campaign, but does not directly solicit the public or have custody or control of funds raised by the campaign. Many direct mail agencies fall into this category. Q. MUST FUNDRAISING COUNSEL REGISTER? A. In many states registration is required. However, few states require bonds. The registration is less onerous than that required of a professional fund