Contracts Relating to Fundraising Must be Registered with the State. When a charity makes an agreement with another organization to share in the proceeds of sales, or when a charity makes an agreement with a professional paid fundraiser, these contracts generally are required to be filed with the Attorney General's office.
Contracts with professional paid fundraisers must be filed with the Attorney General using the CR-500P. Two charity officials must sign the contract. The filing is due at least 10 days prior to the performance of any service by the professional paid fundraiser, who is responsible for filing the contract. However, if the individual fundraiser fails to file, the charity may be held responsible and assessed penalties. From time to time the Attorney General's office will refuse to accept the contract because of some deficiency. In that case, the charity and fundraiser have 10 days to satisfy the requirements or request a hearing. The CR-500P is downloadable from the following site: www.state.nj.us/lps/ca/charity/charfrm.htm
Contracts for "cause-related marketing" or any arrangement that results in a charity receiving a percentage of sales, must be registered. Under the CRI Act, when individuals or corporations (for-profit or nonprofit) advertise that the purchase of goods or the use of their service will benefit a particular charity, this is known as a "commercial co-venture." The CRI Act requires charities that are involved in a co-venture to register the written agreement they have with the other party within 10 days of the sales promotion (defined as an advertising campaign that represents that the purchase of goods, or use of services will benefit a charity). At the conclusion of the sales promotion the charity must report to the Attorney General the gross amount of income received by the commercial co-venturer and that percentage provided to the charity. This report is filed using the CCO-500 downloadable from the following site: www.state.nj.us/lps/ca/charity/charfrm.htm
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