Comprehensive Guide to Connecticut Fund Raising Counsel or Paid Solicitor Bond

The Connecticut Fund Raising Counsel or Paid Solicitor Bond is a type of surety bond required by the Connecticut Department of Consumer Protection (DCP). The bond amount is set at $20,000 and the cost of the surety bond is usually between $200 and $600 per year or 1% to 3% of the bond amount.  Navigating the requirements for fundraising counsel and paid solicitors in Connecticut involves understanding specific licensing, registration, and bonding obligations. The Connecticut Department of Consumer Protection (DCP) oversees these regulations, primarily under the Connecticut Solicitation of Charitable Funds Act. Both “Fund Raising Counsel” and “Paid Solicitors” are required to register with the DCP  and obtain a surety bond. While their roles differ, the bond amount and purpose are generally the same.

Connecticut Fund Raising Counsel or Paid Solicitor Bond: A Detailed Guide

How to Get Your Connecticut Fund Raising Counsel or Paid Solicitor Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Connecticut Fund Raising Counsel or Paid Solicitor Bond will be shipped to the bond applicant which you will file with the Connecticut Department of Consumer Protection.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

About Surety1.com
Contact Surety1

The bond is generally valid for one year and must be renewed annually as long as the registration is in effect. Surety1 will send out renewal reminders.

What is a Fund Raising Counsel or Paid Solicitor Bond?

• This is a $20,000 surety bond required by the DCP. It acts as a financial guarantee that the fund-raising counsel or paid solicitor will:
  • Faithfully and honestly act in accordance with Connecticut law.
  • Fully comply with all applicable provisions of the Connecticut General Statutes, particularly the Solicitation of Charitable Funds Act.
  • Fully indemnify and save harmless the State of Connecticut from any loss.
  • Protect any person who may have a cause of action against the licensee for liabilities resulting from their conduct or a violation of the relevant statutes or regulations.

The bond is not a form of insurance for the principal (the fundraising counsel or paid solicitor); instead, it protects the public and the state. If the principal violates the terms of their registration or the law, a claim can be made against the bond.

Who Needs This Surety Bond?

Fund Raising Counsel:

• A person who, for compensation, plans, manages, advises, or consults with respect to the solicitation of contributions by a charitable organization in Connecticut. Crucially, a fundraising counsel does not directly solicit contributions and does not directly or indirectly employ, procure, or engage any person compensated to solicit contributions.
• Important Exception: Fundraising counsels that do not have custody or control of charitable contributions are generally exempt from the bond requirement, although other requirements of the Solicitation of Charitable Funds Act still apply. However, if they do have custody or control of contributions, registration and a bond are required.

Paid Solicitor:

• A person who, for compensation, directly solicits contributions on behalf of a charitable organization. This typically includes individuals or firms involved in telemarketing, direct mail, or door-to-door solicitations. Paid solicitors are generally more heavily scrutinized and regulated due to their direct interaction with the public regarding donations.
• Key Distinction: The primary difference lies in direct solicitation and handling of funds. If you directly ask for money or manage the actual collection of donations, you are likely a Paid Solicitor (or a Fundraising Counsel with custody/control of funds) and will need the bond. If you only provide advice or planning without direct solicitation or handling of contributions, you might be exempt from the bond requirement as a Fundraising Counsel, but will still likely have registration requirements.

Licensing Requirements for Fund Raising Counsel or Paid Solicitor in Connecticut

Both Fund Raising Counsel and Paid Solicitors must register with the Connecticut Department of Consumer Protection (DCP). The specific requirements vary slightly based on the role.

General Requirements for Both:

• Registration with DCP: All paid solicitors and some fundraising counsel must register. This registration is valid for one year and must be renewed annually.
• Compliance with CT Solicitation of Charitable Funds Act: Adherence to this act (Connecticut General Statutes sections 21a-190a to 21a-190l) is paramount.
• Written Contracts: A written contract between the fundraising counsel/paid solicitor and the charitable organization is typically required, clearly stating the obligations of both parties. For paid solicitors, this contract must also state the minimum amount the charitable organization will receive from the campaign.

Specific Licensing Requirements:

1. Paid Solicitors:

• • Registration Application: Submit a registration form prescribed by the commissioner, certified as true and correct.
  • Registration Fee: A non-refundable fee of $500 is required with the application.
  • Surety Bond: File and have approved a $20,000 Connecticut Fund Raising Counsel or Paid Solicitor Bond with the DCP. This bond must be maintained as long as the registration is in effect.
  • Solicitation Notice: A “solicitation notice” must be jointly filed by the paid solicitor and the charitable organization with the DCP at least 20 days prior to the commencement of each separate fundraising campaign. This notice should include a description of the event/campaign, location and telephone number for solicitation, and names/residence addresses of all individuals soliciting. It must be certified by the paid solicitor.
  • Financial Reports: At the conclusion of each campaign, the paid solicitor and the charitable organization must jointly file a financial report. This report must be certified by an authorized official of the paid solicitor and two authorized officials of the charitable organization. This information is publicly available.
  • Record Keeping: Paid solicitors must maintain detailed records during each solicitation campaign and for at least three years after its completion. This includes:
    • Name and address of each contributor (if known) and the date and amount of the contribution.
    • Name and residence address of each person soliciting.
    • If tickets are sold and represented as donated for use by another, records of the charitable organization’s written commitment to accept tickets and the number of tickets accepted.
    • Disclosures at Point of Solicitation: Paid solicitors have specific disclosure requirements during solicitations, particularly for oral solicitations (e.g., telephone). A written confirmation must be sent within five days to those who pledge to contribute.

2. Fund Raising Counsel:

• • Registration Application: Submit a “Fundraising Counsel Registration Statement” form.
  • Registration Fee: A fee of $120 is typically required for initial registration and renewal.
  • Surety Bond: Only required if the fundraising counsel has custody or control of contributions. If they do, a $20,000 Connecticut Fund Raising Counsel or Paid Solicitor Bond is required.
  • Contract Filing: Each contract between a charitable organization and a fundraising counsel must be in writing and filed by the fundraising counsel with the DCP at least 15 days prior to the performance of any material services under the contract.
  • Exemption from Registration: Fundraising counsels that do not have custody or control of contributions are often exempt from the full registration and bond requirement, but should still be aware of other provisions of the Charitable Funds Act.

Important Notes:

• Connecticut DCP: This is the primary regulatory body. Always verify current requirements directly with the DCP’s Public Charities Unit, as regulations can change. Their website (portal.ct.gov/dcp) is an excellent resource.
• Annual Renewal: Both registrations and the surety bond must be renewed annually.
• Consequences of Non-Compliance: Failure to register, file required documents, or maintain the bond can result in civil suits, criminal arrest, or administrative action to revoke or suspend registration.
• Local Ordinances: Be aware that some Connecticut counties and municipalities may have additional local licensing or permit requirements for solicitors, especially those engaging in in-person solicitations (e.g., door-to-door). It’s advisable to check with local police departments or town clerks.

This comprehensive guide should provide a solid foundation for understanding the Connecticut Fund Raising Counsel or Paid Solicitor Bond and associated licensing requirements. Always consult the official Connecticut General Statutes and the Department of Consumer Protection for the most up-to-date and specific information.