Professional Fundraiser Bonds-An Overview from Manav Pietro's blog

In order to protect charitable organizations from the potential of losing funds, many states require all professional fundraisers and commercial co-venturers to obtain a license prior to soliciting funds or goods. Professional fundraiser bonds ensure that the principal of the bond will pay all monies owed should a charity experience any losses, damages, or penalties resulting from any wrongdoing by the principal, its officers or employees in the conduct of the solicitation activities while the bond is active.

To encourage consistency, most states have adopted the Uniform Bonding Code (UBC), which makes sure that all solicitors are held to an equal standard. The UBC establishes the requirements for amounts, terms and conditions, and appointment changes. These requirements may change based on each state’s code, but the amount of coverage is typically the same across the board. The UBC also allows for increased fundraising efforts because states are able to trust fundraisers better in regards to their willingness to comply with fundraising laws. For more detail, please refer to the info-graphic below.