Michigan Fundraiser | $10,000 Fundraiser Surety Bond

Type of Bond

A fundraiser bond, also known as a charitable solicitation bond or charitable organization bond, is a type of surety bond that may be required for individuals or organizations engaged in fundraising activities on behalf of charitable or nonprofit organizations. The bond serves as a financial guarantee that the fundraiser will comply with applicable laws, regulations, and ethical standards when soliciting and collecting donations. The purpose of a fundraiser bond is to protect donors and the public from fraudulent or unethical practices by fundraisers. It provides assurance that the fundraiser will use the collected funds for their intended charitable purposes and adhere to transparency and accountability requirements. The bond is a contractual agreement among three parties: the fundraiser (the principal), the government agency or regulatory authority overseeing charitable solicitation activities (the obligee), and the surety bond provider (the surety). If the bonded fundraiser violates any regulations, engages in fraudulent activities, or fails to meet their obligations, a claim can be filed against the bond. The surety bond provider will investigate the claim, and if it is found to be valid, the surety will compensate the affected parties up to the bond's specified amount. The specific bond requirements for fundraisers can vary by state and local regulations. The bond amount is typically based on factors such as the fundraiser's projected donation volume or the potential financial risk associated with their activities. Fundraisers are generally required to obtain and maintain a bond as a condition of their licensing or registration. To obtain a fundraiser bond, the fundraiser typically works with a surety bond provider. The bond application process involves a financial review and underwriting assessment. Fundraisers may need to renew the bond periodically, often on an annual basis or as required by the regulatory authority. Understanding and complying with the specific bond requirements and regulations in their jurisdiction is crucial for fundraisers to maintain their licensing status and operate legally. Consulting with legal and financial professionals can help ensure compliance and provide guidance on obtaining the necessary bond coverage.