Charitable Organization Bond
Serving Dallas, Fort Worth, Carrollton, Arlington, Austin, El Paso, Houston, San Antonio, Irving, Plano, Grand Prairie and throughout Texas.
Surety bonds for charitable organizations are required by most state governments in order to solicit donations from the general public. They are also known as professional solicitor bonds, professional fundraising surety bonds, or paid solicitor bonds. Whatever name you use, they all serve the same purpose: to collect money from donors with the assurance that the funds are being allocated to the organizations and purposes promised.
What is the purpose of a charitable fundraising bond?
Prior to starting a fundraising campaign, professional fundraisers need to file proof of surety insurance, depending on what state the organization is headquartered in. This is true of charitable and religious entities, commercial fundraising, as well as community and political organizations.
Charitable fundraising bonds simply ensure that the funds raised will be appropriately used for the intended purpose by being allocated and forwarded to the correct beneficiaries.
Who is required to get a charitable organization bond?
Charitable surety bonds are intended for professional solicitors and not just nonprofit and religious organizations themselves. Professional solicitors and fundraisers are individuals and businesses who plan, manage, and execute fundraising campaigns.
This group of professionals who must be bonded are those who directly solicit money from the public, but also includes others who plan, manage, or conduct charitable fundraising campaigns. So the definition could also encompass grant writers and fundraising consultants who specialize in the nonprofit sector.
Upon being bonded, fundraising professionals must comply with federal, state, and local laws according to the type of organization for which they are soliciting donations.
How much does a surety bond for professional fundraising cost?
The cost is based on your location, the coverage needed, and your credit rating. The bond premium for the standard market will be 1.5-4% of the bond's value, so for a $10,000 bond, the premium is $150-400. If your credit rating is poor, your premium on the nonstandard market will be higher.
How to Expedite Your Charitable Organization Surety Bond Application
The application process for a charitable fundraising surety bond can be confusing, and you may not be sure if you even need one. Our friendly and professional agents can be reached at (817) 590-9725 between 8:30a.m.-5:00p.m. M-F, and you can also reach out to us through our online contact form 24/7, where a surety bond specialist will get back to you as soon as possible.
To expedite your application, you will need to have certain information readily available. Requirements vary by state, but this generally includes:
- Your state’s required minimum bond amount
- Your credit score
- Personal financial records (e.g. salary history)
- Business/organization financial records
- Previous work history as a fundraiser (if applicable)
Our bond specialists will let you know if any other paperwork is required to complete your charitable organization bond application.
After your application is completed, you will receive a surety quote. Once you agree to it and pay the premium online, the bond paperwork will be executed, and we will mail it to you. If you need the bond papers immediately, we offer overnight shipping.
TMD Surety Bonds strives to make the bond application process as seamless as possible, and our surety experts are happy to answer any questions you have.
Call us today or apply online now!