2012 New York Consolidated Laws
EXC - Executive
Article 7-A - (171-A - 177) SOLICITATION AND COLLECTION OF FUNDS FOR CHARITABLE PURPOSES
173-A - Contracts of professional fund raisers, fund raising counsel and commercial co-venturers; closing statements; final accountings.

 
    § 173-a. Contracts  of professional fund raisers, fund raising counsel
  and commercial co-venturers; closing statements; final  accountings.  1.
  No  person shall act as a professional fund raiser, fund raising counsel
  or commercial co-venturer before he has  a  written  contract  with  the
  charitable organization or other person benefitting from his services. A
  professional  fund  raiser or fund raising counsel shall within ten days
  after its execution by  the  parties  thereto  file  with  the  attorney
  general  a  copy of each contract entered into between such professional
  fund raiser or  fund  raising  counsel  and  a  charitable  organization
  required  to  be  registered  pursuant  to this article, certified under
  penalties for perjury by said professional fund raiser or  fund  raising
  counsel  to  be  a  true  and  correct  copy  of such contract. When the
  services  to  be  performed  under  such  contracts  include  the   oral
  solicitation  of funds from the public, such oral presentations shall be
  deemed to be part of the contract and shall  be  reduced  to  a  writing
  which  in the case of a professional fund raiser shall be filed with the
  attorney general by the registrant at the time such contracts are filed.
  If there is any change in  the  presentation  filed  with  the  attorney
  general,  the  registrant  shall  notify the attorney general in writing
  within five days of such change. No services shall  be  performed  under
  such  a  contract until the professional fund-raiser shall have received
  an acknowledgement from the attorney general of the receipt of a copy of
  such contract or such contract shall have been on file with the attorney
  general for at least  fifteen  days,  whichever  is  shorter.  Provided,
  however,  that  no services shall be performed pursuant to such contract
  if, within fifteen days of filing, the attorney general has notified the
  professional fund raiser or fund  raising  counsel  and  the  charitable
  organization of any deficiencies in the contract and/or the registration
  and filing under this article. True and correct copies of such contracts
  shall  be kept on file in the offices of the charitable organization and
  the  professional  fund  raiser,  fund  raising  counsel  or  commercial
  co-venturer during the term thereof and until the expiration of a period
  of  three years subsequent to the date the solicitation of contributions
  provided for therein actually terminates. Within ninety days  after  the
  termination  of  any  such  contract, the professional fund raiser shall
  file with  the  attorney  general  a  closing  statement,  signed  under
  penalties for perjury by all parties to the contract on forms prescribed
  by  the  attorney  general. Such statement shall disclose gross revenue,
  all expenditures incurred in the performance of the  contract,  and  all
  funds  paid to the professional fund raiser and charitable organization.
  In the event that a contract term is longer than a one year period,  the
  professional  fund  raiser  shall  file  an  interim statement, at least
  annually. No person shall act as a sub-contractor on behalf  of  another
  professional fund raiser prior to obtaining a written contract with such
  professional  fund  raiser and written consent from the charity on whose
  behalf fundraising activities are  to  be  conducted  pursuant  to  such
  contract,  and  such  written  consent  shall have been attached to such
  contract and filed with the attorney general pursuant to subdivision one
  of  this  section.  Willful  violation  of  this  section  shall  be   a
  misdemeanor.
    2.  Every contract between a professional fund raiser and a charitable
  organization shall contain or shall be deemed  to  contain  a  provision
  that  within five days of receipt by the professional fund raiser or any
  other person the gross revenue received from any solicitation  shall  be
  deposited in a bank account under the exclusive control of the charity.
    3.  Within  ninety  days  after  the  termination of a sales promotion
  advertised  to  benefit  a   charitable   organization,   a   commercial
  co-venturer  shall  provide such organization with an accounting stating

  the number of items sold, the dollar amount of each sale and the  amount
  paid or to be paid to the charitable organization. In the event that any
  such  sales  promotion  is longer than a one year period, the commercial
  co-venturer  shall  provide  the charitable organization with an interim
  report, at least annually.
    4. A charitable organization which  enters  into  a  contract  with  a
  commercial  co-venturer shall file with the attorney general on the date
  that the next  financial  report  is  due  to  be  filed  the  following
  information on forms prescribed by the attorney general and signed under
  penalties  for  perjury  by  an  officer:  (a)  a  list of the names and
  addresses of all commercial co-venturers authorized  by  the  charitable
  organization  to  use its name during the year covered by that financial
  report and, if known, during the year following the year covered by  the
  financial  report,  (b)  a  statement  of  the  financial  terms and any
  conditions of each co-venture contract, and (c) a statement whether each
  commercial co-venturer has provided the charitable organization with  an
  accounting as prescribed by subdivision three of this section.