2012 New York Consolidated Laws
EXC - Executive
Article 7-A - (171-A - 177) SOLICITATION AND COLLECTION OF FUNDS FOR CHARITABLE PURPOSES
174-A - Contracts with charitable organizations.

 
    § 174-a. Contracts   with  charitable  organizations.  1.  Whenever  a
  charitable organization contracts with a  professional  fund  raiser  or
  fund   raising   counsel   or  commercial  co-venturer,  the  charitable
  organization shall have the right to cancel the contract  without  cost,
  penalty, or liability for a period of fifteen days following the date on
  which  said  contract is filed with the attorney general pursuant to the
  provisions of this article, regardless of the date of execution of  said
  contract.  Any  provision in the contract that is intended to waive this
  right of cancellation shall be void and unenforceable.
    2. A charitable organization may cancel a contract signed pursuant  to
  subdivision  one of this section by a written notice of cancellation. If
  given by mail, cancellation shall be deemed effective when deposited  in
  a  mailbox,  properly addressed and postage prepaid. The notice shall be
  sufficient if it states that the charitable organization does not intend
  to be bound by the contract.
    3. Whenever a charitable organization cancels a contract  pursuant  to
  the  provisions  of  this section, it shall mail a duplicate copy of the
  notice  of  cancellation  to  the  attorney  general,  at  the   address
  designated for that purpose.
    4.  Every  contract  entered  into pursuant to subdivision one of this
  section shall contain, in a conspicuous typeface:
    (a) a concise, accurate statement  of  the  charitable  organization's
  right to cancel;
    (b)  a  concise,  accurate  statement  of  the period during which the
  contract may be cancelled;
    (c) the address to which the notice of cancellation is to be sent;
    (d) the address of the attorney general to which a  duplicate  of  the
  notice of cancellation is to be sent; and
    (e)  a  clear  statement  of  the  financial arrangement including, if
  applicable, a statement of the percentage of the total  funds  collected
  on  behalf  of  the  charitable  organization which shall be paid to the
  professional fund raiser or any other person for purposes other than the
  exclusive benefit of the charitable organization.
    5. Any funds collected by any professional fund raiser,  fund  raising
  counsel,  professional  solicitor,  commercial  co-venturer,  charitable
  organization or any other person in violation of this section  shall  be
  deemed   to  be  held  in  trust  for  the  benefit  of  the  charitable
  organization without deduction for costs or expenses of  any  nature.  A
  charitable organization shall be entitled to recover all funds collected
  in  violation  of  this  section  together with costs, disbursements and
  allowances.
    6. The failure of a professional fund raiser, fund raising counsel  or
  commercial  co-venturer  to  immediately discontinue solicitation or any
  other fund raising activity upon receipt of a notice of cancellation  in
  accordance  with  the  provisions of this article within fifteen days of
  the cancellation of the contract shall be  deemed  to  be  a  continuing
  fraud upon the people of the state of New York.
    7.  In  addition  to  all  other remedies provided by law the attorney
  general may bring an action to enjoin the violation of the provisions of
  this section and to recover restitution, damages,  costs  and  attorneys
  fees.