Disclosure of fund-raising costs and use of professional fund-raiser
Charities that file yearly reports must tell anyone who asks what percentage of donated money went to fund-raising costs. Anyone collecting money for a charity must say in their materials that some money goes to marketing and paid workers, if that is true. When a paid professional is raising money for a charity, that person must tell donors that they are a paid professional fund-raiser.
407.469. Disclosure of -raising costs and use of . — 1. All required to submit an under section 407.462 shall, upon request, disclose the percentage of the funds which were spent on the costs of fund raising in the last twelve-month period for which an annual report was filed under section 407.462. For purposes of this section, costs of fund raising shall include all money directly expended on fund raising and that portion of all and salaries of the attributable to fund-raising activities. Any person who markets or collects funds on behalf of a charitable organization shall state on all literature soliciting such funds that a portion of the funds contributed are used for marketing expenses and paid to persons for marketing the charitable organization, if any such funds are so used.
2. Whenever a of funds on behalf of a charitable organization is undertaken by a professional fund-raiser, the professional fund-raiser shall disclose that fact to contributors.
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Source & history notes
(L. 1986 S.B. 685, A.L. 1994 H.B. 1095)
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