Why Is This Bond Necessary?

This bond serves multiple purposes:

1. Protects Charities and Donors: Ensures fundraisers act transparently and deliver collected funds to the intended organization.

2. Ensures Compliance: Mandates adherence to Idaho’s laws governing professional fundraising activities.

3. Promotes Accountability: Holds fundraisers financially responsible for misconduct or mismanagement of funds.

In my observation, this bond builds trust between fundraisers, charitable organizations, and the public by ensuring ethical practices.

How Does the Bond Work?

The bond is a three-party agreement:

1. Principal: The professional fund-raiser obtaining the bond.

2. Obligee: The Idaho Secretary of State, which requires the bond.

3. Surety: The bonding company that issues the bond and guarantees payment for valid claims.

If the fund-raiser fails to comply with Idaho’s laws, breaches a contract, or misuses funds, a claim can be filed against the bond. The surety compensates the affected party up to the bond amount, but the fund-raiser must reimburse the surety for any payouts.

Bond Amount

The bond amount required by the Idaho Secretary of State is typically $15,000. This amount ensures sufficient protection for charitable organizations and donors while keeping the cost manageable for fundraisers.

Cost of the Bond

The cost of the bond, or premium, is a small percentage of the total bond amount. Factors affecting the premium include:

• Credit Score: Higher scores often result in lower premiums.

• Business Experience: Established fundraisers may qualify for better rates.

• Financial Stability: A strong financial history can reduce costs.

Premiums for the Idaho Professional Fund Raiser Bond typically range from $150 to $450 annually, depending on these factors.

How to Obtain the Bond

1. Verify Requirements: Confirm the required bond amount and terms with the Idaho Secretary of State.

2. Apply for the Bond: Provide personal, business, and financial details to a bonding company.

3. Undergo Underwriting: The surety assesses your creditworthiness and qualifications to determine eligibility and premium.

4. Pay the Premium: Once approved, pay the premium to activate your bond.

5. File the Bond: Submit the bond to the Idaho Secretary of State to complete your licensing process.

Maintaining Your Bond

To remain compliant with Idaho law:

• Renew Annually: Most bonds are valid for one year and must be renewed to avoid lapses.

• Adhere to Regulations: Follow all state fundraising laws to avoid claims.

• Update Information: Notify your surety of changes to your business operations or contact details.

Benefits of the Bond

1. Builds Trust: Demonstrates professionalism and ethical practices to charities and donors.

2. Protects Your Reputation: Shields your business from legal disputes by ensuring compliance.

3. Supports Licensing: Meets the legal requirements to operate as a professional fund-raiser in Idaho.