What Is an Indiana Professional Fundraiser Bond?

An Indiana Professional Fundraiser Bond is a type of surety bond required by the Indiana Attorney General’s Office for individuals and businesses that raise money on behalf of charitable organizations. This bond serves as a financial guarantee that fundraisers will comply with state laws and ethical fundraising practices. It also protects charities and donors from fraudulent or deceptive fundraising activities.

Key Points About the Bond:

• It is a licensing requirement for professional fundraisers in Indiana.

• It guarantees compliance with state laws governing fundraising practices.

• It protects charities and donors from financial harm due to misconduct.

• It differs from insurance – while insurance protects your business, a surety bond protects the public and your clients.

Who Needs an Indiana Professional Fundraiser Bond?

Any individual or business that solicits contributions on behalf of a charitable organization may be required to obtain this bond. This includes:

• Professional fundraising firms that conduct campaigns for charities.

• Consultants and independent fundraisers who help organizations raise money.

• Telemarketing or direct mail fundraising companies that solicit donations.

From what I’ve seen, even fundraisers who only provide consulting services may need a bond depending on their level of involvement in solicitation activities. It’s always best to check with the Indiana Attorney General’s Office to confirm your specific requirements.

How Much Does an Indiana Professional Fundraiser Bond Cost?

The bond amount required will depend on state regulations and the specific fundraising activities involved. The cost you pay for the bond (the premium) is a percentage of the total bond amount.

Typical Cost Range:

• Premiums generally range from 1% to 10% of the bond amount.

• If a $10,000 bond is required, the annual premium could be between $100 and $1,000, depending on financial and credit history.

How to Get an Indiana Professional Fundraiser Bond

Getting bonded is a straightforward process:

1. Verify licensing requirements – Check with the Indiana Attorney General’s Office to determine the bond amount needed.

2. Apply with a surety bond provider – Provide your business details for a quote.

3. Receive a quote – Your bond rate is based on factors like credit history and business experience.

4. Pay for the bond – Once you accept the quote, make your payment.

5. Receive your bond certificate – Submit the bond with your licensing application.