Maryland Professional Fundraiser Bond: A Complete Guide

If you operate as a professional fundraiser in Maryland, you may be required to obtain a Professional Fundraiser Bond before being licensed to solicit donations on behalf of charitable organizations. This surety bond ensures that fundraisers follow Maryland’s laws regarding ethical solicitation, financial transparency, and proper handling of donations.

Understanding the bonding requirements, costs, and how to obtain one is crucial for compliance and maintaining public trust. This guide explains everything you need to know about Maryland’s Professional Fundraiser Bond and how to secure one quickly and affordably.

What is a Maryland Professional Fundraiser Bond?

A Professional Fundraiser Bond is a surety bond required by the Maryland Secretary of State – Charitable Organizations Division for individuals or businesses that solicit contributions on behalf of charities.

This bond guarantees that professional fundraisers:

✔ Adhere to Maryland fundraising laws and ethical standards.
✔ Handle donations responsibly and distribute funds as agreed.
✔ Provide accurate financial records to charitable organizations.
✔ Avoid misleading or fraudulent fundraising practices.

If a fundraiser engages in fraud, misrepresentation, or financial mismanagement, affected parties (such as donors or charitable organizations) can file a claim against the bond for compensation.

Who Needs a Professional Fundraiser Bond in Maryland?

Under Maryland state law, individuals and companies that solicit donations or manage fundraising campaigns for charitable organizations must be licensed and bonded.

You May Need This Bond If You:

✔ Work as a paid solicitor to raise funds for charities.
✔ Manage telemarketing, direct mail, or online fundraising campaigns.
✔ Collect donations, pledges, or sponsorships on behalf of charities.
✔ Are an independent contractor or fundraising consultant handling donor funds.

Who is Exempt from the Bond Requirement?

🚫 Charitable organizations themselves (if they raise funds directly).
🚫 Volunteers who do not receive compensation for fundraising.
🚫 Businesses that donate a portion of sales without directly soliciting contributions.

To confirm whether your fundraising activities require a bond and license, contact the Maryland Secretary of State – Charitable Organizations Division.

Why is a Professional Fundraiser Bond Required?

Maryland requires professional fundraisers to post a bond to:

📌 Protect charitable organizations and donors from fraud or mismanagement.
📌 Ensure fundraisers comply with state fundraising laws.
📌 Provide financial security if funds are mishandled.
📌 Hold fundraisers accountable for ethical practices.

Since fundraising involves handling donor money, this bond helps ensure that charities receive their funds in full and that donors are not misled or deceived.

Maryland Professional Fundraiser Bond Amounts

The required bond amount varies depending on Maryland regulations but typically falls within:

• $25,000 – Common bond amount for individual fundraisers or small firms.

• Higher amounts may be required for large-scale fundraising companies.

To determine the exact bond amount required, check with the Maryland Secretary of State – Charitable Organizations Division.

How Does a Professional Fundraiser Bond Work?

A Professional Fundraiser Bond is a three-party agreement that includes:

1. Principal – The professional fundraiser obtaining the bond.

2. Obligee – The Maryland Secretary of State, which enforces the bond requirement.

3. Surety – The bond company that guarantees compliance.

What Happens If a Fundraiser Violates the Bond Terms?

If a fundraiser engages in fraudulent practices, fails to distribute donations properly, or misrepresents fundraising efforts, a claim can be filed against the bond.

✔ The surety company investigates the claim.
✔ If valid, the surety compensates the affected party up to the bond amount.
✔ The fundraiser must reimburse the surety for any claims paid.

This ensures that fundraisers are held financially responsible for any misconduct.

How to Obtain a Maryland Professional Fundraiser Bond

If you need a Professional Fundraiser Bond to obtain or renew your license, follow these steps:

Step 1: Confirm Bond Requirements

• Contact the Maryland Secretary of State – Charitable Organizations Division to determine:

  • The required bond amount (usually $25,000 or more).

  • Licensing and renewal conditions.

  • Any additional regulatory requirements.

Step 2: Choose a Reputable Surety Provider

• Work with a bonding agency that specializes in Maryland fundraising bonds.

• Compare bond rates and processing times for the best deal.

• Ensure the provider offers fast approvals to avoid licensing delays.

Step 3: Apply for the Bond

• Provide business details, licensing information, and financial records.

• Undergo a credit check, as bond pricing depends on financial stability.

• Pay the bond premium, typically 1% to 5% of the bond amount.

Step 4: Receive and Submit Your Bond

• Once approved, your bond certificate is issued.

• Submit the bond to the Maryland Secretary of State before your license is granted or renewed.

Step 5: Renew the Bond Annually

• Since this bond expires after 12 months, renew it on time to prevent:

  • License suspension

  • Fines or penalties

  • Business disruptions

Common Mistakes to Avoid with a Professional Fundraiser Bond

🚫 Not Checking Your Required Bond Amount – The bond amount may vary based on your business size and fundraising volume. Always verify with state authorities.

🚫 Waiting Too Long to Apply – Bonds can take time to process. Apply early to prevent licensing delays.

🚫 Ignoring Renewal Deadlines – If your bond expires, your fundraising license may be suspended.

🚫 Failing to Comply with Fundraising Laws – Misuse of donor funds can lead to bond claims, fines, or legal action.

🚫 Choosing the Wrong Surety Provider – Not all bond companies offer fast approvals or the best rates. Work with a bonding expert in Maryland fundraising bonds.

How We Can Help with Your Maryland Professional Fundraiser Bond

We’ve helped many Maryland fundraisers obtain their Professional Fundraiser Bonds quickly and affordably. Our process is simple, fast, and hassle-free, so you can focus on raising funds for your clients while staying compliant.

✔ Same-Day Approvals – Get your bond issued quickly.
✔ Competitive Rates – We compare providers to get you the best deal.
✔ Expert Assistance – We help you determine exactly what bond you need.
✔ Hassle-Free Renewals – We remind you before your bond expires to prevent licensing issues.

Get Your Maryland Professional Fundraiser Bond Today!

If you need a Professional Fundraiser Bond in Maryland, don’t wait. We’ll help you get bonded quickly at the best possible rate!

👉 Need a quote or have questions? Contact us today, and we’ll take care of everything for you!