State Codes and Statutes
Statutes > Wisconsin > 440 > 440.44440.44
440.44 Regulation of professional fund-raisers.440.44(1)
(1) Registration requirement.440.44(1)(a)
(a) No professional fund-raiser may solicit in this state for a charitable organization that is required to be registered under s. 440.42 (1) unless the professional fund-raiser is registered under this subsection.440.44(1)(b)
(b) The department shall promptly register a professional fund-raiser that does all of the following:440.44(1)(b)1.
1. Submits to the department an application for registration on a form provided by the department.440.44(1)(b)2.
2. Files with the department a bond that is approved under sub. (2).440.44(1)(b)3.
3. Pays to the department a $50 registration fee.440.44(1)(c)
(c) The department shall issue a certificate of registration to each professional fund-raiser that is registered under this subsection. Renewal applications shall be submitted to the department, on a form provided by the department, on or before the date specified in s. 440.08 (2) (a) and shall include the renewal fee determined by the department under s. 440.03 (9) (a) and evidence satisfactory to the department that the professional fund-raiser maintains a bond that is approved under sub. (2).440.44(1)(d)
(d) Within 20 days after receiving an application for registration or for renewal of a registration under this subsection, the department shall notify the professional fund-raiser of any deficiencies in the application, bond or fee payment.440.44(2)
(2) Bond. At the time of applying for registration under sub. (1), a professional fund-raiser shall file with and have approved by the department a bond, in which the professional fund-raiser is the principal obligor, in the sum of $20,000, with one or more responsible sureties whose liability in the aggregate as sureties at least equals that sum. If a professional fund-raiser does not at any time have custody of any contributions, the bond shall be in the sum of $5,000. The professional fund-raiser shall maintain the bond in effect as long as the registration is in effect. The bond, which may be in the form of a rider to a larger blanket liability bond, shall run to the state and to any person who may have a cause of action against the principal obligor of the bond for any liabilities resulting from the obligor's conduct of any activities as a professional fund-raiser or arising out of a violation of this subchapter or the rules promulgated under this subchapter.440.44(3)
(3) Solicitation notice. Before performing services under a contract with a charitable organization that is required to be registered under s. 440.42 (1), a professional fund-raiser shall file with the department a completed solicitation notice in the form prescribed by the department. The charitable organization on whose behalf the professional fund-raiser is acting shall file with the department a written confirmation that the solicitation notice and any accompanying material are true and complete to the best of its knowledge. The solicitation notice shall include all of the following:440.44(3)(a)
(a) A copy of the contract described in sub. (4).440.44(3)(b)
(b) The projected period during which the soliciting will take place.440.44(3)(c)
(c) The location and telephone number from which the soliciting will be conducted.440.44(3)(d)
(d) The name and residence address of each person responsible for directing and supervising the conduct of services under the contract described in sub. (4).440.44(3)(e)
(e) A statement of whether the professional fund-raiser will at any time have custody of contributions.440.44(3)(f)
(f) A full and fair description of the charitable purpose for which solicitations will be made.440.44(4)
(4) Contract.440.44(4)(a)
(a) A professional fund-raiser and a charitable organization that is required to be registered under s. 440.42 (1) shall enter into a written contract that clearly states the respective obligations of the professional fund-raiser and the charitable organization and states the amount of gross revenue, raised under the contract, that the charitable organization will receive. The amount of the gross revenue that the charitable organization will receive shall be expressed as a fixed percentage of the gross revenue or as an estimated percentage of the gross revenue, as provided in pars. (b) to (d).440.44(4)(b)
(b) If the compensation received by the professional fund-raiser is contingent upon the amount of revenue received, the amount of the gross revenue that the charitable organization will receive shall be expressed as a fixed percentage of the gross revenue.440.44(4)(c)
(c) If the compensation received by the professional fund-raiser is not contingent upon the amount of revenue received, the amount of the gross revenue that the charitable organization will receive shall be expressed as an estimated percentage of the gross revenue. The estimate shall be reasonable and the contract shall clearly disclose the assumptions upon which the estimate is based. The assumptions shall be based upon all of the relevant facts known to the professional fund-raiser regarding the solicitation to be conducted and upon the past performance of solicitations conducted by the professional fund-raiser. If the amount of the gross revenue that the charitable organization will receive is expressed as an estimated percentage of the gross revenue, the contract shall also guarantee that the charitable organization will receive a percentage of the gross revenue that is not less than the estimated percentage minus 10% of the gross revenue.440.44(4)(d)
(d) The estimated or fixed percentage of the gross revenue that the charitable organization will receive excludes any amount which the charitable organization is to pay under the contract as expenses, including the cost of merchandise or services sold or events staged.440.44(5)
(5) Reporting changes. Within 7 days after any material change occurs in information filed with the department under this section, the professional fund-raiser shall report the change, in writing, to the department.440.44(7)
(7) Financial report. Within 90 days after completing services under a contract described in sub. (4), and on the anniversary of the signing of a contract described under sub. (4) lasting more than one year, the professional fund-raiser shall, if the charitable organization is required to be registered under s. 440.42 (1), account in writing to the charitable organization for all contributions received and all expenses incurred under the contract. The charitable organization shall retain the accounting for at least 3 years and make it available to the department upon request.440.44(8)
(8) Depositing contributions. A professional fund-raiser shall deposit, in its entirety, a contribution of money received by the professional fund-raiser, on behalf of a charitable organization required to be registered under s. 440.42 (1), in an account at a financial institution within 5 days after its receipt. The account shall be in the name of the charitable organization. The charitable organization shall have sole control of all withdrawals from the account.440.44(9)
(9) Record keeping.440.44(9)(a)
(a) During the period in which a contract described in sub. (4) is in effect and for not less than 3 years after its completion, a professional fund-raiser shall retain all of the following records:440.44(9)(a)1.
1. The name and, if known to the professional fund-raiser, the address of each person contributing and the date and amount of the contribution.440.44(9)(a)2.
2. The name and residence address of each employee, agent or other person involved in the solicitation.440.44(9)(a)3.
3. A record of all contributions that are at any time in the custody of the professional fund-raiser.440.44(9)(a)4.
4. A record of all expenses incurred by the professional fund-raiser which the charitable organization is required to pay.440.44(9)(a)5.
5. A record of the location and account number of each financial institution account in which the professional fund-raiser deposits contributions.440.44(9)(b)
(b) If under a contract described in sub. (4) the professional fund-raiser sells tickets to an event and represents that the tickets will be donated to an organization for use by others, the professional fund-raiser shall retain for the period specified in par. (a) all of the following:440.44(9)(b)1.
1. The name and address of the donors and the number of tickets donated by each donor.440.44(9)(b)2.
2. The name and address of the organization receiving donated tickets and the number of donated tickets received by the organization.440.44(9)(c)
(c) The professional fund-raiser shall make all records described in this subsection available for inspection by the department upon request.440.44(10)
(10) Nondisclosure. The department may not disclose information under sub. (9) (a) 1. to any person except to the extent necessary for investigative or law enforcement purposes and except that the department may, if requested under s. 49.22 (2m), disclose information regarding the name, address or employer of or financial information related to an individual to the department of children and families or a county child support agency under s. 59.53 (5).440.44 - ANNOT.
History: 1991 a. 278, 315; 1995 a. 27; 1997 a. 191; 2007 a. 20.