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Protect Yourself:
Get It In Writing

by the AFRDS


More and more fundraising companies are asking for written contracts. It's a good idea because it protects you, your organization and the fundraising company to have all major decisions in writing. With a contractual agreement, you both assume responsibility for complying with the terms, but you also begin the fundraising project with a clear understanding of who is responsible for what. Here are some things to look for when reviewing a fundraising contract:

  • Double check all the numbers. Are the costs, percentages, etc., the same as those you agreed on?

  • Are all of the services you want included? (For example: kick-off presentations, incentive programs, tallying, packing, shipping.) Is it clear that the company covers the cost for these services?

  • Are the promotional materials you reviewed and approved listed? (take-home brochures, display kit, sample packs, etc.)

  • Are dates for payment and product delivery included and consistent with your verbal agreement?

  • Is there a clause covering the procedure for handling damaged, unsold, or returned merchandise?

  • Also, make sure the contract is clearly an agreement between two organizations, NOT between two individuals. Signatures on the written contract should appear:


    ___________________________________
    (fundraising company name)

    by:________________________________
    (company's representative)

    ___________________________________
    (organization's name)

    by:________________________________
    (organization's representative)

References:

PTA Money Matters, 1994 National PTA
The Official Soccer Fundraiser's Guide/Booster Clubs of America
"Improving Your Fund-Raising Sales," John R. Olsen, Ph.D., Athletic Purchasing & Facilities, July 1982.
AFRDS, model contract

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About the Author:

This article is from the Spring 1997 issue of the Fundraising Edge, an online publication of the Association of Fund Raisers and Direct Sellers and is reprinted with permission. Visit their web site at http://www.afrds.org/ for more information and a look at the complete issues of the Fundraising Edge.



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