The following is designed to answer common questions you may have regarding registration and annual reports of fundraising counsel (FRC) and professional fundraising (PFR).

• What is a fundraising counsel?
• What is a professional fundraiser?
• When does a fundraising counsel need to be registered?
• Does a professional fundraiser need to be registered?
• Is a professional fundraiser and fundraising counsel required to maintain a surety bond?
• When do professional fundraiser and fundraising counsel need to complete their annual renewel?
• Must a professional fundraiser provide confirmation of a solicitation prior to accepting a contribution?
• Are there any restrictions on donated tickets?
• Are there any exceptions to the disclosure requirements?
• Are there any prohibited acts?
• I am a veteran, can the registration fee be waived?
  

What is a fundraising counsel?

A fundraising counsel is a person who, for compensation, plans, manages, advises, consults or prepares material for a charitable organization, but who does not solicit and who does not employ, engage, or provide any person who is paid to solicit contributions.

• Note: Fundraising counsel does not include an attorney, investment counselor, or employee of a financial institution who, in the normal course of his or her work as an attorney, investment counselor, or employee of a financial institution, advises a person to make a contribution, or a bona fide employee, volunteer, or salaried officer of a charitable organization. Wis. Stats. §202.11(6).
  
  

What is a professional fundraiser?

A professional fundraiser (Wis. Stats. § 202.11(7)) is a person who, for compensation, solicits in Wisconsin or employs, engages, or provides, directly or indirectly, another person who is paid to solicit. Professional fund-raiser does not include:

• an attorney, investment counselor, or employee of a financial institution who, in the normal course of his or her work as an attorney, investment counselor, or employee of a financial institution, advises a person to make a charitable donation
• a bona fide employee, volunteer, wholly owned subsidiary, or salaried officer of a charitable organization
• an employee of a temporary help agency who is placed with a charitable organization
• a bona fide employee of a professional fundraiser that is registered in Wisconsin

When does a fundraising counsel need to be registered?

A fundraising counsel must register if they will have custody of contributions.  A fundraising counsel must register if they intend to earn more than $1,000 in a year, regardless of whether they have custody of contributions.

• Note: If the fundraising counsel does earn more than $1,000 in a year, it is required to contract with the charitable organization in writing and file the contract with the department within 30 days after earning more than $1,000. The contract shall contain information that will enable the department to identify the services that the fund-raising counsel is to provide, including whether the fund-raising counsel will at any time have custody of contributions.

Does a professional fundraiser need to be registered?

Yes, a professional fundraiser must be registered if they solicit in this state.

Is a FRC/PFR required to maintain a surety bond?

Yes, Bond forms can be found on the forms page.

• A fundraising counsel is required to maintain a $20,000 surety bond.
• A professional fundraiser is required to maintain either a $20,000 bond if they have custody of any contributions or a $5,000 bond if they don't maintain custody of contributions.

When do FRC/PFR need to complete their annual renewal?

Renewal opens online June 1 must be completed by August 31st (or by Oct 31st with late fee).

Must a professional fundraiser provide confirmation of a solicitation prior to accepting a contribution?

Yes, (Wis. Stats. § 202.14(11)(a)) prior to orally requesting a contribution or contemporaneously with a written request for a contribution, a professional fundraiser shall clearly and conspicuously disclose all of the following:

• The name of the charitable organization, as it appears on file with the department, on whose behalf the solicitation is being made.
• A clear description of the primary charitable purpose for which the solicitation is made.
• That the contribution is not tax-deductible, if this disclosure is applicable.
• The name of the professional fundraiser, as it appears on file with the department, and that the solicitation is being conducted by a professional fundraiser who is being paid for his, her, or its services.
• If the individual acting on behalf of the professional fundraiser identifies himself or herself by name, the individual's legal name.
• Upon request by a person from whom a charitable contribution is sought, the percentage of the contribution that will be paid to the charitable organization as a result of the person's contribution. If the professional fundraiser does not receive a percentage of the contribution, the professional fundraiser shall disclose the dollar amount it was to or will receive.
• Unless exempted, any written solicitation, and any confirmation, receipt, or reminder shall conspicuously state the following verbatim: "A financial statement of the charitable organization disclosing assets, liabilities, fund balances, revenue, and expenses for the preceding fiscal year will be provided to any person upon request." These financial statements shall, at a minimum, divide expenses into categories of management and general, program services, and fundraising.
• If the solicitation is made orally, the professional fundraiser shall, within 5 days after the solicitation, send to each person contributing or pledging to contribute a written confirmation, receipt, or reminder of the contribution.

Are there any restrictions on donated tickets?

Yes, (Wis. Stats. § 202.14(11)(e)) The professional fundraiser may not represent that tickets to an event will be donated to an organization for use by others unless all of the following conditions are met:

• The professional fundraiser has a commitment, in writing, from the organization stating that the organization will accept donated tickets and specifying the number of donated tickets that the organization is willing to accept.
• The professional fundraiser solicits contributions for donated tickets from no more contributors than the number of tickets that the organization has agreed to accept.

Are there any exceptions to the disclosure requirements?

Yes, a charitable organization that operates solely within one community and that received less than $50,000 in contributions during its most recently completed fiscal year may apply for an exemption from the disclosure requirements.

Are there any prohibited acts?

Yes, (Wis. Stats. § 202.16(1)) no charitable organization, fundraising counsel, or professional fundraiser may, in the conduct of his, her, or its affairs, including the planning, management, or execution of a solicitation or charitable sales promotion, do any of the following:

• Use an unfair or deceptive act or practice.
• Imply that a contribution is for or on behalf of a charitable organization or use any emblem, device or printed matter belonging to or associated with a charitable organization without first being authorized in writing to do so by the charitable organization.
• Use a name, symbol or statement so closely related or similar to that used by another charitable organization that the use of the name, symbol or statement would tend to confuse or mislead a person being solicited.
• Represent or lead anyone in any manner to believe that the person on whose behalf a solicitation or charitable sales promotion is being conducted is a charitable organization or that the proceeds of the solicitation or charitable sales promotion will be used for charitable purposes if that is not the fact.
• Lead anyone in any manner to believe that another person sponsors, endorses, or approves a solicitation or a charitable sales promotion if the other person has not sponsored, endorsed or approved the solicitation or charitable sales promotion in writing.
• Use the fact of registration to lead any person to believe that the registration constitutes an endorsement or approval by the state.
• Represent or cause another to represent that contributions are tax-deductible unless they so qualify under the federal Internal Revenue Code.
• Represent or cause another to represent that the person has previously approved or agreed to make a contribution when in fact the person has not given this approval or agreement.
• Represent or cause another to represent that the person has previously contributed to the same organization or for the same purpose when in fact the person has not so contributed.
• Fail to apply contributions in a manner substantially consistent with the solicitation or the purposes expressed in the solicitation.
• Represent in any manner that registration constitutes an endorsement or approval by the department or the department of justice.

I am a veteran, can the registration fee be waived?

The Wisconsin Department of Veterans Affairs (WDVA) determines eligibility for this program. WDVA will issue a voucher to applicants who are deemed eligible for a fee waiver. To review eligibility rules or apply for a voucher, visit the WDVA’s Eligibility web page.