Bond for Fundraisers / Charitable Trusts in Georgia

The bond for fundraisers / charitable trusts in Georgia (GEORGIA-Fundraiser / Charitable Trust Bond — Джорджия-Фандрейзер / Чаритабл Траст Бонд) is a form of financial guarantee that most fundraisers and charitable trusts must obtain to conduct business in Georgia. This bond (also known as Fundraiser Bond or Charitable Trust Bond) protects consumers and government agencies from fraudulent activities, contract violations, or other issues related to the activities of fundraisers and charitable organizations in Georgia.

Key Points to Know About the Fundraiser Bond

License Requirement: In most states in the U.S., including Georgia, fundraisers and charitable trusts are required to provide a bond as part of the licensing process to conduct business.
Consumer Protection: If a fundraiser or charitable trust violates the law, provides false information, or infringes upon consumer rights, clients or the state of Georgia can file a claim against the bond to recover damages.
Bond Amount: Depending on the state and the type of business, the bond amount may vary. For fundraisers in Georgia, this amount is typically $10,000. Organizations pay only a portion of this amount as a premium for the bond, which functions similarly to an insurance premium.
Fundraiser Obligations: Fundraisers and charitable trusts must comply with all laws and regulations governing their activities. Violating these regulations may lead to claims against the bond.

Thus, the bond for fundraisers is an important tool for ensuring trust and protecting the interests of consumers and state agencies.

What Does the Fundraiser Business Involve?

Fundraisers involve businesses or organizations that raise funds for various causes, including charities, community projects, or non-profit organizations.

Example: Boris and His Fundraising Business

Boris, a seasoned fundraiser in Georgia, runs a successful charitable trust. He organized various events and campaigns to raise funds for local schools. However, one day, a client accused Boris of misusing the funds raised. After an investigation, it was revealed that Boris failed to disclose certain fees and misallocated a portion of the donations. A claim was filed against his bond, and he lost his financial guarantee. As a result, Boris faced financial penalties and damage to his reputation.

How Much Does a Fundraiser Bond Cost?

The cost of a fundraiser bond in Georgia typically ranges from $100 to $150 per year. The standard rate is 1.500% of the bond amount, meaning a $10,000 bond will cost around $150 annually for financial protection.

Example: How Boris Lost His Bond

Boris, a fundraiser, violated state regulations by failing to disclose all information about a charitable event. Clients filed claims against his bond, and Boris lost his financial protection, facing legal and financial consequences.

Frequently Asked Questions

How Much Does a Fundraiser Bond Cost in Georgia?

The bond cost varies from $100 to $150 per year depending on the bond amount and the applicant’s credit history.

Do I Need a Bond to Operate as a Fundraiser in Georgia?

Yes, to obtain a license to operate as a fundraiser or charitable trust in Georgia, a bond is required.

How Can Agents Apply for a Fundraiser Bond in Georgia?

Agents can apply for the fundraiser bond in Georgia through their personal account at this link.

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Execution Notes
Bond must have an original signed Attorney in Fact signature.

Filing Method
Executed bond must be filed with the obligee by agent/principal.
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