Maryland Code, BUSINESS REGULATION 6-501
Terms Used In Maryland Code, BUSINESS REGULATION 6-501
- Charity: An agency, institution, or organization in existence and operating for the benefit of an indefinite number of persons and conducted for educational, religious, scientific, medical, or other beneficent purposes.
- Contract: A legal written agreement that becomes binding when signed.
- Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
- state: means :
(1) a state, possession, territory, or commonwealth of the United States; or
(2) the District of Columbia. See
(b) A fund-raising counsel or professional solicitor shall submit to the Secretary of State a copy of all agreements under subsection (a) of this section on or before the earlier of:
(1) the tenth day after the agreement is made; or
(2) the start of a charitable solicitation.
(c) The text that a professional solicitor or associate solicitor uses in a charitable solicitation shall be attached to the agreement and shall include:
(1) the name of the charitable organization for which the charitable solicitation is made;
(2) the specific charitable purpose that is to be advanced with charitable contributions as shown in the registration statement; and
(3) a statement that the person who solicits charitable contributions:
(i) is a paid fund-raiser; and
(ii) on request, will provide a copy of the charitable organization’s financial statement.
(d) An agreement between a professional solicitor, fund-raising counsel, or charitable organization and a person engaged to receive or hold contributions resulting from a professional solicitor or fund-raising counsel agreement shall be attached to the professional solicitor or fund-raising counsel agreement filed with the Secretary of State.
(e) An agreement between a charitable organization and a fund-raising counsel or professional solicitor may not contain a provision that states:
(1) that the charitable organization may not use contributions from a solicitation for its charitable purposes until some or all fund-raising expenses have been paid; or
(2) that the professional solicitor or fund-raising counsel may engage in a direct mail or other solicitation in the charity‘s name for the purpose of paying or offsetting preexisting fund-raising expenses.