§ 173-a. Contracts of professional fund raisers, fund raising counsel\nand commercial co-venturers; closing statements; final accountings. 1.\nNo person shall act as a professional fund raiser, fund raising counsel\nor commercial co-venturer before he has a written contract with the\ncharitable organization or other person benefitting from his services. A\nprofessional fund raiser or fund raising counsel shall within ten days\nafter its execution by the parties thereto file with the attorney\ngeneral a copy of each contract entered into between such professional\nfund raiser or fund raising counsel and a charitable organization\nrequired to be registered pursuant to this article, certified under\npenalties for perjury by said professional fund raiser or fund raising\ncounsel to be a true
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§ 173-a. Contracts of professional fund raisers, fund raising counsel\nand commercial co-venturers; closing statements; final accountings. 1.\nNo person shall act as a professional fund raiser, fund raising counsel\nor commercial co-venturer before he has a written contract with the\ncharitable organization or other person benefitting from his services. A\nprofessional fund raiser or fund raising counsel shall within ten days\nafter its execution by the parties thereto file with the attorney\ngeneral a copy of each contract entered into between such professional\nfund raiser or fund raising counsel and a charitable organization\nrequired to be registered pursuant to this article, certified under\npenalties for perjury by said professional fund raiser or fund raising\ncounsel to be a true and correct copy of such contract. When the\nservices to be performed under such contracts include the oral\nsolicitation of funds from the public, such oral presentations shall be\ndeemed to be part of the contract and shall be reduced to a writing\nwhich in the case of a professional fund raiser shall be filed with the\nattorney general by the registrant at the time such contracts are filed.\nIf there is any change in the presentation filed with the attorney\ngeneral, the registrant shall notify the attorney general in writing\nwithin five days of such change. No services shall be performed under\nsuch a contract until the professional fund-raiser shall have received\nan acknowledgement from the attorney general of the receipt of a copy of\nsuch contract or such contract shall have been on file with the attorney\ngeneral for at least fifteen days, whichever is shorter. Provided,\nhowever, that no services shall be performed pursuant to such contract\nif, within fifteen days of filing, the attorney general has notified the\nprofessional fund raiser or fund raising counsel and the charitable\norganization of any deficiencies in the contract and/or the registration\nand filing under this article. True and correct copies of such contracts\nshall be kept on file in the offices of the charitable organization and\nthe professional fund raiser, fund raising counsel or commercial\nco-venturer during the term thereof and until the expiration of a period\nof three years subsequent to the date the solicitation of contributions\nprovided for therein actually terminates. Within ninety days after the\ntermination of any such contract, the professional fund raiser shall\nfile with the attorney general a closing statement, signed under\npenalties for perjury by all parties to the contract on forms prescribed\nby the attorney general. Such statement shall disclose gross revenue,\nall expenditures incurred in the performance of the contract, and all\nfunds paid to the professional fund raiser and charitable organization.\nIn the event that a contract term is longer than a one year period, the\nprofessional fund raiser shall file an interim statement, at least\nannually. No person shall act as a sub-contractor on behalf of another\nprofessional fund raiser prior to obtaining a written contract with such\nprofessional fund raiser and written consent from the charity on whose\nbehalf fundraising activities are to be conducted pursuant to such\ncontract, and such written consent shall have been attached to such\ncontract and filed with the attorney general pursuant to subdivision one\nof this section. Willful violation of this section shall be a\nmisdemeanor.\n 2. Every contract between a professional fund raiser and a charitable\norganization shall contain or shall be deemed to contain a provision\nthat within five days of receipt by the professional fund raiser or any\nother person the gross revenue received from any solicitation shall be\ndeposited in a bank account under the exclusive control of the charity.\n 3. Within ninety days after the termination of a sales promotion\nadvertised to benefit a charitable organization, a commercial\nco-venturer shall provide such organization with an accounting stating\nthe number of items sold, the dollar amount of each sale and the amount\npaid or to be paid to the charitable organization. In the event that any\nsuch sales promotion is longer than a one year period, the commercial\nco-venturer shall provide the charitable organization with an interim\nreport, at least annually.\n 4. A charitable organization which enters into a contract with a\ncommercial co-venturer shall file with the attorney general on the date\nthat the next financial report is due to be filed the following\ninformation on forms prescribed by the attorney general and signed under\npenalties for perjury by an officer: (a) a list of the names and\naddresses of all commercial co-venturers authorized by the charitable\norganization to use its name during the year covered by that financial\nreport and, if known, during the year following the year covered by the\nfinancial report, (b) a statement of the financial terms and any\nconditions of each co-venture contract, and (c) a statement whether each\ncommercial co-venturer has provided the charitable organization with an\naccounting as prescribed by subdivision three of this section.\n