Get An Instant Quote on Michigan Professional Fund Raiser Bond Now
| Michigan – Professional Fund Raiser Bond – All Other Organizations ($10,000) |  |
| Michigan – Professional Fund Raiser Bond – Public Safety Organizations ($25,000) | |
Introduction
A Michigan Professional Fund Raiser is any individual or business that, for compensation, solicits charitable contributions or manages fundraising campaigns on behalf of nonprofit organizations within the state. Professional fund raisers are required to register with the Michigan Attorney General’s Charitable Trust Section and adhere to all solicitation requirements under the Charitable Organizations and Solicitations Act (MCL 400.271 et seq.). A Professional Fund Raiser Bond, which guarantees integrity and responsibility in the management of charitable finances, is necessary to safeguard organizations and contributors.
Explanation: Michigan Professional Fund Raiser Bond
A Michigan Professional Fund Raiser Bond is a type of surety bond required by the Michigan Attorney General’s Office – Charitable Trust Section for individuals or businesses acting as professional fundraisers in the state.
Under Michigan’s Charitable Organizations and Solicitations Act (MCL 400.271 et seq.), professional fundraisers must be registered and bonded before soliciting charitable contributions on behalf of nonprofit organizations.
The bond serves as a financial guarantee that the fundraiser will comply with all state laws and regulations governing charitable solicitations.
Purpose of the Bond
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Protects the public and charities: If a professional fundraiser engages in fraud, misrepresentation, or mishandling of charitable funds, the bond provides a source of compensation for harmed charities or donors.
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Ensures compliance: It assures the State of Michigan that the fundraiser will follow all applicable solicitation laws and ethical standards.
Read our Michigan Notary Bond.
Who Needs the Bond?
Any professional fund raiser (whether an individual or firm) who, for compensation, solicits funds or manages fundraising campaigns for charitable organizations in Michigan is required to obtain this bond as part of their licensing/registration process with the Attorney General’s Office.
How It Works
- Principal: The professional fund raiser purchasing the bond.
- Obligee: The Michigan Attorney General (on behalf of the public and charitable organizations).
- Surety: The bonding company that issues the bond and guarantees payment if the fundraiser violates the law.
If the fundraiser commits misconduct, affected parties may file a claim against the bond. The surety may pay valid claims up to the bond amount, but the fundraiser must then reimburse the surety.
See our Michigan – Non-Depository Sales Finance Company Bond.
Process of Getting the Michigan Professional Fund Raiser Bond
Here’s a detailed step-by-step process for obtaining a Michigan Professional Fund Raiser Bond:
- Determine Bond Requirement
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Confirm with the Michigan Attorney General – Charitable Trust Section that you need a Professional Fund Raiser Bond under the Charitable Organizations and Solicitations Act (MCL 400.271 et seq.).
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- Choose a Licensed Surety Bond Provider
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Contact a bonding company authorized to issue surety bonds in Michigan.
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Provide details about your fundraising business (ownership, financials, and experience).
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- Complete a Bond Application
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Fill out the surety’s bond application form.
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You may need to provide:
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Business/entity details
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Owner(s) personal information
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Credit history (since pricing is credit-based)
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- Get a Bond Quote and Pay Premium
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The surety will assess your risk profile and provide a quote.
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The cost is usually a small percentage of the bond amount, depending on creditworthiness.
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- Bond Issuance
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After payment, the surety issues the Michigan Professional Fund Raiser Bond.
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You will receive an official bond document (with signatures and seal).
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Conclusion
The Michigan Professional Fund Raiser Bond is a vital safeguard that ensures fundraisers operate with integrity, transparency, and in compliance with state law. By securing this bond, professional fund raisers demonstrate their commitment to protecting charities and donors, while maintaining eligibility to legally conduct fundraising activities in Michigan.
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Frequently Asked Questions (FAQs)
Here’s a FAQ section tailored for the Michigan Professional Fund Raiser Bond:
What happens if a claim is made against the bond?
If a professional fund raiser violates the law or mishandles charitable funds, affected parties may file a claim. The surety company may compensate valid claims up to the bond amount, but the fundraiser is ultimately responsible for reimbursing the surety.
What if the bond lapses or is not maintained?
Failure to maintain a valid bond can result in suspension, denial, or revocation of the professional fund raiser’s registration in Michigan.
How often must the bond be renewed?
The bond is generally renewed annually, in alignment with the professional fund raiser’s registration period. Renewal paperwork and fees should be submitted before expiration to avoid compliance issues.
What penalties exist for operating without a bond?
Conducting fundraising without a valid bond may result in civil penalties, fines, and suspension or revocation of registration by the Michigan Attorney General.
Can I use one bond for multiple states?
No. The Michigan Professional Fund Raiser Bond only applies to fundraising activities within Michigan. Other states have separate bonding requirements.
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