Fundraising Advisory Agreement: What It Is and Why You Need It
If you`re involved in fundraising activities for your nonprofit organization, you may have come across the term “fundraising advisory agreement.” This legal document is an essential tool for managing your fundraising activities and protecting your organization`s interests. In this article, we`ll go over what a fundraising advisory agreement is, why you need it, and what it should include.
What is a Fundraising Advisory Agreement?
A fundraising advisory agreement is a legal document that outlines the relationship between your nonprofit organization and a fundraising advisor. This advisor could be an individual, a consulting firm, or another organization that provides fundraising advice and services. The agreement sets out the terms and conditions of this relationship, including the scope of services, payment terms, confidentiality, and liability.
Why Do You Need a Fundraising Advisory Agreement?
A fundraising advisory agreement is essential for several reasons. First, it helps you define the scope of services that your fundraising advisor will provide. This way, everyone involved knows what is expected of them and what they will be paid for. It also helps you avoid misunderstandings and disagreements down the road.
Second, a fundraising advisory agreement can help protect your organization`s interests. By clearly outlining the terms and conditions of the relationship, you can limit your liability and ensure that your advisor is held accountable for any mistakes or misconduct.
What Should a Fundraising Advisory Agreement Include?
A fundraising advisory agreement should include several key components, including:
– Scope of Services: This section should outline the specific services that the advisor will provide, including any deadlines or milestones.
– Payment Terms: This section should specify how the advisor will be paid, including the amount, timing, and method of payment.
– Confidentiality: This section should outline any confidentiality requirements, including what information the advisor can and cannot disclose.
– Liability: This section should outline any limits on liability and what happens if the advisor causes any damage or harm to your organization.
– Termination: This section should outline the circumstances under which the agreement can be terminated, including any notice requirements.
A fundraising advisory agreement is an essential tool for managing your nonprofit organization`s fundraising activities. By defining the scope of services, payment terms, confidentiality, liability, and termination, you can protect your organization`s interests and avoid misunderstandings and disagreements. If you`re working with a fundraising advisor, don`t hesitate to draft a fundraising advisory agreement and have it reviewed by a legal expert.