A third-party fundraising agreement is a contract between a nonprofit organization and a third-party fundraiser. Under this agreement, the third-party fundraiser agrees to raise funds for the nonprofit organization by soliciting donations from donors, sponsors, or other supporters.
This type of fundraising agreement is increasingly popular among nonprofits as it allows them to benefit from the fundraising expertise and resources of an external organization. However, it also requires careful management and planning to ensure that both parties achieve their goals while maintaining a positive relationship.
There are several key elements that should be included in a third-party fundraising agreement. These include:
1. Description of the parties involved: The agreement should clearly state the names and contact information of the nonprofit organization and the third-party fundraiser.
2. Scope of the agreement: The agreement should clearly define the fundraising activities to be undertaken by the third-party fundraiser, including any restrictions or limitations on their activities.
3. Fundraising goals and benchmarks: The agreement should set out specific fundraising goals and benchmarks that the third-party fundraiser is expected to achieve. It should also specify how these goals will be measured and evaluated.
4. Compensation and expenses: The agreement should specify how the third-party fundraiser will be compensated for their services, as well as any expenses that will be reimbursed.
5. Reporting and accountability: The agreement should require the third-party fundraiser to provide regular reports on their fundraising activities and progress towards the fundraising goals.
6. Donor information and privacy: The agreement should include provisions regarding the protection of donor information and privacy, including how donor information will be collected, stored, and used.
7. Termination and dispute resolution: The agreement should include provisions for terminating the agreement if either party fails to meet their obligations, as well as a process for resolving any disputes that may arise.
In conclusion, a well-drafted third-party fundraising agreement can be a valuable tool for nonprofit organizations looking to raise funds and expand their reach. However, careful planning and management are essential to ensure that the agreement is structured in a way that benefits both parties and achieves their shared goals. By including the key elements outlined above, nonprofits can help ensure the success of their third-party fundraising efforts.