South Carolina Professional Solicitor Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a South Carolina Professional Solicitor bond.
At a Glance:
- Lowest Cost: $150 per year or $15 per month
- Bond Amount: $15,000
- Who Needs it: All professional solicitors operating in South Carolina
- Purpose: To ensure the public will receive compensation for financial harm if the solicitor engages in acts of fraud or misrepresentation
- Who Regulates Professional Solicitors in South Carolina: The South Carolina Secretary of State
Background
South Carolina Statute 33-56-110 requires all professional solicitors operating in the state to register with the Secretary of State. The South Carolina legislature enacted the registration requirement to ensure that solicitors engage in ethical business practices. To provide financial security for the enforcement of the registration law, professional solicitors must purchase and maintain a $15,000 surety bond to be eligible for registration.
What is the Purpose of the South Carolina Professional Solicitor Bond?
South Carolina requires professional solicitors to purchase a surety bond as part of the application process to register with the Secretary of State. The bond ensures that the public will receive compensation for financial harm if the solicitor fails to abide by the regulations outlined in South Carolina Statute 33-56-110. Specifically, the bond protects the public if the solicitor engages in any acts of fraud, misrepresentation, or any other acts of malfeasance, nonfeasance, or misfeasance. In short, the bond is a type of insurance that protects the public if the professional solicitor violates the terms of their registration.
How Can an Insurance Agent Obtain a South Carolina Professional Solicitor Surety Bond?
BondExchange makes obtaining a South Carolina Professional Solicitor bond easy. Simply login to your account and use our keyword search to find the “Professional Solicitor” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the South Carolina Professional Solicitor Bond?
No, a credit check is not required for the South Carolina Professional Solicitor bond. Because the bond is considered relatively low risk, the same low rate is offered to all solicitors operating in the state regardless of their credit history.
How Much Does the South Carolina Professional Solicitor Bond Cost?
The South Carolina Professional Solicitor bond costs just $150 per year.
Who is Required to Purchase the Bond?
South Carolina requires professional solicitors to purchase a surety bond as a prerequisite to registering with the Secretary of State. To paraphrase South Carolina Statute 33-55-20, a professional solicitor is a person that seeks donations on behalf of a charitable organization or advises a charitable organization on how to solicit organizations, but not to the same extent as a professional fundraising counsel.
Officers, directors, and employees of an organization are considered to be professional solicitors unless they are paid a commission on the funds they raise.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Professional Solicitors Apply for a Registration in South Carolina?
Professional solicitors in South Carolina must navigate several steps to obtain a registration. Below are the general guidelines, but applicants should refer to the application form for details on the process.
Registration Period – All South Carolina Professional Solicitor Registrations are valid for one year from the date of issuance and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Professional solicitors must purchase and maintain a $15,000 surety bond and submit it with their application
Step 2 – Complete the Application
All South Carolina Professional Solicitor Registration applications should be mailed to the following address:
SC Secretary of State’s Office
Attn: Charities Division
1205 Pendleton Street, Suite 525
Columbia, SC 29201
Professional solicitors must complete the application in its entirety, and submit the following items:
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- $50 filing fee
- List of all charitable organizations the applicant has active contracts with
- Names and addresses of all current officers and directors
- List of all officers, directors, and owners for the past three years
- List of all employees and contractors including their job titles and employment status (full-time, part-time)
- List of all charitable organizations the applicant has contracted with in the past three years
Professional solicitors must submit a Notice of Solicitation Form and Joint Financial Report for each campaign they undertake.
Additionally, all individual professional solicitors working for a professional solicitation company must file an individual registration application and pay a $50 filing fee to the South Carolina Secretary of State.
How Do South Carolina Professional Solicitors Renew Their Registrations?
Professional solicitors should mail their completed renewal applications, including a $50 filing fee, to the following address:
SC Secretary of State’s Office
Attn: Charities Division
1205 Pendleton Street, Suite 525
Columbia, SC 29201
All South Carolina Professional Solicitor Registrations are valid for one year from the date of issuance and must be renewed before the expiration date. Individual professional solicitors must renew their registrations as well.
What are the Insurance Requirements for Professional Solicitors in South Carolina?
South Carolina does not require professional solicitors to purchase any form of liability insurance as a prerequisite to obtaining a business registration. Professional solicitors must purchase and maintain a $15,000 surety bond.
How do South Carolina Professional Solicitors File Their Bonds?
Professional solicitors should submit their completed bond forms, including the power of attorney, to the following address:
SC Secretary of State’s Office
Attn: Charities Division
1205 Pendleton Street, Suite 525
Columbia, SC 29201
The surety bond requires signatures from both the surety company that issues the bond and from a representative of the solicitation company. The surety company should include the following information on the bond form:
- Legal name and address of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Date of the bond is signed
What Can South Carolina Professional Solicitors do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, professional solicitors in South Carolina must follow all registration regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud or misrepresentation
- Do not engage in any acts of malfeasance, nonfeasance, or misfeasance
What Other Insurance Products Can Agents Offer Professional Solicitors in South Carolina?
Most reputable professional solicitors will purchase liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for South Carolina Professional Solicitor Customers?
South Carolina conveniently provides a public database of active professional solicitors in the state. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.