Alabama Professional Fundraiser or CCV Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain an Alabama Professional Fundraiser or Commercial Co-Venturer Bond
At a Glance:
- Lowest Cost: $100 per year or $10 per month based on the applicant’s credit
- Bond Amount: $10,000
- Who Needs it: All professional fundraisers and commercial co-venturers (CCVs) operating in Alabama
- Purpose: To ensure the public will receive compensation for any damages if the fundraiser or co-venturer violates registration law
- Who regulates Professional Fundraisers and CCVs in Alabama: The Office of the Alabama Attorney General
Background
Alabama Statute 13A-9-71 requires all professional fundraisers and commercial co-venturers operating in the state to register with the Attorney General’s Office. The Alabama legislature enacted the registration laws and regulations to ensure that fundraisers and co-venturers engage in ethical business practices. To provide financial security for the enforcement of the registration requirement, professional fundraisers and commercial co-venturers must purchase and maintain a $10,000 surety bond to be eligible for registration.
What is the Purpose of the Alabama Professional Fundraiser or CCV Bond?
Alabama requires professional fundraisers and commercial co-venturers to purchase a surety bond as part of the application process to obtain a business registration. The bond ensures that the public will receive compensation for financial harm if the fundraiser or co-venturer fails to comply with the regulations set forth in Alabama statute 13A-9-71. Specifically, the bond protects the public in the event the fundraiser or co-venturer engages in any acts of fraud or solicits funds on behalf of a charitable organization without the organization’s permission. In short, the bond is a type of insurance that protects the public if the professional fundraiser or commercial co-venturer breaks registration laws.
How Can an Insurance Agent Obtain an Alabama Professional Fundraiser or CCV Bond?
BondExchange makes obtaining an Alabama Professional Fundraiser or CCV bond easy. Simply log in to your account and use our keyword search to find the “fundraiser” 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 at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
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Is a Credit Check Required for the Alabama Professional Fundraiser or CCV Bond?
Surety companies will run a credit check on the owners of the fundraising/CCV company to determine eligibility and pricing for the Alabama Professional Fundraiser or CCV bond. Owners with excellent credit and work experience can expect to receive the best rates. Owners with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the owner’s credit.
How Much Does the Alabama Professional Fundraiser or CCV Bond Cost?
The Alabama Professional Fundraiser or CCV bond can cost anywhere between $100 to $750 per year or $10 to $75 per month. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below offers a quick reference for the bond cost on a $10,000 bond requirement.
$10,000 Professional Fundraiser or CCV Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 680+ | $100 | $10 |
| 625 – 679 | $150 | $15 |
| 575 – 624 | $375 | $38 |
| 550 – 574 | $500 | $50 |
| 500 – 549 | $750 | $75 |
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
Who is Required to Purchase the Bond?
Alabama requires all professional fundraisers and commercial co-venturers to purchase a $10,000 surety bond prior to obtaining a business registration. To paraphrase Alabama statute 13A-970, a professional fundraiser is any individual that solicits contributions on behalf of a charitable organization. Employees of the charity are exempt from this definition unless their compensation is directly tied to the number of funds they raise. A commercial co-venturer is any individual or business that advertises a charitable or religious organization for personal profit.
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 Alabama Professional Fundraisers and Commercial Co-Venturers Apply for a Registration?
Professional fundraisers and commercial co-venturers in Alabama must navigate several steps to secure their registration. Below are the general guidelines, but applicants should refer to the registration statutes for details on the process.
Registration Period – All Alabama Professional Fundraiser or Commercial Co-Venturer registrations expire on September 30 of each year and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Professional fundraisers and commercial co-venturers must purchase and maintain a $10,000 surety bond.
Step 2 – Complete the Application
All Alabama professional fundraiser and commercial co-venturer registration applications should be completed online here. Fundraisers and co-venturers must complete the application in its entirety, and pay a $100 registration fee.
How Do Alabama Professional Fundraisers and CCVs Renew Their Registration?
Alabama professional fundraisers and commercial co-venturers should submit their completed renewal application, including a $100 fee, online here. All Alabama Professional Fundraiser or Commercial Co-Venturer registrations expire on September 30 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Alabama Professional Fundraisers and CCVs?
Alabama does not require professional fundraisers and commercial co-venturers to purchase any form of liability insurance as a prerequisite to obtaining a business registration. Fundraisers and co-venturers must purchase and maintain a $10,000 surety bond.
How Do Alabama Professional Fundraisers and CCVs File Their Bond?
Professional fundraisers and commercial co-venturer should mail the completed bond form, including the power of attorney, to the following address.
Office of the Attorney General
Consumer Protection
PO Box 300152
Montgomery, Alabama 36130-0152
The surety bond requires signatures from both the surety company that issues the bond as well as the principal. The surety company should include the following information on the bond form:
- Legal name and address of entity/individual(s) buying the bond
- Surety company’s name and address
- The term the bond is active for
- Date the bond is signed
What Can Alabama Professional Fundraisers and CCVs Do to Avoid Claims Against Their Bonds?
To avoid claims on their bonds, fundraisers and co-venturers in Alabama 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
- Do not solicit funds or advertise on behalf of a charitable or religious organization without their consent
What Other Insurance Products Can Agents Offer Professional Fundraisers and CCVs in Alabama?
Alabama does not require professional fundraisers and commercial co-venturers to purchase any form of liability insurance as a prerequisite to obtaining a business registration. However, most reputable businesses will seek to obtain this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability 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 Alabama Professional Fundraiser or CCV Customers?
Alabama conveniently provides a public database to search for active professional fundraisers and commercial co-venturers operating in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.