Alaska Paid Solicitor for Charitable Organizations Bond: A Comprehensive Guide
This guide provides information for insurance agents to help all Paid Solicitors on Alaska Paid Solicitor for Charitable Organizations bonds
At a Glance:
- Lowest Cost: $125 per year or $13 per month, based on the business owner’s credit
- Bond Amount: $10,000
- Who Needs It: Paid Solicitors for Charitable Organizations
- Purpose: To ensure that paid solicitors pay all collected funds to the charitable organization they are representing
- Who Regulates Paid Solicitors in Alaska: The Alaska Department of Law (DOL)
Alaska Statute 45.68.010 requires all paid solicitors doing business with charitable organizations to register with their local municipality prior to conducting business in the state. The Alaska legislature enacted these regulations to ensure that solicitors transfer all funds raised to the charitable organizations they were collected for. In order to provide financial security for the enforcement of the registration laws, paid solicitors in Alaska must purchase and maintain a $10,000 Alaska Paid Solicitor for Charitable Organizations Bond.
What is the Purpose of the Alaska Paid Solicitor for Charitable Organizations Bond?
Alaska requires paid solicitors to purchase the Paid Solicitor for Charitable Organizations Bond as part of the registration process to become a Qualified Solicitor. The bond ensures that the public will receive compensation for financial harm if the solicitor fails to comply with registration regulations. In short, the bond is a type of insurance that protects the public if the solicitor breaks registration laws.
How Can an Insurance Agent Obtain an Alaska Paid Solicitor for Charitable Organizations Surety Bond?
BondExchange makes obtaining an Alaska Paid Solicitor for Charitable Organizations Bond easy. Simply login to your account and use our keyword search to find the “contractor” 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.
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Is a Credit Check Required for the Alaska Paid Solicitor for Charitable Organizations Bond?
Surety companies will run a credit check on the paid solicitor determine eligibility and pricing for the Alaska Paid Solicitor for Charitable Organizations bond. Paid solicitors with excellent credit and work experience can expect to receive the best rates. Paid solicitors 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 paid solicitor’s credit.
How Much Does the Alaska Paid Solicitor for Charitable Organizations Surety Bond Cost?
The Alaska Paid Solicitor for Charitable Organizations surety bond can cost anywhere between $125 to $500 per year or $13 to $50 per month. Insurance companies determine the rate based on a number of factors including your customer’s credit score and experience. The chart below offers a quick reference for the approximate bond cost on the $10,000 bond requirement.
|Credit Score||Bond Cost (1 year)||Bond Cost (1 month)|
|625 – 799||$150||$15|
|575 – 624||$375||$38|
|450 – 574||$500||$50|
*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.
How Does Alaska Define “Paid Solicitor”?
Alaska Statute 45.68.900 defines a paid solicitor as a person who is employed, procured, or engaged, directly or indirectly, by a paid solicitor to solicit. Exemptions to this definition include:
- Salaried officers
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 Paid Solicitors Register With the Alaska DOL?
The process for registering as a paid solicitor in Alaska is pretty complex. Below are the general guidelines, but paid solicitors should refer to the Registration Guide for details on the process.
Registration Period – The Alaska Paid Solicitor Registration expires on September 1 of each year and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Paid solicitors must purchase and maintain a $10,000 Paid Solicitor for Charitable Organization surety bond
Step 2 – Pay The Registration Fee
Paid solicitors must pay a $200 registration fee and indicate their registration period. Once the fee has been paid, an email will be sent to the paid solicitor with a link to complete the registration application.
Step 3 – Complete the Registration Form
Paid solicitors must include the following information on their registration form:
- Contact information
- Paid Solicitor’s Federal EIN (FEIN) or Tax ID Number
- Registration Period Date/End Date
- Paid Solicitor’s incorporation status
- Paid Solicitor’s entity type information
- Solicitation Methods
- Paid Solicitor’s registration status to solicit contributions in other states
- Paid Solicitor’s enjoined or otherwise prohibited status
- Connection status of:
- Paid Solicitor or any of its Owners
- Principal employees
- Contracts with Charitable Organizations – copies of contracts that are planned to solicit for ADL
- Signature -Can be signed by either the paid solicitor (if an individual) or an authorized owner, officer, director, or employee of the paid solicitor (if an organization).
Step 4 – Submit Additional Documentation
After completing the registration form, paid solicitors should email the following documents to [email protected]
- Paid Solicitor Solicitation Campaign Financial Report
- Copy of a Written Contract
- Copy of all Scripts
- A Campaign Financial Report
How Does an Alaska Paid Solicitor Renew Their Registration?
Paid solicitors can renew their registration online through the DOL’s registration portal. The Alaska Paid Solicitor Registration expires on September 1 of each year and must be renewed before the expiration date
What Are the Insurance Requirements for the Alaska Paid Solicitor Registration?
The State of Alaska does not require paid solicitors to obtain any form of liability insurance. Paid Solicitors must file a $10,000 paid solicitor for charitable organizations bond.
How Do Alaska Paid Solicitors File Their Bond?
Paid solicitors should email the completed bond form, including the power of attorney, to [email protected]. The Paid Solicitor for Charitable Organizations surety bond requires signatures from both the surety company that issues the bond and the paid solicitor. The surety company should include the following information on the bond form:
- Legal name, address, and email address of the entity/individual(s) buying the bond
- Bond amount
- Date the bond goes into effect
- Surety company’s name, address, and email address
What Can Paid Solicitors Do to Avoid Claims Against the Alaska Paid Solicitor for Charitable Organizations Bond?
To avoid claims on the Paid Solicitor for Charitable Organizations Bond, paid solicitors must follow all registration regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not solicit donations for an individual without receiving authorization from that individual
- Do not use a name, symbol, or statement to similar to another charitable organization that may mislead a person solicited for a contribution
- Do not engage in acts of deception/fraud
- Do not claim that a charitable organization will receive contributions by a paid solicitor that is a greater percentage than allowed by AS 45.68.020.
What Other Insurance Products Can Agents Offer Paid Solicitors in Alaska?
Alaska does not require paid solicitors to obtain any form of liability insurance. However, most reputable solicitors will seek to purchase 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 Alaska Paid Solicitor Customers?
Alaska conveniently provides a public database to search for active paid solicitors for charitable organizations 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.