An agreement between a charitable organization and a fund–raising counsel or professional solicitor and any subcontract or other contract in furtherance of such an agreement shall be in writing. A fund–raising counsel or professional solicitor shall submit to the Secretary of State a copy of all agreements under subsection (a) of this section on or before the earlier of: the tenth day after the agreement is made; or the start of a charitable solicitation. The text that a professional solicitor or associate solicitor uses in a charitable solicitation shall be attached to the agreement and shall include: the name of the charitable organization for which the charitable solicitation is made; the specific charitable purpose that is to be advanced with charitable contributions as shown in the registration statement; and a statement that the person who solicits charitable contributions: is a paid fund–raiser; and on request, will provide a copy of the charitable organization’s financial statement. An agreement between a professional solicitor, fund–raising counsel, or charitable organization and a person engaged to receive or hold contributions resulting from a professional solicitor or fund–raising counsel agreement shall be attached to the professional solicitor or fund–raising counsel agreement filed with the Secretary of State. An agreement between a charitable organization and a fund–raising counsel or professional solicitor may not contain a provision that states: that the charitable organization may not use contributions from a solicitation for its charitable purposes until some or all fund–raising expenses have been paid; or that the professional solicitor or fund–raising counsel may engage in a direct mail or other solicitation in the charity’s name for the purpose of paying or offsetting preexisting fund–raising expenses.

A professional solicitor shall submit a fund-raising notice to the Secretary of State before starting a public solicitation. The notice shall be submitted on the form that the Secretary of State provides. The notice shall contain the information that the Secretary of State requires, including each fund-raising method to be used and the dates set for each fund-raising drive, event, or campaign of the charitable solicitation.

This section does not apply to a raffle or other game of chance that a charitable organization holds in a county under the laws applicable to the county. If a person, in connection with a written charitable solicitation, offers a contest, sweepstakes, or other promotion, the person shall disclose in writing to each offeree: the manufacturer’s suggested retail price or comparable retail price of each prize offered; the conditions to be met to receive a prize; and that to receive the prize offered in the promotion the offeree may not be required to: buy goods or services; pay money; or submit to a promotion. If the contest, sweepstakes, or other promotion involves awarding prizes by chance, the person shall also disclose in writing to each offeree: the exact number of prizes offered in each category; how to get a list of winners, if a prize with a retail price or monetary value of more than $100 is offered; whether each prize offered will be awarded; the date when winners will be determined; and the odds of winning each prize, if they can be calculated in advance; or that the odds of winning will be determined by the number of entries, if the odds cannot be calculated in advance. Each disclosure required under this section shall appear on the first page of the prize notification document.

Within 30 days after receiving a charitable contribution as a result of a charitable solicitation by telephone, a professional solicitor shall send the contributor a written receipt that contains: the name and address of the professional solicitor; a disclosure statement; and other information that the Secretary of State requires.

A professional solicitor shall deposit each charitable contribution that the professional solicitor receives into a bank account established by the charitable organization. A professional solicitor may not be authorized to withdraw money from the bank account of the charitable organization.

Within 3 months after the end of each fund-raising drive, campaign, or event, a professional solicitor shall submit to the Secretary of State, on the form that the Secretary of State provides, an accounting under oath of all money received and disbursed on a gross basis. The professional solicitor and an authorized official of the charitable organization for which the professional solicitor acts shall sign the accounting and certify that it is true to the best of their knowledge.

For each fund–raising drive, campaign, or event, a professional solicitor shall keep records that show: all compensation received for services rendered and expenses incurred; the name and address of each associate solicitor; the amount of compensation paid to each associate solicitor and the dates when payments were made; the name, address, and telephone number of each person solicited who made a pledge or charitable contribution; the date of each charitable solicitation; each amount pledged or contributed; and if a refund was requested, the date the refund was made. The professional solicitor shall keep the records for at least 3 years after the end of the fund–raising drive, campaign, or event. A professional solicitor shall make the records available to the Secretary of State for inspection and copying upon reasonable notice and at any hearing that the Secretary of State holds. If the records of an organization are maintained outside the State, upon reasonable notice, the organization shall make the records or certified copies of the records available at the Office of the Secretary of State.

Charitable organizations and charitable representatives and the directors, officers, partners, and trustees of charitable organizations and charitable representatives are fiduciaries as to the charitable contributions they collect or spend.

The only persons liable under this section are: charitable organizations; charitable representatives; and officers, directors, partners, or trustees of charitable organizations or charitable representatives. Except as provided in subsection (d) of this section, a person who willfully fails to comply with a requirement of this title as to a charitable contribution made because of a charitable solicitation is liable to the donor of the charitable contribution for: actual damages that the donor sustains because of the failure; punitive damages that the court allows, not exceeding 3 times the actual damages; and reasonable attorney’s fees and costs of the action, if damages are awarded. Except as provided in subsection (d) of this section, a person who is grossly negligent in failing to comply with a requirement of this title as to a charitable contribution made because of a charitable solicitation is liable to the donor of the charitable contribution for: actual damages that the donor sustains because of the failure; and reasonable attorney’s fees and costs of the action, if damages are awarded. A person is not liable under this section if the person establishes by a preponderance of the evidence that, at the time of the failure to comply with a requirement under this title, the person followed reasonable procedures to comply.