Any change in the terms of the contract must be consistent with the clause stipulating how any changes must take effect. Failure to comply with these legal requirements is a misdemeanour for the company and the charity should report the matter to the charity, so it is important that a written agreement be reached before a commercial participation agreement begins. The law applies regardless of the label that the parties can choose to give the agreement when the activities fall within the definition of a commercial participation agreement. For example, commercial participation agreements are: when a third-party fundraiser falls within the definition of “professional fundraiser,” the agreement must include the details of the invitation they must provide, as well as the fees and expenses paid by professional fundraising. When a Scottish charity has reached an agreement on the activity of a trading partner operating in England and Wales (or where an English or Welsh charity has entered into an agreement on the activity of a trading partner operating in Scotland), it must ensure that the contract meets the legal requirements of the country where the fund-raising is being carried out. Before requesting money or other real estate, a professional fundraiser must have a written agreement with you. The agreement must be signed by both you and on behalf of you and professional fundraising. Kathryn Heath is the senior partner in Stephens Scown`s ip/IT and data protection team and recently joined an international charity for 10 months that provides legal assistance in a number of areas. If you need advice on how to protect your intellectual property or enter into commercial contracts, please call 01872 265100 or email IP. IT@stephens-scown.co.uk.
While legislation may be seen as an additional impedal to implementation, we always advise collaborative parties (whether the rules apply or not) to enter into a clear written agreement from the outset to set expectations, minimize the likelihood of misunderstandings at a later stage, and ensure that an organization properly protects its intellectual property. Charities that regularly enter into such agreements should already have standard agreements that can be used to meet the requirements of the legislation. The 2005 law also states that if a professional fundraiser or a commercial participant raises on behalf of a benevolent organization without a fundraising agreement, either the benevolent organization or the CSO (if the organization is a charitable organization) can apply to the Sheriff`s Court for an interdikt (court order) to stop unauthorized fundraising. An interdator can only be granted if the sheriff is satisfied that the fundraiser will likely continue to be funded without a fundraising agreement. However, it is important to keep in mind that an agreement between a charity and a business, depending on your structure, may fall under certain regulations of the Charities Act 1992 and the Fund-Raising Regulations 1994 (as amended) that apply to both the charity and the company if they are “commercial participants”. When a company associates donations with sales, is it a “commercial participant”? Professional fundraisers or business participants with a fundraising agreement with a benevolent organization must provide the benevolent organization with all registrations and information related to the agreement if requested. What information should the fundraising agreement contain? A professional fundraiser or business participant must give you money as soon as possible, in any case within 28 days, unless they have a reasonable apology.