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This entry was published on 2014-09-22
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SECTION 174-A
Contracts with charitable organizations
Executive (EXC) CHAPTER 18, ARTICLE 7-A
§ 174-a. Contracts with charitable organizations. 1. Whenever a
charitable organization contracts with a professional fund raiser or
fund raising counsel or commercial co-venturer, the charitable
organization shall have the right to cancel the contract without cost,
penalty, or liability for a period of fifteen days following the date on
which said contract is filed with the attorney general pursuant to the
provisions of this article, regardless of the date of execution of said
contract. Any provision in the contract that is intended to waive this
right of cancellation shall be void and unenforceable.

2. A charitable organization may cancel a contract signed pursuant to
subdivision one of this section by a written notice of cancellation. If
given by mail, cancellation shall be deemed effective when deposited in
a mailbox, properly addressed and postage prepaid. The notice shall be
sufficient if it states that the charitable organization does not intend
to be bound by the contract.

3. Whenever a charitable organization cancels a contract pursuant to
the provisions of this section, it shall mail a duplicate copy of the
notice of cancellation to the attorney general, at the address
designated for that purpose.

4. Every contract entered into pursuant to subdivision one of this
section shall contain, in a conspicuous typeface:

(a) a concise, accurate statement of the charitable organization's
right to cancel;

(b) a concise, accurate statement of the period during which the
contract may be cancelled;

(c) the address to which the notice of cancellation is to be sent;

(d) the address of the attorney general to which a duplicate of the
notice of cancellation is to be sent; and

(e) a clear statement of the financial arrangement including, if
applicable, a statement of the percentage of the total funds collected
on behalf of the charitable organization which shall be paid to the
professional fund raiser or any other person for purposes other than the
exclusive benefit of the charitable organization.

5. Any funds collected by any professional fund raiser, fund raising
counsel, professional solicitor, commercial co-venturer, charitable
organization or any other person in violation of this section shall be
deemed to be held in trust for the benefit of the charitable
organization without deduction for costs or expenses of any nature. A
charitable organization shall be entitled to recover all funds collected
in violation of this section together with costs, disbursements and
allowances.

6. The failure of a professional fund raiser, fund raising counsel or
commercial co-venturer to immediately discontinue solicitation or any
other fund raising activity upon receipt of a notice of cancellation in
accordance with the provisions of this article within fifteen days of
the cancellation of the contract shall be deemed to be a continuing
fraud upon the people of the state of New York.

7. In addition to all other remedies provided by law the attorney
general may bring an action to enjoin the violation of the provisions of
this section and to recover restitution, damages, costs and attorneys
fees.