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South Dakota bonds

South Dakota — Paid Solicitor (Collection Of Contributions) Bond

Will your fundraising business collect contributions or have physical access to them? South Dakota's SDCL 37-30-5 sets a $20,000 bond for that role, rather than the $10,000 solicitation-only bond. Explain how funds will reach the charity and obtain Attorney General approval before starting the campaign.

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Recorded state
South Dakota
Bond type
Charitable Solicitation / Fundraiser Bond
Category
Business operations & taxes

What this bond does

Provide the collection/access level of paid solicitor registration security approved by the South Dakota Attorney General under SDCL 37-30-5.

Who needs it
Paid solicitors collecting solicited contributions or otherwise having physical access to them. Match the actual applicant and handling arrangements, not just whether the fundraiser describes itself as a telephone solicitor.
Who it protects
The statute runs the bond to South Dakota and persons with causes of action for liabilities from the principal's covered solicitation activities or violations of Chapter 37-30 or its rules. The posted $20,000 model also describes reimbursement for covered liabilities of the principal or its agents. It is not the fundraiser's insurance against an unsuccessful campaign.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Details for contribution access and campaign approval

The statutory difference is physical access to contributions, not simply whether an employee makes collection calls. The $10,000 level applies only when the applicant solicits without collecting or otherwise accessing contributions. Use the actual contract, receipt method and bank arrangements to identify the correct undertaking.

SDCL 37-30-14 requires collected funds to be deposited into an account in the charity's name, with the charity having sole or joint control. That control does not by itself mean the fundraiser lacks physical access. Describe who can receive or handle contributions and submit the facts to the Attorney General.

The current registration statute requires filing at least 30 days before solicitation. The Attorney General must review and approve the application before solicitation begins; the law gives a 45-day review period. Buying security or reaching the proposed start date is not approval.

Maintain the bond while registration remains in effect. Additional campaigns registered during that same period do not require an additional bond under Section 37-30-5, but they still require their own campaign information and approval. Initial registration is for one year, with the statutory renewal process for a campaign lasting longer.

The posted packet includes a $20,000 model with actual start/end dates, principal and surety execution, acknowledgments and attorney-in-fact authority. Its model gives 30 days' prior written notification to Consumer Protection for rescission. Confirm the accepted execution instructions with Consumer Protection, including signer authority and acknowledgments, before filing.

Sources

Have these ready

  1. Describe collection, physical access, receipt delivery and charity-account control.
  2. Match the paid solicitor's legal identity and accepted $20,000 undertaking.
  3. Gather the campaign notice, charity contract, scripts and required charity consents.
  4. Confirm dates, signer authority, acknowledgments and Power of Attorney with Consumer Protection.
  5. File at least 30 days before solicitation and obtain approval before beginning.

Questions about this bond

Is the lower solicitation-only sum appropriate if the charity controls the bank account?

Not automatically. The law tests whether the applicant collects contributions or otherwise has physical access. Charity control of the account is a separate requirement; describe the actual handling and access arrangements to the Attorney General.

Does each additional campaign require another bond?

Section 37-30-5 says additional campaigns registered during the solicitor's registration period do not require an additional bond. Campaign registration, supporting information and approval are still separate obligations, and security must remain in effect throughout registration.

What follows Purchase Now?

Propeller's South Dakota contribution-collection application opens in a new tab. Match the actual applicant, access role, accepted $20,000 condition, period and execution, then complete Consumer Protection filing. Payment alone does not approve the campaign or authorize solicitation.

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