174-A - Contracts with charitable organizations.

§ 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.