2023 New York Laws › EXC - Executive › Article 7-A - Solicitation and Collection of Funds for Charitable Purposes › 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.