N.Y. Executive Law § 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.