At a Glance

Maryland does not have separate commercial co-venturer registration, but for-profit businesses involved in charitable promotions must register as either professional solicitors or fund-raising counsel depending on their role. Professional solicitors who directly solicit or receive contributions must register annually with the Secretary of State, maintain a surety bond, and file campaign notices before soliciting. Fund-raising counsel who only advise or manage campaigns must register and submit agreement copies within 10 days.

Are you planning to launch a commercial co-venture that ties product sales to charitable donations in Maryland? Commercial co-ventures offer an exciting way to boost your brand while supporting important causes, but they come with legal considerations you need to navigate. In Maryland, charitable fundraising is regulated under the Maryland Solicitations Act (Business Regulation Article, Title 6) through the Office of the Secretary of State. While Maryland does not have a separate, stand-alone registration for “commercial co-venturers,” a for-profit’s obligations depend on whether its role meets the statutory definitions of a professional solicitor or fund-raising counsel. If so, registration and related filings with the Secretary of State apply before the campaign begins. Failing to meet statutory filing obligations can result in enforcement by the Secretary of State.

This guide will walk you through what may apply to commercial co-venture campaigns in Maryland—focusing on when professional solicitor or fund-raising counsel rules are triggered, what must be filed, and the timing of those filings. Managing CCV compliance can be complex, but experienced guidance helps streamline the process through accurate preparation of required filings and clear understanding of state-specific requirements.

Who Qualifies as a Commercial Co-Venturer in Maryland

Understanding when a commercial promotion tied to a charity triggers Maryland requirements requires looking at Maryland’s statutory definitions. Maryland law does not define “commercial co-venturer” in the Charitable Solicitations Act. Instead, Maryland regulates certain for-profit participants as:

• Professional solicitor: a person who, for pay, advises about, holds, plans, or manages a charitable solicitation, or solicits or receives charitable contributions for a charitable organization (Md. Code, Bus. Reg. § 6-101(i)).
• Fund-raising counsel: a person who, for pay, advises about or plans/manages a charitable solicitation in Maryland but does not directly solicit or receive charitable contributions from the public (Md. Code, Bus. Reg. § 6-101(h)).

If a for-profit business engaged in a charitable sales promotion solicits or receives contributions, it is likely acting as a professional solicitor and must comply with professional solicitor registration, bonding, and reporting. If the business only provides planning/management and does not directly solicit or receive contributions, the fund-raising counsel rules may apply instead.

How do professional solicitors, fund-raising counsel, and standard corporate donors differ?

• Standard corporate donors make gifts without soliciting the public or tying donations to purchases; the professional solicitor/fund-raising counsel rules do not apply.
• Professional solicitors directly solicit or receive contributions and must register and comply with notice, agreement, bonding, and accounting requirements.
• Fund-raising counsel advise or manage solicitations but do not solicit or receive contributions; they must register and submit copies of agreements within statutory timeframes.

Examples of activities that can trigger Maryland filing obligations

• A retailer runs a promotion and directly solicits consumers that “$1 per product sold will be given to Charity X.” If the retailer solicits or receives contributions, professional solicitor registration likely applies.
• A marketing firm plans the campaign for a charity, but the firm does not directly solicit or receive contributions; fund-raising counsel registration and agreement-submission rules may apply.

Consequently, understanding whether your promotion involves solicitation or receipt of contributions is the first critical step toward compliance. If it does, follow Maryland’s professional solicitor or fund-raising counsel requirements outlined below.

Initial Registration Requirements Potentially Applicable to CCVs

Once you determine which role applies, complete the appropriate registration before starting any solicitation connected to your promotion.

Maryland Secretary of State Registration Overview

The Office of the Secretary of State (410-974-5521, sos.maryland.gov) regulates professional solicitors and fund-raising counsel under the Maryland Solicitations Act.

• Professional solicitors: A person may not act as a professional solicitor unless they have applied to register with the Secretary of State (Md. Code, Bus. Reg. § 6-601; see Secretary of State Professional Solicitor guidance). Registration is filed annually and must be in effect before soliciting or receiving contributions. The annual filing fee is $350. A surety bond or irrevocable letter of credit running to the State is required and must remain in force while registered.
• Fund-raising counsel: Must register annually before providing services. The annual filing fee is $250. Fund-raising counsel do not solicit or receive contributions but have agreement-submission obligations (see below).

Key Secretary of State resources and forms:

• Professional Solicitor or Fund-Raising Counsel registration: RegisterSolicitorComboForm (see Secretary of State Professional Solicitor/Fund-Raising Counsel page)
• Surety bond or irrevocable letter of credit for professional solicitors

Note: COR-92 and related charity registration forms are used by charitable organizations registering to solicit in Maryland and are not the professional solicitor or fund-raising counsel registration forms.

Bonding Requirements (Professional Solicitors)

Professional solicitors must file a surety bond or an irrevocable letter of credit payable to the State of Maryland and maintain it for as long as the registration is in effect (see Md. Code, Bus. Reg. § 6-303; Secretary of State Professional Solicitor guidance). There is no general bonding requirement for fund-raising counsel.

What are the registration deadlines?

• Professional solicitors must apply to register before acting as a professional solicitor (Md. Code, Bus. Reg. § 6-601) and must keep registration current before soliciting or receiving contributions.
• Fund-raising counsel must register before providing their services.

Mandatory Contract Filing and Content Guidelines

Beyond registration, Maryland law requires specific campaign filings and dictates the content of agreements depending on your role.

Fund-Raising Notices and Agreements (Professional Solicitors)

• Prior to starting a solicitation, a professional solicitor must submit a fund-raising notice for each campaign and include a copy of the fund-raising agreement with the charitable organization (see Md. Code, Bus. Reg. § 6-502; § 6-616; Secretary of State Professional Solicitor guidance).
• Agreements between a professional solicitor and a charity must include the names and addresses of the parties, the minimum percentage of gross receipts from the solicitations that will be used by the charity exclusively to advance its charitable purpose, and the text used in each solicitation (Md. Code, Bus. Reg. § 6-616; Secretary of State guidance).
• In addition, copies of any subcontracts or other contracts in furtherance of the agreement (e.g., caging agreements) must also be submitted with the fund-raising notice (Secretary of State guidance).

Agreement Submission and Compensation Terms (Fund-Raising Counsel)

• A fund-raising counsel must submit a copy of each fund-raising agreement by the tenth day after the agreement is made or the start of the charitable solicitation, whichever is earlier (Md. Code, Bus. Reg. § 6-615; Secretary of State guidance).
• Agreements between a fund-raising counsel and a charity must include: the names and addresses of the parties, the services to be provided, the number of persons involved in providing the services, the time when the services are to be provided, and the method and formula for compensation. Percentage-based compensation is prohibited (Md. Code, Bus. Reg. § 6-615; Secretary of State guidance).

Filing Methods

Submit the required registrations, notices, bonds/letters of credit, and agreements as provided by the Maryland Secretary of State’s current instructions. Some filings are available by mail; confirm current submission options on the Secretary of State website.

Post-Promotion Reporting and Financial Disclosures

Accounting Reports (Professional Solicitors)

• A final accounting report is required within three months after the end of the fund-raising campaign and must account for all funds received and disbursed during the entire campaign. Both the professional solicitor and an authorized representative of the charity must sign and certify the report (Secretary of State Professional Solicitor guidance).
• Interim accounting reports are required with an application to register as a professional solicitor for each ongoing campaign. The interim report covers all funds received and disbursed from the beginning of the campaign through a date within three months before the solicitor’s current registration expires (Secretary of State guidance).

Maintain records sufficient to support the notices, agreements, and accounting reports filed with the Secretary of State.

What happens if you don’t comply?

Acting without required registration, failing to submit required notices or agreements, or failing to file accounting reports can violate Title 6 of the Business Regulation Article and may result in enforcement by the Maryland Secretary of State.

Annual Renewal and Ongoing Compliance Obligations

• Professional solicitors and fund-raising counsel must submit registration annually. As of the current guidance, the annual fee is $350 for professional solicitors and $250 for fund-raising counsel. Ensure registration remains in effect before soliciting (professional solicitors) or providing services (fund-raising counsel).
• For each new campaign (professional solicitors), submit a fund-raising notice with the required copy of the fund-raising agreement before solicitation begins. Fund-raising counsel must continue to submit copies of agreements within the statutory 10-day timeline described above.

Maintaining Good Standing with the Secretary of State

Businesses operating in Maryland should also monitor general business compliance (e.g., the entity’s good standing status) to avoid administrative issues that could affect operations.

Conclusion

Navigating Maryland’s requirements for charitable promotions turns on your role under the Maryland Solicitations Act. While Maryland does not have a separate “commercial co-venturer” registration, a for-profit that solicits or receives contributions generally must register and comply as a professional solicitor, including submitting a fund-raising notice and agreement before each campaign, maintaining a surety bond or irrevocable letter of credit, and filing interim and final accounting reports. If you only advise or manage solicitations without directly soliciting or receiving contributions, registration and agreement-submission rules for fund-raising counsel apply.

As you prepare your next charitable promotion, confirm whether your activities meet the definition of a professional solicitor or fund-raising counsel and make the required filings with the Maryland Secretary of State before launching your campaign. We can help streamline CCV compliance through expert preparation of required filings, ensuring disclosures meet state standards, and providing accurate, timely assistance with multi-state requirements when campaigns expand beyond Maryland. Additionally, nonprofits should be aware that CCV activity may affect their charitable solicitation registration obligations in Maryland and other states where they operate.

Frequently Asked Questions