Editor's Note: See also the ePhilanthropy Code of Ethics for additional tips: http://ephilanthropy.org/ethics

You can’t use the Internet for fundraising unless you have some type of enabling service. Here are some guidelines addressing issues raised in the context of third party Internet Service Providers (ISP).

• The charity should have a formal agreement with all ISPs that seek to represent the charity or that will accept donations on behalf of the charity.
• A formal agreement should make clear which party (the charity or the ISP) is required to register with appropriate regulators should the activity on behalf of the charity require registration.
• A formal agreement should specify who has legal control of the contributions. Is the ISP simply a conduit, passing on the money, or does it legally control the money and then passes it on to the charity?
• A formal agreement should specify on what schedule, and by which means, contributions will flow to the charity from the ISP. For example, will donations be sent upon receipt, weekly, quarterly?

A formal agreement should specify whether or not the charity will be able to monitor its account in real time, or if the ISP will supply a periodic report.

Copyright © 2003 The NonProfit Times.