§ 174-a. Contracts with charitable organizations. 1. Whenever a\ncharitable organization contracts with a professional fund raiser or\nfund raising counsel or commercial co-venturer, the charitable\norganization shall have the right to cancel the contract without cost,\npenalty, or liability for a period of fifteen days following the date on\nwhich said contract is filed with the attorney general pursuant to the\nprovisions of this article, regardless of the date of execution of said\ncontract. Any provision in the contract that is intended to waive this\nright of cancellation shall be void and unenforceable.\n 2. A charitable organization may cancel a contract signed pursuant to\nsubdivision one of this section by a written notice of cancellation. If\ngiven by mail, cancellation shall be deemed effective when deposited in\na mailbox, properly addressed and postage prepaid. The notice shall be\nsufficient if it states that the charitable organization does not intend\nto be bound by the contract.\n 3. Whenever a charitable organization cancels a contract pursuant to\nthe provisions of this section, it shall mail a duplicate copy of the\nnotice of cancellation to the attorney general, at the address\ndesignated for that purpose.\n 4. Every contract entered into pursuant to subdivision one of this\nsection shall contain, in a conspicuous typeface:\n (a) a concise, accurate statement of the charitable organization's\nright to cancel;\n (b) a concise, accurate statement of the period during which the\ncontract may be cancelled;\n (c) the address to which the notice of cancellation is to be sent;\n (d) the address of the attorney general to which a duplicate of the\nnotice of cancellation is to be sent; and\n (e) a clear statement of the financial arrangement including, if\napplicable, a statement of the percentage of the total funds collected\non behalf of the charitable organization which shall be paid to the\nprofessional fund raiser or any other person for purposes other than the\nexclusive benefit of the charitable organization.\n 5. Any funds collected by any professional fund raiser, fund raising\ncounsel, professional solicitor, commercial co-venturer, charitable\norganization or any other person in violation of this section shall be\ndeemed to be held in trust for the benefit of the charitable\norganization without deduction for costs or expenses of any nature. A\ncharitable organization shall be entitled to recover all funds collected\nin violation of this section together with costs, disbursements and\nallowances.\n 6. The failure of a professional fund raiser, fund raising counsel or\ncommercial co-venturer to immediately discontinue solicitation or any\nother fund raising activity upon receipt of a notice of cancellation in\naccordance with the provisions of this article within fifteen days of\nthe cancellation of the contract shall be deemed to be a continuing\nfraud upon the people of the state of New York.\n 7. In addition to all other remedies provided by law the attorney\ngeneral may bring an action to enjoin the violation of the provisions of\nthis section and to recover restitution, damages, costs and attorneys\nfees.\n
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