§ 9710. Fundraising events; charitable organizations

(a) No charitable organization shall enter into a contract with any person for the promotion of any event the proceeds of which will be shared by the charitable organization and the person promoting the event without first having obtained a letter from the Commissioner stating that the person is in good standing with the Department.

(b) A person is in “good standing” if the person is registered to collect or pay any tax imposed under this title and:

(1) has no taxes due and payable; or

(2) has a pending appeal with respect to any taxes due and payable; or

(3) is in compliance with a payment plan approved by the Commissioner.

(c) The Commissioner may require that the person file a bond in order to be in good standing. The provisions of section 3114 of this title shall apply to any bond required under this section.

(d) All amounts paid to the person promoting the event as compensation or reimbursement of expenses or commissions in connection with the promotion are subject to tax under subdivision 9771(4) of this title, unless specifically exempted.

(e) If a charitable organization enters into a contract in willful violation of subsection (a) of this section, the charitable organization shall be jointly liable for any taxes due and payable on the proceeds from the event.