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Fundraising Commission Agreement Template for Pakistan

A Fundraising Commission Agreement governed by Pakistani law is a legal contract that establishes the terms and conditions under which a fundraiser or fundraising organization will provide fundraising services in exchange for commission-based compensation. This agreement addresses key aspects including commission structures, payment terms, regulatory compliance requirements under Pakistani securities and financial laws, fundraising methodologies, and reporting obligations. It incorporates specific provisions to ensure compliance with Pakistani financial regulations, including the Securities Act 2015 and relevant SECP regulations, while establishing clear performance metrics and protection mechanisms for both parties.

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What is a Fundraising Commission Agreement?

The Fundraising Commission Agreement is essential for organizations seeking to engage professional fundraisers or fundraising firms in Pakistan. This document is typically used when a company, institution, or non-profit organization wants to formalize a commission-based arrangement with fundraising professionals. The agreement outlines the scope of fundraising activities, commission structures, compliance requirements under Pakistani law, and protection mechanisms for all parties involved. It's particularly important given Pakistan's regulatory framework, including the Securities Act 2015, Companies Act 2017, and various SECP regulations governing financial activities. The document includes specific provisions for target setting, commission calculations, payment terms, and reporting requirements, while ensuring compliance with local financial and securities regulations.

What sections should be included in a Fundraising Commission Agreement?

1. Parties: Identification of the principal and the fundraising agent/consultant

2. Background: Context of the agreement and brief description of the fundraising arrangement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of appointment and detailed scope of fundraising services

5. Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods

6. Payment Terms: Timeline and process for commission payments, including invoicing requirements

7. Obligations of the Agent: Specific duties, responsibilities, and performance standards of the fundraiser

8. Obligations of the Principal: Support, information, and resources to be provided by the principal

9. Compliance Requirements: Regulatory compliance obligations and required approvals

10. Representations and Warranties: Standard warranties regarding capacity, authority, and compliance

11. Confidentiality: Protection of confidential information and trade secrets

12. Term and Termination: Duration of agreement and termination provisions

13. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a Fundraising Commission Agreement?

1. Non-Competition: Restrictions on fundraiser's ability to work with competitors, used when dealing with sensitive markets or exclusive arrangements

2. Performance Targets: Specific fundraising targets and consequences of meeting/missing them, used when performance-based incentives are important

3. Marketing and Branding: Guidelines for use of principal's brand and marketing materials, relevant when fundraiser will be representing the principal publicly

4. Training and Support: Details of training provided to fundraiser, included when complex products or services are involved

5. Insurance Requirements: Specific insurance coverage requirements, important for high-value fundraising activities

6. Post-Termination Obligations: Ongoing obligations after agreement ends, relevant for long-term fundraising relationships

7. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in uncertain market conditions

What schedules should be included in a Fundraising Commission Agreement?

1. Commission Rate Card: Detailed breakdown of commission rates for different types of funds raised

2. Approved Fundraising Methods: List of permitted fundraising approaches and methodologies

3. Compliance Checklist: Detailed regulatory compliance requirements and procedures

4. Reporting Templates: Standard formats for activity reports and commission calculations

5. Territory Schedule: Definition of geographical areas covered by the agreement

6. Target Investor Profiles: Description of approved investor categories and qualification criteria

7. Required Documentation: List of documents required for fundraising activities and commission claims

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Pakistan

Publisher

Genie AI

Sector

Sales

Cost

Free to use

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