Everyone has said it but I'll reiterate, she had no authority to sign a contract. Unless this salesman is brand new to working with parent groups, he knew this. I wouldn't feel obligated to utilize his services and you can certainly apologize to him for the waste of his time but the bottom line is what is best for your group. If his fundraiser isn't what's best, than don't use them especially out of obligation. Your only true obligation is to the membership and you are fiscally responsible to them. I wouldn't pay him a dime. I know it sounds harsh but again, he should have known better anyway.
I would take this opportunity to review with your board, chairs etc, how contracts are handled though...

mom2m&a--are you sure this woman and my PIA fundraising chair aren't the same person? THANK GOD mine didn't actually sign the contract. After hounding her for months I finally got the contract the other day, and it needed two signatures anyhow. I know she would have had the event chair co-sign, but as she has no authority to I would have been up front and said she had no authority, and sorry but you should have asked to talk to the pres or VP.
It's amazing how one person can cause so much angst and aggravation!

I don't see why your PTO has to pay for the cost of the brochures. That is something the fundraising company eats as a cost. If you had received merchandise out of the brochure that would be a different story. Also, around here brochure fundraiser groups mandate the PTO President's signature on the contract. I would stick with she wasn't authorized to sign the contract. Do you even have a copy of the contract she signed? Has anyone talked to this lady?

I've found brochure fundraising companies will say, do, and act anyway they can to seal the deal with a school. So take that into consideration with the fact that he is "upset" cause chances are he isn't as upset as he might be putting on.

If the person was not authorized to sign a contract for you then I would stick by that.

If I felt that we could in the future (even next year) use this guy for a fundraiser, then I would certainly do that, but I would not feel obligated to pay him for something your board never authorized. He needs to take that up with the person who signed the contract. Just my opinion!

I got a call out of the blue this week from a salesman for one of the school fundraising companies. Last year we considered doing a flower bulb fundraiser and one of our board members contacted this company. We eventually decided not to do it, but we didn't know that this person actually signed a contract with the company and accepted over $700 in brochures for the fundraiser. She has been leading the salesman on telling him we would use him in the fall (we didn't) or in the spring but she never came to any meetings this year and never let us know we had an agreement with this company.

The salesman is very upset that he has not made any profit off our group and is especially upset that we are in the middle of a cookie dough fundraiser since his company could have done this fundraiser for us (we didn't know or we would have gone with him).

Needless to say, I do feel bad, but this person was never authorized to sign a contract. I have agreed to look at his materials and try and set up a fundraiser with him but we don't really want to run a fundraiser just because we "owe" him. Our treasurer has proposed just paying him for the cost of the brochures to get him off our back. Any ideas or suggestions?