At a Glance

Montana is one of the few states that does not require charitable organizations to register before soliciting donations from residents within the state. However, as soon as your fundraising activities extend beyond Montana’s borders—through online campaigns, social media, or other multi-state efforts—you’ll need to comply with registration requirements in those jurisdictions.

Understanding Charitable Solicitation Laws in the U.S.

Charitable fundraising in the United States operates within a complex patchwork of state-level regulations. Before launching your nonprofit’s fundraising efforts, understanding these laws becomes essential for maintaining compliance and building donor trust.

What is charitable solicitation?

Charitable solicitation refers to any request for money, property, financial assistance, or other items of value where the representation is made that the contribution will support a charitable purpose or organization. This definition encompasses a broad range of activities beyond simply asking for donations.

In practice, charitable solicitation takes many forms:

• In-person meetings and fundraising events
• Direct mail campaigns
• Email communications and newsletters
• Digital advertising on platforms like Google or Facebook
• Website content with donation forms
• Social media fundraising
• Telephone solicitation

Notably, even if no donation is received, the act of soliciting itself generally triggers regulatory requirements. Furthermore, online donation capabilities through interactive websites may constitute solicitation in some states, such as Florida.

Why states regulate nonprofit fundraising

States establish charitable solicitation laws primarily to protect their residents from fraudulent fundraising practices and ensure donated funds are used for their intended charitable purposes. These regulations create a fiduciary relationship between donors and the organizations soliciting their support.

Most state laws require:

• Registration with state agencies before soliciting residents for contributions
• Periodic financial reporting
• Specific disclosures during solicitation activities
• Additional requirements for professional fundraisers or consultants

Currently, about 40 states and the District of Columbia mandate charitable registration before soliciting donations. The penalties for non-compliance can be severe, including:

• Monetary fines and late fees
• Civil or criminal action against officers and directors
• Revocation of tax-exempt status
• Prohibition from fundraising activities
• Damage to donor relationships and organizational reputation

How Montana fits into the national picture

Montana stands out in the national landscape as one of the few states without charitable solicitation registration requirements. It belongs to a small group of states—including Wyoming, Nebraska, and Delaware—that consistently rank as having the most friendly regulatory environments toward charitable organizations.

In contrast to states like Connecticut, Mississippi, New Jersey, Florida, and Pennsylvania, which impose the most burdensome regulatory frameworks, Montana allows nonprofits to focus on their mission rather than complex registration processes.

However, this doesn’t mean Montana-based organizations can ignore charitable registration requirements entirely. As soon as your fundraising crosses state lines, you’ll need to comply with the regulations in those jurisdictions. Given that most fundraising now happens online and can reach donors nationwide, many Montana nonprofits still need to navigate multi-state compliance.

For organizations soliciting nationwide that aren’t in exempt categories, registration is typically required in most jurisdictions that regulate charitable solicitation (about 40 states plus the District of Columbia). This complex landscape makes working with experienced nonprofit compliance specialists increasingly valuable for nonprofits seeking to maintain compliance across multiple jurisdictions while focusing on their mission.

Even within states requiring registration, exemptions often exist for educational institutions, religious organizations, and membership groups that only solicit from their members. Understanding these nuances becomes particularly important for Montana nonprofits expanding their fundraising reach.

Montana’s Charitable Solicitation Requirements

Montana stands apart from the majority of states when it comes to regulating nonprofit fundraising activities. Unlike the complex registration processes required elsewhere, Montana offers a more streamlined approach to charitable organizations operating within its borders.

No registration required for in-state fundraising

One of Montana’s most distinctive features is that nonprofits conducting fundraising activities exclusively within the state are not required to register before soliciting donations. This makes Montana one of only a handful of states—alongside Wyoming, Idaho, and South Dakota—that do not mandate charitable solicitation registration.

This absence of registration requirements offers several advantages for Montana-based nonprofits:

• Reduced administrative burden and paperwork
• Lower compliance costs
• Faster launch of fundraising campaigns
• Simplified operations for small nonprofits

Nevertheless, despite this relaxed regulatory environment, your organization must maintain proper corporate records and fulfill all IRS requirements for tax-exempt entities. Additionally, once your fundraising extends beyond Montana’s borders, you’ll need to comply with the regulations of those states.

What qualifies as solicitation in Montana

Although Montana doesn’t require registration for in-state fundraising, understanding what constitutes solicitation remains important—especially since these definitions become relevant when your nonprofit expands its reach.

In Montana, charitable solicitation typically encompasses:

1. Direct requests for financial contributions
2. Sale of merchandise where proceeds benefit charitable purposes
3. Fundraising events, including auctions and benefit dinners
4. Online donation requests that reach Montana residents

For Montana-based organizations raising funds through modern fundraising methods like crowdfunding platforms, social media campaigns, or nationwide email solicitations, consulting with experienced nonprofit compliance specialists can help clarify compliance obligations as your reach extends beyond state lines.

Exceptions for out-of-state nonprofits

Out-of-state charitable organizations soliciting in Montana also benefit from the state’s minimal regulatory approach. Unlike states such as California or New York that impose strict registration and reporting requirements on any organization soliciting their residents, Montana does not require out-of-state nonprofits to register before fundraising within its borders.

Yet, this exemption comes with important considerations:

• Your organization must still comply with Montana’s consumer protection laws
• Misrepresentation of charitable purposes remains prohibited
• Proper maintenance of nonprofit status with the IRS is mandatory
• You must comply with Montana’s business registration requirements if formally operating in the state

Moreover, if your fundraising activities extend beyond Montana, you’ll likely face registration requirements in other states. Working with specialized compliance experts who understand the complex landscape of multi-state charitable solicitation can help ensure your organization maintains good standing across all jurisdictions while keeping your team focused on mission-critical work.

For nonprofits conducting nationwide fundraising campaigns, remember that Montana’s relaxed approach is the exception rather than the rule. Most other states maintain strict oversight of charitable solicitations through their attorneys general or other regulatory agencies. Therefore, developing a comprehensive compliance strategy becomes essential for any organization that fundraises beyond Montana’s boundaries.

When You Still Need to Register Outside Montana

Though Montana provides a registration-free environment for charitable organizations, many nonprofits eventually face registration requirements elsewhere. Understanding these obligations helps protect your organization from potential penalties and reputation damage.

Fundraising across state lines

The moment your fundraising extends beyond Montana’s borders, you enter a different regulatory landscape. Among the 50 states, about 40 require charitable nonprofits to register before soliciting donations from their residents. This requirement applies regardless of whether you actually receive contributions—it’s the act of solicitation itself that triggers registration obligations.

Online fundraising complicates this picture further. Something as simple as adding a “Donate Now” button to your website could constitute nationwide solicitation, potentially requiring registration in numerous states. According to experts, even email fundraising, social media campaigns, and crowdfunding efforts may trigger registration requirements in multiple jurisdictions, as these platforms reach donors across state lines.

Using professional solicitors or fundraising platforms

Working with third-party fundraising professionals introduces additional compliance requirements. Many states mandate separate registrations for:

• Professional fundraisers who solicit on your behalf
• Fundraising consultants who advise your campaigns
• Commercial co-venturers (businesses that promote donations with purchases)
• Individual solicitors operating independently

Requirements and definitions vary by jurisdiction, and many states require professional solicitors and fundraising counsel to register and file reports with state regulators.

How to register in other states

Managing multi-state charitable registrations typically involves several steps:

1. Determining where your organization needs to register based on fundraising activities
2. Gathering required documentation (IRS determination letter, financial statements, etc.)
3. Completing state-specific forms or the Unified Registration Statement where accepted
4. Paying registration fees, which vary by state
5. Maintaining compliance through annual renewals and reports

For Montana nonprofits expanding their reach, this process can consume approximately 200 hours of work annually. Filing deadlines and renewal requirements vary across jurisdictions, consequently creating a complex compliance calendar that demands ongoing attention.

Why working with compliance specialists can help

Given these complexities, many organizations turn to experienced nonprofit compliance specialists who provide comprehensive support throughout the registration process. These services offer several advantages:

• In-depth knowledge of state-specific laws and regulatory updates, ensuring your organization remains compliant across multiple jurisdictions through dedicated expertise
• Streamlined registration process by managing submissions efficiently, saving considerable time and reducing error risks
• Proactive renewal management, annual filings, and registration updates

Professional compliance specialists also provide valuable expertise in navigating these complex regulatory landscapes while offering peace of mind that comes from knowing your registrations are handled correctly and on time, enabling your team to dedicate their energy to advancing your charitable purpose.

Other Montana Compliance Obligations for Nonprofits

Beyond charitable solicitation considerations, Montana nonprofits must fulfill several ongoing compliance requirements to maintain their legal status and tax exemptions. Understanding these obligations helps your organization avoid penalties while focusing on your mission.

Annual corporate report filing

Every nonprofit corporation in Montana must submit an annual report to the Montana Secretary of State (406-444-3665, sosmt.gov) by April 15 each year. This filing keeps your registration active and allows you to update important organizational information. Reports can be submitted as early as January 1 through the state’s online portal at biz.sosmt.gov.

Currently, the Montana Secretary of State has waived filing fees for all 2024 and 2025 reports. However, if you miss the April 15 deadline, a $15 late fee applies.

The annual report isn’t a financial document but rather confirms or updates your:

• Business mailing address
• Registered agent information
• Names and addresses of directors/officers
• Principal office location

Failure to file can result in administrative dissolution by the state.

IRS Form 990 requirements

Simultaneously with state obligations, your nonprofit must file the appropriate version of IRS Form 990 annually. This federal filing is due by the 15th day of the 5th month after your fiscal year ends. Accordingly, organizations following a calendar year must file by May 15. The IRS offers four versions of Form 990 based on your organization’s gross receipts and total assets:

• Form 990-N (e-Postcard) for smaller organizations
• Form 990-EZ for mid-sized organizations
• Form 990 (full version) for larger organizations
• Form 990-PF for private foundations

Failing to file Form 990 for three consecutive years results in automatic revocation of your tax-exempt status. Organizations needing additional time can request a six-month extension by submitting Form 8868, except for those filing Form 990-N. Working with experienced compliance specialists can help ensure accurate and timely submissions while freeing your team to focus on mission-critical activities.

State tax exemption rules

Montana generally follows federal tax exemption concepts for nonprofit corporations. Many federally tax-exempt organizations are also exempt from Montana corporate income tax under state law. In addition, Montana has no general state sales tax, eliminating the need for a state sales tax exemption certificate.

Nonetheless, nonprofits should remain aware of property tax exemption requirements, which may necessitate separate filings. Professional compliance specialists can guide your organization through these state-specific exemptions alongside any multi-state compliance obligations, providing comprehensive support that ensures nothing falls through the cracks.

Maintaining proper compliance across all these requirements ensures your nonprofit can focus on its mission rather than regulatory issues. For organizations operating across multiple states, comprehensive charitable solicitation registration services provide valuable expertise in navigating these complex regulatory landscapes while offering the peace of mind that comes from working with dedicated professionals.

Avoiding Common Pitfalls in Charitable Registration

Navigating the complexities of nonprofit compliance often leads to misunderstandings that can create serious legal problems. Understanding these potential pitfalls helps organizations maintain proper compliance.

Confusing business registration with solicitation registration

One frequent mistake nonprofits make is confusing business registration with charitable solicitation registration. These are entirely separate requirements with different purposes:

• Business registration (foreign qualification) establishes your legal right to operate in a state
• Charitable solicitation registration grants permission to fundraise from residents

In some jurisdictions, foreign qualification may be required before a charity can obtain a charitable solicitation registration, while in others these processes are entirely separate. Requirements vary by state.

Overlooking exemptions and exceptions

Many organizations unnecessarily register due to overlooking available exemptions. Typical exemptions include:

• Religious organizations
• Educational institutions
• Organizations soliciting only from members
• Small nonprofits under certain financial thresholds

Unfortunately, these exemptions vary significantly between states, creating confusion about when registration is truly required.

Why using the Unified Registration Statement (URS) may not work in all states

Initially created to simplify multi-state registration, the Unified Registration Statement has become less practical as many states have moved to state-specific online application portals. Acceptance of the URS varies by state, and some jurisdictions do not accept it at all.

How professional compliance services simplify multi-state compliance

Given these complexities, many nonprofits partner with specialized compliance services to manage their registration obligations efficiently. Professional services offer several key advantages:

• Comprehensive knowledge of state-specific requirements and ongoing regulatory changes
• Dedicated management of registrations across multiple jurisdictions
• Proactive handling of renewals and deadline tracking to prevent lapses
• Protection from penalties and reputation damage through accurate, timely filings

Experienced nonprofit compliance specialists combine deep regulatory expertise with personalized service, helping organizations of every size register, renew, and maintain compliance in all necessary jurisdictions. With professional support, your organization can fundraise confidently knowing compliance is handled correctly while your team focuses on advancing your mission rather than navigating administrative complexities.

Conclusion

Montana offers a uniquely favorable environment for nonprofits with its lack of charitable solicitation registration requirements for in-state fundraising. However, this exemption represents just one aspect of a complex national regulatory landscape. As your organization grows beyond state lines, you must navigate varying registration requirements across multiple jurisdictions.

Understanding when and where to register becomes essential for maintaining compliance and protecting your nonprofit’s reputation. Though Montana-based organizations enjoy freedom from local registration, fundraising activities that reach donors in other states typically trigger registration requirements in those jurisdictions. This reality affects virtually all nonprofits using online donation platforms, email campaigns, or social media fundraising.

Additionally, complying with annual corporate filings, IRS Form 990 requirements, and other state-specific obligations remains crucial regardless of charitable registration status. Failing to meet these requirements could result in penalties, loss of tax-exempt status, or prohibited fundraising activities.

Professional compliance services therefore provide significant value for organizations navigating these regulatory challenges. Rather than dedicating hundreds of staff hours to tracking deadlines and completing paperwork across multiple states, experienced nonprofit compliance specialists can manage these processes efficiently while ensuring your organization remains compliant through dedicated expertise and proactive support.

Remember, while Montana’s approach simplifies local operations, comprehensive multi-state compliance demands attention to detail and ongoing monitoring. The relaxed regulatory environment in Montana should never lead to complacency about broader compliance obligations. Your nonprofit can focus on its mission and maximize its impact by establishing proper registration practices from the start, especially when fundraising extends beyond Montana’s borders. Working with trusted compliance partners ensures your organization maintains good standing across all jurisdictions while your team dedicates their energy to advancing your charitable purpose.

Frequently Asked Questions