At a Glance

Delaware stands out from most states by not requiring charitable solicitation registration with any state agency before fundraising. However, your organization must still comply with specific disclosure requirements during solicitations and may need local permits for gaming activities like raffles or bingo.

Understanding Charitable Solicitation in Delaware

Delaware stands apart from most states regarding charity regulations. Before diving into the specifics, let’s clarify what you need to know to stay compliant with Delaware’s distinctive approach to charitable solicitation.

What counts as charitable solicitation?

In Delaware, charitable solicitation encompasses any oral or written request for money, property, or other items of value that will supposedly benefit a charitable purpose or organization. Delaware law covers solicitations for benevolent, educational, humane, scientific, patriotic, social welfare, advocacy, public health, environmental, civic, or philanthropic objectives, and also includes organizations supporting law enforcement, firefighters, or other public safety purposes and entities subject to section 501(c) of the Internal Revenue Code (see 6 Del. C. § 2593). Notably, the law doesn’t require an actual contribution to take place for an interaction to qualify as solicitation. Simply asking for support counts, regardless of the outcome (6 Del. C. § 2593(3)). Delaware law defines charitable organizations broadly to include:

• Organizations established for benevolent or educational purposes
• Groups supporting law enforcement, firefighters, or public safety
• Any entity subject to Section 501(c) of the Internal Revenue Code (6 Del. C. § 2593(1))

Why Delaware is different from other states

Delaware does not require charities to register with the state before soliciting contributions. Instead of registration, Delaware focuses on disclosure requirements during the solicitation process (Delaware Division of Revenue, “Fundraisers and Charitable Solicitations”). This approach makes Delaware particularly attractive for nonprofits seeking to minimize administrative burdens. There is no state statute requiring registration of charitable solicitations or fundraisers with the Department of Justice or another state agency (Delaware Division of Revenue, “Fundraisers and Charitable Solicitations”). Rather than implementing registration requirements, Delaware relies on its fraud prevention laws and specific disclosure mandates to protect donors. For organizations used to dealing with charitable solicitation registration in multiple states, this represents a significant reduction in paperwork and administrative overhead. Nevertheless, there are still important compliance requirements to consider.

Do all nonprofits need to register?

Since Delaware has no state-level registration requirement, nonprofits do not register with the state specifically for fundraising activities (Delaware Division of Revenue, “Fundraisers and Charitable Solicitations”). This applies to both Delaware-based organizations and out-of-state entities soliciting in Delaware. Nonetheless, certain considerations remain important:

• Foreign (out-of-state) corporations conducting fundraising in Delaware must comply with other requirements, including appointing a registered agent and making annual filings (Delaware Division of Revenue, “Fundraisers and Charitable Solicitations”; 8 Del. C. § 371 et seq.).
• Some Delaware counties and municipalities may require charities that solicit in-person to register locally before fundraising (Harbor Compliance, Delaware Charitable Registration guide). You should check with each locality where you plan to solicit.
• Organizations exempt from federal income tax under Section 501(c) are exempt from Delaware Corporate Income Tax, and nonprofit corporations are exempt from obtaining a Delaware business license and from gross receipts tax on most goods and services (Delaware Division of Revenue, “Non-profit Corporations”). They must still register with the Division of Revenue for employment tax purposes and with the Delaware Department of Labor as applicable. In addition, private foundations with activities in Delaware must file a copy of Federal Form 990-PF with the Delaware Attorney General (Delaware Division of Revenue, “Non-profit Corporations”).
• Certain types of organizations frequently enjoy exemptions across states, including:
• Churches and religious organizations
• Educational institutions
• Hospitals (note: Delaware does not require state charitable registration, but other states may; check each jurisdiction where you solicit)

Even without registration requirements, your organization must adhere to Delaware’s mandatory disclosure rules during solicitation. These include identifying yourself and your organization and being prepared to answer donor questions about how funds will be allocated between administrative costs and charitable purposes (Delaware Division of Revenue, “Fundraisers and Charitable Solicitations”; 6 Del. C. § 2595(b)(1)-(4)). For nonprofits operating across state lines, managing various charitable solicitation registration can become complex. Although Delaware exempts you from state registration, remember that soliciting in other states might trigger their registration requirements. Partnering with experienced compliance specialists can provide the peace of mind that your organization stays current with all applicable filing obligations while you focus on advancing your mission.

Step-by-Step Process to Register in Delaware

Navigating Delaware’s unique approach to charitable solicitation requires following specific steps to ensure compliance. Even without a state-level registration system, your nonprofit must adhere to certain requirements.

Step 1: Determine if your nonprofit is exempt

First things first – Delaware has no state statute requiring registration of charitable solicitations or fundraisers with any state agency (Delaware Division of Revenue, “Fundraisers and Charitable Solicitations”). This means:

• Organizations with 501(c) tax-exempt status from the IRS are exempt from Delaware Corporate Income Tax (Delaware Division of Revenue, “Non-profit Corporations”).
• Nonprofits are exempt from obtaining a Delaware business license and paying gross receipts tax on most goods and services (Delaware Division of Revenue, “Non-profit Corporations”).
• Foreign (out-of-state) corporations doing fundraising in Delaware must still comply with appointing a registered agent and making annual filings (Delaware Division of Revenue, “Fundraisers and Charitable Solicitations”).

If you’re managing charitable registration across multiple states, Delaware’s approach significantly reduces your administrative burden compared to most other states.

Step 2: Check local (county/municipal) requirements

Despite no state-level registration, certain local regulations may apply:

• Some Delaware counties and municipalities require charities that solicit in-person to register prior to fundraising (Harbor Compliance, Delaware Charitable Registration guide).
• Contact each locality where you plan to solicit to confirm specific requirements.
• Consider utilizing professional charitable solicitation registration services to navigate these varying requirements across jurisdictions.

Step 3: Prepare required disclosures for solicitations

In lieu of registration, Delaware mandates specific disclosures during solicitation:

• You must identify yourself and your organization when soliciting donations (6 Del. C. § 2595(b)(1)-(3)).
• Donors are entitled to question how funds will be allocated between administrative costs and actual charitable use (6 Del. C. § 2595(b)(4)).
• Under 6 Del. C. § 2593(3), “charitable/fraternal solicitation” includes oral or written requests, so these obligations apply to solicitations made orally or in writing.

Failure to provide these disclosures may result in civil or criminal prosecution, as all state laws applicable to fraud and fraudulent transactions must be observed (Delaware Division of Revenue, “Fundraisers and Charitable Solicitations”).

Step 4: Apply for gaming permits if needed

If your fundraising involves gaming activities, additional permits are required:

• Apply online through Delaware’s DELPROS (Delaware Professional Regulation Online Services) system (Delaware DPR Board of Charitable Gaming, Charitable Gaming Event page).
• Submit your application at least 7–10 business days before the Board meeting (Delaware DPR Board of Charitable Gaming, Charitable Gaming Event page).
• Many permits (e.g., charitable gaming events and raffles) carry a fee of $15 per event date (Delaware DPR Board of Charitable Gaming, Raffle Event page; Harbor Compliance Delaware charitable registration overview).
• Include supporting documentation such as:
• For first-time applicants, IRS documentation dated within the past 12 months showing legal name, Delaware address, EIN, and 501(c) determination
• Organization’s formation documents
• Letter from the premises owner if not at your organization’s address (Delaware DPR Board of Charitable Gaming, Charitable Gaming Event page)

Remember that permits for bingo, raffles, Texas Hold’em tournaments, and other games of chance must be obtained before advertising or holding the event (Delaware DPR Board of Charitable Gaming, Charitable Gaming Event and Raffle Event pages).

Step 5: Maintain records and monitor compliance

Even with Delaware’s simplified approach, proper record-keeping is essential:

• Submit After Occasion Reports (AORs) within 30 days after gaming events (Delaware DPR Board of Charitable Gaming, Charitable Gaming Event and Raffle Event pages).
• Corporation annual reports: Delaware domestic exempt corporations must file an annual report with the Division of Corporations by March 1 each year (filing fee $25). Foreign corporations must file an annual report by June 30 each year (filing fee $125) (Delaware Division of Corporations, Annual Report and Tax Instructions).
• Monitor requirements if you solicit in multiple states, as charitable solicitation registration varies significantly across jurisdictions.
• Maintain detailed financial records for potential audits.

For organizations soliciting in multiple states, managing various registration requirements can become complex. Many nonprofits find working with specialized compliance professionals provides reliable support in maintaining good standing across all jurisdictions where they fundraise, with dedicated tracking of deadlines and expert preparation of filings.

When Registration Is Not Required

Delaware offers nonprofits a refreshing break from the complex registration requirements found in most other states. Understanding exactly who doesn’t need to register and under what circumstances can save your organization valuable time and resources.

Delaware’s exemption from state-level CSR

Delaware does not require charitable solicitation registration with the state before soliciting contributions (Delaware Division of Revenue, “Fundraisers and Charitable Solicitations”). This exemption applies to both Delaware-based organizations and those based out-of-state. The state has deliberately chosen not to implement a formal charitable solicitation registration system. Delaware currently has no state statute requiring registration of charitable solicitations or fundraisers with the Department of Justice or any other state agency (Delaware Division of Revenue, “Fundraisers and Charitable Solicitations”). This makes charitable registration significantly simpler in Delaware compared to most other jurisdictions across the United States. Organizations wondering about their charitable solicitation obligations should note that Delaware focuses on disclosure requirements rather than registration. The state mandates that solicitors identify themselves and their organizations, and answer donor questions about fund allocation between administrative costs and charitable purposes (6 Del. C. § 2595(b)).

Types of organizations typically exempt

Beyond Delaware’s blanket exemption from state-level registration, certain organization types commonly receive exemptions across various jurisdictions:

• Educational institutions often qualify for exemptions in many states
• Religious congregations typically enjoy exemption status
• Membership organizations that only solicit from their own members often qualify for exemptions

Moreover, any corporation granted an exemption by the IRS as a 501(c) organization is exempt from Delaware Corporate Income Tax. These nonprofits are also exempt from obtaining a Delaware business license and paying the accompanying gross receipts tax on sales of most goods and services (Delaware Division of Revenue, “Non-profit Corporations”). It’s worth noting that even exempt organizations must fulfill certain requirements. For instance, nonprofits in Delaware must register with the Division of Revenue and withhold Delaware state income taxes on employees performing services within Delaware, and register with the Delaware Department of Labor as applicable. Additionally, private foundations with activities in Delaware must file a copy of Federal Form 990-PF with the Delaware Attorney General (Delaware Division of Revenue, “Non-profit Corporations”).

Municipal-level exceptions to be aware of

Even though Delaware offers state-level exemption, you should remain aware of potential local requirements. Some Delaware counties and municipalities may require charities that solicit in-person to register prior to fundraising (Harbor Compliance, Delaware Charitable Registration guide). These local regulations can vary significantly, making it essential to check with each locality where you plan to conduct fundraising activities. For organizations managing nonprofit license requirements across multiple jurisdictions, these municipal variations add another layer of complexity. Foreign (out-of-state) corporations conducting fundraising in Delaware must still comply with the requirements outlined in 8 Del. C. § 371 and Article IX, § 5 of the Delaware Constitution (Delaware Division of Revenue, “Fundraisers and Charitable Solicitations”). The landscape becomes especially complicated for organizations soliciting across state lines. Each state has different taxes and exemption requirements, which can consume substantial staff time and financial resources. Many nonprofits find that working with experienced compliance specialists offers a practical solution for maintaining compliance across all jurisdictions where they fundraise, providing dedicated renewal management and nationwide coverage.

Special Fundraising Scenarios in Delaware

Beyond the basic solicitation guidelines, Delaware has unique approaches to various fundraising methods that require your attention. Understanding these special scenarios helps ensure your nonprofit maintains compliance while maximizing fundraising potential.

Online fundraising and website donation buttons

Most nonprofits now utilize website donation buttons as their main call-to-action. In Delaware, this online fundraising requires no state registration, yet you must maintain proper disclosures on your website. Your donation button should clearly identify your organization and purpose, plus allow donors to question how funds will be allocated. Remember that even without state registration, multi-state fundraising through your website may trigger charitable solicitation registration requirements in other states where visitors reside.

Using raffles, bingo, and gaming events

Gaming events require specific permits in Delaware regardless of the state’s charitable solicitation exemption. Your organization must apply through Delaware’s DELPROS system and, for many permits (including raffles and charitable gaming events), pay $15 per event date. For raffles specifically, permits are mandatory if ticket prices exceed $5.00 for single drawings, more than $15 for a series of periodic drawings, or if the total prize value is $5,000 or more (Delaware DPR Board of Charitable Gaming, Raffle Event page). Bingo sessions also have prize limitations; for example, the aggregate value of prizes during a session cannot exceed $3,000 (Delaware charitable gaming regulations; see DPR guidance). Furthermore, Texas Hold’em tournaments have stricter requirements—participants must be at least 21 years old and total tournament prizes cannot exceed $13,000 (Delaware DPR Board of Charitable Gaming, Texas Hold’em information).

Working with professional fundraisers or co-venturers

Delaware does not currently require state registration for professional fundraisers or commercial co-venturers. Yet, fundraising professionals must adhere to other regulations before and after events, including maintaining accurate fiscal records and having a written contract with the charitable organization, as applicable (6 Del. C. § 2594).

Crowdfunding and peer-to-peer campaigns

Peer-to-peer fundraising provides an effective way to expand your donor base in Delaware. Managing charitable solicitation requirements across jurisdictions becomes vital as these campaigns often reach donors in multiple states.

Staying Compliant and Avoiding Penalties

While Delaware offers relief from state registration, maintaining proper compliance remains essential for nonprofits operating in the state. Failing to meet existing requirements can result in civil or criminal prosecution under state fraud laws (Delaware Division of Revenue, “Fundraisers and Charitable Solicitations”).

Disclosure requirements for solicitations

Delaware mandates two key disclosures during solicitation: first, you must identify yourself and your organization when requesting donations; second, you must be prepared to answer donor questions about how funds will be allocated between administrative costs and charitable purposes (6 Del. C. § 2595(b)). These requirements apply to solicitations as defined in statute, which include oral and written requests. Professional solicitors also face recordkeeping and contract requirements (6 Del. C. § 2594).

Common mistakes nonprofits make

Organizations frequently stumble with compliance by:

• Failing to register in other states where they solicit, which can lead to fines, penalties, or fundraising prohibitions in those states
• Missing annual filing deadlines with the IRS and state agencies (for example, Delaware domestic exempt corporations must file an annual report by March 1; foreign corporations by June 30)
• Improperly compensating people as independent contractors rather than employees
• Violating solicitation time restrictions (Delaware prohibits solicitation before 8:00 a.m. or after 9:00 p.m., unless the person being solicited authorizes otherwise) (6 Del. C. § 2596)

How to monitor multi-state compliance

For organizations fundraising across state lines, charitable solicitation registration becomes increasingly complex. Each state has different forms, documentation requirements, filing fees, and renewal processes. Creating a comprehensive compliance calendar helps track various deadlines for initial registrations and annual renewals.

Using professional services for peace of mind

Given these complexities, working with experienced compliance professionals can provide dependable support for your nonprofit’s registrations and renewals across all jurisdictions where you fundraise. These specialists offer expertise in state laws, manage submissions across multiple jurisdictions simultaneously, and handle renewals and annual filings with dedicated tracking of deadlines. This allows your team to focus on advancing your mission rather than navigating compliance paperwork.

Frequently Asked Questions

Conclusion

Delaware stands out as an exception in the charitable solicitation landscape. Unlike many states, you won’t need to complete a state-level registration process when fundraising here. This approach can reduce administrative burdens for your nonprofit, allowing you to focus more resources on your mission rather than paperwork. Nevertheless, compliance requirements still exist. You must adhere to disclosure rules during solicitation, check for local municipal registration requirements, and obtain proper permits for gaming activities. Additionally, foreign corporations must appoint registered agents and submit annual filings despite Delaware’s relaxed state regulations. Remember that charitable solicitation registration becomes significantly more complex when your fundraising crosses state lines. Each state maintains different requirements, deadlines, and documentation needs. Therefore, creating a comprehensive compliance calendar helps track various renewal dates across multiple jurisdictions. Many nonprofits find that working with experienced compliance specialists saves considerable time and resources while providing reliable, accurate filings across all jurisdictions. These professionals handle the intricate details of multi-state requirements with dedicated renewal management and upfront pricing, while you dedicate your energy to advancing your cause. Though Delaware offers a reprieve from registration burdens, your organization still needs strategic compliance management, especially when fundraising beyond state borders. Ultimately, your success depends on balancing Delaware’s unique advantages with careful attention to remaining compliance obligations. Through proper disclosure practices and diligent record-keeping, your nonprofit can thrive in Delaware’s fundraising-friendly environment while maintaining legal compliance and donor trust.