At a Glance

In Minnesota, most nonprofits must register for charitable solicitation before fundraising if they receive more than $25,000 annually, use paid staff, or work with professional fundraisers. Registration requires submitting Form C1 to the Minnesota Attorney General’s Office with a $25 fee, followed by annual renewals. Organizations meeting specific criteria may qualify for exemptions but must still notify the state.

Starting your charity registration process in Minnesota can feel overwhelming. You have forms to complete, fees to pay, and specific requirements to meet for your nonprofit license. However, understanding the charitable solicitation rules doesn’t have to be complicated. With the right guidance, achieving compliance can be straightforward and you can navigate this process smoothly while avoiding those hefty penalties that come with non-compliance.

That’s exactly why we’ve created this comprehensive step-by-step guide. We’ll walk you through everything you need to know about registering your organization in Minnesota, from determining if you qualify for exemptions to completing your initial application and maintaining annual requirements. If you’re looking for assistance, Labyrinth’s charitable registration services provide dedicated specialists who handle every step of the process, ensuring accuracy and timely filing.

Ready to get your Minnesota fundraising efforts legally squared away? Let’s jump right in!

Understand Minnesota’s Charitable Solicitation Laws

Before you begin fundraising in Minnesota, understanding the state’s charitable solicitation laws is essential. The Minnesota Charitable Solicitation Act governs how nonprofits can legally raise funds within the state. Familiarizing yourself with these regulations will help ensure your organization remains in good standing while achieving its fundraising goals.

Who must register before fundraising

The Minnesota Attorney General’s Office requires most charitable organizations that solicit contributions in the state to register. According to state law, your organization must register if any of the following apply:

• You receive or plan to receive more than $25,000 in total contributions during your accounting year
• Your organization’s functions and activities, including fundraising, are not performed wholly by unpaid volunteers
• You utilize a professional fundraiser

The $25,000 threshold includes donations from all sources, not just those from Minnesota. This requirement affects both in-state and out-of-state nonprofits.

Many organizations find the charitable solicitation registration process complex due to these specific requirements. Working with experienced specialists can help navigate these regulations effectively while ensuring forms are prepared correctly the first time.

What counts as charitable solicitation

Minnesota defines “solicitation” quite broadly. Under state law, solicitation includes any request (direct or indirect) for contributions that will or may be used for charitable purposes. This encompasses:

• Oral or written requests for donations
• Distribution of advertisements, handbills, or publications
• Announcements to media about fundraising events
• Sales of merchandise where proceeds benefit a charity

The state considers a solicitation complete as soon as it’s made, regardless of whether your organization actually receives any contributions. This means even unsuccessful fundraising attempts fall under regulatory oversight. Given these broad definitions, many organizations seek assistance with registration to ensure comprehensive coverage.

Penalties for non-enforcement

Failing to follow Minnesota’s charitable solicitation laws can result in significant consequences. Courts may impose civil penalties of up to $25,000 for each violation. Courts may also order injunctive relief and other remedies, including suspension of registration or appointment of a receiver.

The reputational damage from non-filing can be equally devastating. When potential donors discover an organization isn’t properly registered, donations may decline precipitously. For complex situations involving multiple states or specialized fundraising activities, working with charitable registration experts can help prevent these costly mistakes through proactive monitoring and reliable execution.

Professional fundraisers face their own set of requirements, including registration, filing notices before campaigns, and submitting financial reports afterward. Non-filing is subject to enforcement under Minnesota law.

Understanding these regulations thoroughly is the first step toward successful charity registration and maintaining your nonprofit’s good standing in Minnesota.

Check If Your Organization Qualifies for an Exemption

Many nonprofits in Minnesota may be exempt from charitable registration requirements, saving time and resources. Before starting the registration process, check if your organization falls into one of the exemption categories. The Minnesota Attorney General’s Office provides several exemption pathways based on your organization’s structure, fundraising activities, and contribution levels.

Low contribution threshold exemption

Your nonprofit can qualify for the “de minimis exemption” if it meets all of these conditions:

• You did not receive contributions totaling more than $25,000 during the prior accounting year and do not plan to receive more than $25,000 in the upcoming year
• You do not utilize a professional fundraiser
• Your organization’s functions and activities are performed wholly by unpaid volunteers
• None of the organization’s assets or income inure to the benefit of any officer

This $25,000 ceiling includes donations from all sources, not just those from Minnesota. For instance, if your charity solicited $20,000 in Wisconsin and $10,000 in Minnesota, you would exceed the threshold and thus not qualify for this exemption.

Direct costs of prizes given to the public in connection with charitable gambling may be excluded when determining your total contribution amount.

Volunteer-only organizations

The volunteer-only requirement is a critical component of the low contribution threshold exemption. To qualify, your organization’s “functions and activities” must be performed exclusively by unpaid persons.

This means if you pay anyone to perform services related to:

• Governance or administration
• Fundraising or solicitation of contributions
• Representations to donors

Your organization must register regardless of contribution levels. However, you can still qualify for exemption if you only pay for services unrelated to your core functions, such as cleaning offices, snow removal, or website hosting.

Religious and educational institution exemptions

Religious organizations enjoy specific exemptions in Minnesota. Your organization qualifies if it’s a religious society or organization exempt from filing federal Form 990 pursuant to Internal Revenue Code sections 6033(a)(3)(A)(i) and (iii) and 6033(a)(3)(C)(i).

Educational institutions are exempt if they are:

• Under general supervision of the Commissioner of Education
• Supervised by the Board of Trustees of Minnesota State Colleges and Universities
• Supervised by the University of Minnesota
• Accredited by the University of Minnesota, North Central Association of Colleges and Secondary Schools, or other national/regional accrediting associations

For complex registration cases involving religious or educational institutions, Labyrinth’s charitable registration experts can provide specialized guidance to determine proper exemption status.

Private foundations and membership-based groups

Private foundations, as defined in section 509(a) of the Internal Revenue Code, are exempt if they did not solicit contributions from more than 100 persons during their last accounting year.

Membership-based organizations enjoy exemption if they limit solicitation to persons who have voting rights as members. This may include:

• Fraternal organizations
• Alumni associations
• Professional or trade groups
• Learned societies

“Member” does not include individuals granted membership simply by making a contribution as a result of solicitation.

Organizations soliciting solely for a named individual are exempt if all contributions are transferred to that person with no restrictions or deductions whatsoever.

If you determine your organization qualifies for exemption, you should still notify the Attorney General’s Office by submitting an exemption form. For organizations with complex structures or fundraising approaches, Labyrinth’s charitable registration services can assist in determining your exemption status with personalized guidance from specialists.

Should your organization not qualify for exemption, assistance with charitable solicitation registration can help simplify the registration process and ensure requirements are met properly.

Complete the Initial Registration Process

Once you’ve determined your organization needs to register, starting the registration process promptly is essential. Minnesota law requires charities to register before soliciting contributions in the state. The following step-by-step process will guide you through obtaining your charitable solicitation registration efficiently.

Gather required documents

First, collect all necessary documentation for your registration application. The Minnesota Attorney General’s Office requires specific attachments with your registration form:

• A copy of your organization’s Articles of Incorporation
• Your IRS determination letter (if you have tax-exempt status)
• A complete list of your board of directors, including names, addresses, and compensation paid to each
• A list of all banks or financial institutions where your organization’s funds are deposited (without account numbers)
• Your most recent IRS Form 990/990-EZ/990-PF or financial statement

Having these documents prepared in advance will streamline your registration process.

Download and fill out the registration form

The Minnesota Attorney General’s Office provides a specific form for charitable organizations registering for the first time. You’ll need the “Charitable Organization Initial Registration Form”. This form requires detailed information about your nonprofit, including:

• Your legally established name and any alternate names under which you solicit
• Organization form and date/place of organization
• Address information and contact details
• Tax-exempt status information
• Solicitation methods

The form must be executed by two duly constituted officers of your organization. These officers must acknowledge that the form was executed pursuant to a resolution of the board of directors who have approved its content.

Submit via email to the Attorney General’s office

The most efficient submission method is via email to charity.registration@ag.state.mn.us. When submitting electronically:

• Convert all documents to PDF format
• Ensure the subject line of your email contains your organization’s legal name
• Keep file sizes under 25 MB (split into multiple emails if necessary)
• Name documents clearly (e.g., “Charity Initial Registration”)

After submission, you’ll receive an automatically generated confirmation email verifying receipt. For complex charitable registration needs, assistance ensures your submission meets all requirements with proper documentation and accurate preparation.

Pay the $25 registration fee

A $25 registration fee must accompany your initial registration. You have two payment options:

1. Pay electronically via credit/debit card through the Attorney General’s Office’s payment webpage
2. Mail a check payable to “State of Minnesota”

Electronic payment through the U.S. Bank system involves a non-refundable processing fee, so factor this into your budget.

Use Labyrinth’s charitable registration services for help

The charitable solicitation process can be overwhelming, especially for new nonprofits. Services like Labyrinth’s provide comprehensive management of your registration from start to finish:

• Dedicated Nonprofit Specialists prepare all state-specific forms
• Expert assembly of required attachments with accuracy verification
• Timely filing with proper follow-up and proactive communication
• Secure client portal access to track registration status and store documentation

The typical processing time for Minnesota registrations is 2-3 weeks. By leveraging nonprofit registration assistance, you can focus on your mission while ensuring complete adherence to Minnesota’s charitable solicitation requirements.

Stay in Good Standing with Annual Renewal Requirements

Maintaining good standing after your initial registration is crucial for ongoing fundraising activities in Minnesota. Registered charitable organizations must file periodic reports and stay updated with state requirements to avoid penalties and maintain proper status.

When and how to file your annual report

After registering, your organization must submit an annual report to the Minnesota Attorney General’s Office. Filing deadlines depend on your fiscal year: submit by July 15 if your books operate on a calendar year, or by the 15th day of the seventh month following your fiscal year end. You can file via email to charity.registration@ag.state.mn.us or by mail. Email submissions must be in PDF format with your organization’s legal name in the subject line.

Many organizations benefit from charitable registration services that provide dedicated renewal management, tracking every deadline to keep you in good standing while you focus on your mission.

Required attachments for renewal

Your annual renewal must include several essential documents:

• Complete IRS Form 990 (excluding Schedule B listing contributors)
• Financial statement (if you file 990-EZ, 990-PF, or 990-N)
• List of officers and directors with compensation details
• List of banks where funds are deposited

Larger organizations may need to include audited financial statements. These documents help the Attorney General’s Office verify your organization’s financial accountability.

Late fees and extension options

Failure to file your complete annual report by the deadline results in a $50 late fee in addition to the standard $25 registration renewal fee. You can request a filing extension, which can extend your deadline by up to four months. Assistance with experienced specialists can help prevent costly oversights in your renewal process through reliable deadline monitoring.

How to cancel or reinstate your registration

To cancel your registration, submit a letter to the Attorney General’s Office indicating your wish to discontinue registration. No final report or renewal is required for cancellation.

Should your registration lapse, you can reinstate it by submitting separate renewal filings with financial information for each unregistered year, plus paying both the standard fee and late fee. Organizations with complex needs often turn to charitable solicitation registration experts to navigate reinstatement procedures with personalized guidance.

This renewal requirement is separate from your filings with the Minnesota Secretary of State.

Special Rules for Fundraisers and Gaming Activities

Specialized fundraising methods in Minnesota trigger additional regulatory requirements beyond basic charitable solicitation registration. Understanding these special rules is vital for maintaining good standing while diversifying your fundraising approaches.

Registering as a professional fundraiser

Minnesota defines a professional fundraiser as any person who, for compensation, performs services connected to soliciting contributions. Professional fundraisers must register with the Attorney General’s Office before beginning solicitations, paying a $200 registration fee. Registration expires annually on April 30. Failing to register prior to solicitation may result in civil penalties up to $25,000 per violation.

Bond requirements and contract disclosures

Professional fundraisers with custody of or access to contributions must submit a $20,000 surety bond. All contracts between fundraisers and charities must be in writing and include:

• Detailed description of services
• Whether the fundraiser will have access to donations
• Percentage or estimate of funds the charity will receive

Charitable gaming permits and exemptions

Nonprofits conducting raffles, bingo, pull-tabs, paddlewheels, or tipboards generally require approval from the Minnesota Gambling Control Board. Certain low-prize or limited events may qualify for exclusions or permits depending on prize value and frequency; consult the Minnesota Gambling Control Board for current criteria.

Commercial co-venturer considerations

Despite regulations in several states, Minnesota does not require traditional registration for commercial co-venturers. These business-charity partnerships must follow other regulations before and after fundraising events.

Use Labyrinth’s charitable registration experts for complex cases

Prior to finalizing your charitable solicitation registration, consider assistance. Charitable registration services are particularly valuable when navigating professional fundraiser requirements or multi-state situations. Working with experienced nonprofit registration experts provides specialized guidance needed to address all regulatory requirements accurately while saving you time.

Conclusion

Navigating Minnesota’s charitable solicitation requirements doesn’t have to feel overwhelming. Throughout this guide, you’ve learned the essential steps for legally fundraising in the state. Most importantly, you now understand who needs to register, what qualifies for exemption, and how to maintain good standing over time.

Failing to register when required can result in hefty penalties (up to $25,000 per violation). Therefore, determining your registration status should be your first priority before fundraising in Minnesota. Keep in mind that the $25,000 threshold includes all contributions, not just those from Minnesota residents.

The initial registration process requires specific documentation and a $25 fee. Subsequently, you must file annual renewals to maintain good standing, with potential late fees if you miss deadlines. For organizations with complex structures or those fundraising across multiple states, charitable registration services can significantly simplify this process through expert preparation and proactive deadline management.

Special fundraising methods like gaming activities or working with professional fundraisers trigger additional requirements beyond basic registration. Many nonprofits partner with experienced nonprofit registration experts to ensure all specialized rules are properly followed with personalized guidance from specialists.

Your organization works hard to fulfill its mission. Don’t let registration complications stand in your way. Whether you handle the process yourself or seek charitable registration assistance, staying in good standing protects your reputation and allows you to fundraise without interruption. Proper registration isn’t just about legal requirements (it builds donor trust and demonstrates your commitment to transparency).

Start your registration process today, and ensure your nonprofit can focus on what matters most: making a positive impact in Minnesota and beyond.

Frequently Asked Questions