At a Glance

Most nonprofits raising funds in Wisconsin must register for charitable solicitation before legally collecting donations. Organizations with paid staff or those receiving $25,000 or more annually must register with the Wisconsin Department of Financial Institutions (608-261-9555, dfi.wi.gov). Out-of-state organizations must register regardless of the amount raised.

Starting your fundraising efforts without proper charity registration can result in hefty fines and damage your organization’s reputation. Fortunately, navigating Wisconsin’s charitable solicitation requirements doesn’t have to be complicated. Whether you’re establishing a new nonprofit or expanding your fundraising reach, understanding the correct process for obtaining your nonprofit license is crucial for achieving compliance and donor trust.

This step-by-step guide will walk you through everything you need to know about registering for charitable solicitation in Wisconsin. From determining if you need to register to completing the necessary forms and maintaining ongoing requirements, we’ll cover all the essential details. Additionally, services like Labyrinth, Inc. can simplify this process by providing dedicated Nonprofit Specialists who handle every step—from initial filings to renewal management—so you can focus on your mission rather than administrative paperwork.

Understand What Charitable Solicitation Means in Wisconsin

For nonprofits operating in Wisconsin, understanding what constitutes “charitable solicitation” is crucial for achieving compliance. The state has specific definitions and requirements that organizations must follow to avoid penalties.

What qualifies as a charitable solicitation

In Wisconsin, charitable solicitation encompasses any act requesting contributions. This includes both direct and indirect requests for money, property, or other items of value. According to state law, a solicitation occurs through several methods:

• Oral or written requests for donations
• Announcements to news media, radio, television, or other communications seeking support
• Distribution of publications that directly or indirectly seek contributions
• Sales of merchandise, tickets, or memberships where proceeds benefit a charitable organization

Furthermore, any advertisement or tangible item that requests financial support, uses an organization’s name as a reason for making a purchase, or states that a portion of proceeds will benefit a charity falls under solicitation. Working with experienced specialists who understand these nuances can help organizations accurately identify when their activities qualify and ensure they remain compliant from the start.

Types of contributions that require registration

Wisconsin law defines a “contribution” as any grant or pledge of money, credit, property, or other items of value given to a charitable organization. Most nonprofits must register with the Wisconsin Department of Financial Institutions once they begin soliciting or receiving contributions.

Registration requirements are triggered when:

• Your organization has paid staff members, regardless of contribution amount
• Your organization receives $25,000 or more in contributions during a fiscal year

These thresholds determine not only registration requirements but also financial reporting obligations. Organizations receiving over $500,000 annually must submit reviewed financial statements, while those exceeding $1,000,000 must provide audited statements. Professional assistance ensures you meet these specific financial reporting requirements accurately and on time.

Common misconceptions about what is not a contribution

Many organizations misunderstand what counts as a contribution under Wisconsin law. Consequently, they may inadvertently violate registration requirements.

Contrary to common belief, a contribution does not include:

• Income from bingo or raffles conducted under state law
• Government grants
• Bona fide membership fees or dues

However, there’s an important exception: if initial membership is given solely as consideration for making a donation, that grant or pledge of money is considered a contribution.

Out-of-state organizations often mistakenly believe they don’t need to register. Nevertheless, any organization soliciting contributions in Wisconsin must register unless specifically exempt. Another misconception is that online fundraising never triggers registration requirements. In practice, online appeals accessible to Wisconsin residents may be considered solicitation depending on the facts and circumstances. When determining registration needs, remember that appeals benefiting named individuals (like GoFundMe campaigns for specific people) are typically considered private gifts, not charitable donations.

Understanding these distinctions helps ensure your nonprofit maintains proper requirements while focusing on your mission rather than regulatory concerns.

Check If Your Organization Needs to Register

Now that you understand what constitutes charitable solicitation, determining whether your nonprofit needs to register with Wisconsin authorities is your next crucial step. Wisconsin law requires most organizations soliciting charitable contributions in the state to register with the Department of Financial Institutions, yet several exemptions exist.

Who is exempt from registration

Wisconsin law provides several categories of organizations exempt from charitable solicitation registration requirements. These include:

• Religious entities exempt from filing federal annual IRS 990 returns
• Political candidates, parties, and committees required to file with the federal elections commission
• Veterans organizations incorporated under Wisconsin law or chartered under federal law
• Nonprofit postsecondary educational institutions and their foundations soliciting only from students, families, alumni, faculty, trustees, corporations, and patients
• Organizations soliciting contributions for a named individual where all funds go directly to that person
• State agencies and local government units
• Private schools as defined in Wisconsin statutes
• Fraternal, civic, benevolent, patriotic, or social organizations that solicit contributions solely from their membership

Organizations struggling to determine their exemption status often benefit from working directly with experienced specialists who can provide clarity on these complex requirements and help avoid costly mistakes.

Thresholds for contributions and paid staff

Even if your organization doesn’t fall into an exempt category, you might still qualify for exemption based on your financial and staffing situation. Wisconsin establishes clear thresholds that determine registration requirements:

• Organizations that do not intend to raise or receive contributions exceeding $25,000 during a fiscal year AND have no paid employees are exempt from registration
• Once your organization exceeds the $25,000 threshold, you must register within 30 days after the date your contributions surpass this amount

Many smaller nonprofits mistakenly assume they’re permanently exempt, yet registration becomes mandatory once these thresholds are crossed. Proactive monitoring of your contribution levels throughout the year, supported by expert guidance, helps ensure you maintain requirements without administrative burden.

Out-of-state organizations soliciting in Wisconsin

If your nonprofit is based outside Wisconsin, different rules apply. Any out-of-state charitable organization soliciting contributions in Wisconsin must register regardless of the amount raised.

Out-of-state organizations should understand that:

• Registration is required before any solicitation activities begin in Wisconsin
• You must complete Form DFI/LFS/296 (Charitable Organization Registration Statement)

Foreign nonprofits often find the process more complex since multiple state requirements must be balanced simultaneously. Working with specialists who manage nationwide requirements can simplify this process across all jurisdictions where you operate.

Simply soliciting in Wisconsin doesn’t necessarily require foreign qualification as a business entity, though having offices or employees in the state might trigger this additional requirement. Foreign organizations should carefully evaluate their activities in Wisconsin to determine all applicable registration needs.

Understanding your organization’s registration requirements saves you from potential penalties and preserves your nonprofit’s reputation with donors. If you’re uncertain about your status, seeking professional guidance from trusted partners is often the most efficient path to ensuring accuracy the first time.

Prepare the Required Documents and Information

Once you’ve determined that your organization needs to register, gathering the necessary documentation is the next critical step in the charitable solicitation registration process. Assembling these materials in advance will streamline your application and help you avoid delays.

Articles of Incorporation and bylaws

The Wisconsin Department of Financial Institutions requires specific organizational documents as part of your charitable solicitation registration. You must submit:

• Your organization’s Certificate of Incorporation (non-Wisconsin corporations only) including any name change amendments
• Complete bylaws (unless organized as a trust)
• For out-of-state organizations, a certificate of good standing from your home state

These documents establish your organization’s legal status and operational framework. The name on your application must match exactly what appears on your Certificate of Incorporation. Organizations often find this document collection phase challenging, which is why many turn to dedicated specialists who can guide you through the process and ensure all requirements are met correctly.

Federal EIN and IRS 501(c)(3) status

To complete your Wisconsin charitable organization registration, you’ll need to provide:

• Your IRS Determination Letter confirming 501(c)(3) status (or state approval letter)
• If your tax-exempt status is pending, submit IRS Form 1023 or 1023-EZ instead

The IRS requires organizations seeking 501(c)(3) exemption to use Form 1023 or the shorter Form 1023-EZ (available to certain small organizations). Both forms must be submitted with the required fee through Pay.gov. Having proper documentation of your tax status is essential for successful registration in Wisconsin.

Financial statements and audit requirements

Wisconsin’s financial reporting requirements vary based on your contribution levels:

• Organizations receiving more than $1,000,000 in contributions during the previous fiscal year must submit audited financial statements
• Those receiving between $500,000–$999,999 must provide reviewed financial statements

Important to note: Effective for fiscal years beginning on or after March 23, 2024, the audit threshold increased from $500,000 to $1 million, while the review threshold rose from $300,000 to $500,000.

Both audited and reviewed statements must be:

• Prepared according to Generally Accepted Accounting Principles (GAAP)
• Completed by an independent certified public accountant

Under certain circumstances, organizations can apply for a waiver of these requirements. You may request this waiver if:

• Your contributions were less than $100,000 during each of the past 3 fiscal years, and
• During the fiscal year being reported, you received one or more contributions from a single contributor exceeding $200,000 (for a review waiver) or $400,000 (for an audit waiver)

The waiver application must be submitted within 90 days after your fiscal year-end. Managing these complex financial requirements is precisely why many organizations work with experienced professionals who understand the nuances and can ensure requirements are met while minimizing administrative burden.

Preparing these documents thoroughly will facilitate a smoother application process and help establish your organization’s credibility with the Wisconsin regulatory authorities.

Complete the Wisconsin Charitable Organization Application

With your documents prepared, you’re ready to tackle the Wisconsin charitable solicitation registration process itself. Completing Form DFI/LFS/296 accurately is crucial for approval and avoiding unnecessary delays.

How to fill out Form DFI/LFS/296

The Wisconsin Charitable Organization Application (Form #296) requires specific information about your organization’s structure and fundraising activities. Prior to starting, gather these essential items from the application checklist:

• Your Federal Employer Identification Number (FEIN)
• Your organization’s fiscal year end date
• Financial information about contributions received
• Details about any professional fundraisers or fundraising counsel engaged by your organization

When completing the form, you’ll need to provide details about your officers, directors, and individuals responsible for fund custody and distribution. If applicable, you may be required to submit Form #2252 (Convictions and Pending Charges) as instructed in the application.

Follow the financial reporting instructions in the application to ensure your submission is complete.

Where to submit and how much it costs

Once completed, submit your application to the Wisconsin Department of Financial Institutions (608-261-9555, dfi.wi.gov). You can mail it to:

Alternatively, use the street address for hand delivery:
4822 Madison Yards Way, North Tower
Madison, Wisconsin 53705

The initial application fee is $15.00. Typically, processing takes approximately 4-6 weeks. Plan accordingly, as you must register before soliciting contributions in Wisconsin.

When to apply for a waiver of audit requirements

If your organization received more than $500,000 but less than $1,000,000 in contributions, you need reviewed financial statements. Organizations receiving over $1,000,000 must submit audited financial statements.

You may apply for a waiver of these requirements if:

1. Your contributions were less than $100,000 during each of the past three fiscal years, and
2. You received one or more contributions from a single contributor exceeding $200,000 (for a review waiver) or $400,000 (for an audit waiver)

The waiver application must be submitted in writing within 90 days after your fiscal year-end.

Simplify the process with professional assistance

Given the complexity of charitable solicitation registration, many organizations turn to Labyrinth, Inc. charitable registration services for expert guidance. With our Nonprofit Specialists providing personalized support throughout the entire process.

We can help you:

• Accurately complete Form DFI/LFS/296
• Prepare and organize all required attachments
• Submit applications on time with proper documentation
• Handle audit requirement waivers when applicable
• Track renewal deadlines through our secure client portal

Enlisting professional assistance ensures your filings are prepared correctly the first time, giving you confidence to focus on your mission while maintaining full requirements.

Maintain Requirements After Registration

Securing your Wisconsin charitable solicitation registration is just the beginning of your process. Understanding ongoing requirements remains essential for maintaining your nonprofit license and avoiding penalties.

Annual financial report vs. registration renewal

Wisconsin requires two separate annual filings. The annual financial report must be submitted within 12 months after your fiscal year-end with no associated fee. Conversely, registration renewal must be completed before July 31st each year, involves answering online questions, and requires a $54.00 payment. Organizations use one of three forms for financial reporting, depending on contribution amounts.

Deadlines and penalties for late filings

Charitable organizations must renew by July 31st annually. Missing this deadline triggers a $25.00 late fee. More importantly, failing to maintain current registration can interrupt your ability to legally solicit contributions.

How to update your organization’s information

Organizations can modify their information during the online renewal process or anytime by logging into their account through the DFI website. Simply click on “Name & Address Change” to update your details.

Professional renewal management

For seamless ongoing requirements, Labyrinth, Inc. offers comprehensive renewal management services. Our dedicated team tracks every deadline, prepares required forms, and ensures timely submissions across all jurisdictions where you operate. With access to our secure client portal, you can monitor filing status and maintain documentation while our specialists handle the administrative details.

Many nonprofits trust our proactive approach to maintain uninterrupted fundraising authorization, allowing leadership teams to focus on mission-critical activities rather than deadlines.

Frequently Asked Questions

Conclusion

Navigating Wisconsin’s charitable solicitation requirements might seem overwhelming at first, but following this step-by-step guide makes the process manageable. Throughout your nonprofit journey, understanding Wisconsin’s specific definitions and thresholds remains crucial for legal fundraising operations.

After determining your registration needs, gathering the correct documentation becomes your foundation for achieving requirements. Remember that financial reporting requirements vary based on your contribution levels, with different thresholds triggering reviewed or audited statements. Many organizations find working with experienced specialists invaluable during this document preparation phase, ensuring accuracy and completeness from the start.

Completing Form DFI/LFS/296 accurately prevents unnecessary delays and rejection. You must pay close attention to deadlines both for initial registration and ongoing requirements. Missing the July 31st renewal deadline results in penalties and potential interruption of your fundraising activities.

Most importantly, charitable solicitation requirements don’t end with registration. Your organization must maintain current information and submit timely renewals to continue fundraising legally. Professional services that provide dedicated renewal management and secure tracking systems can streamline this ongoing process, especially for organizations operating across multiple states.

Proper registration demonstrates accountability to donors and protects your nonprofit from penalties. Rather than viewing Wisconsin nonprofit license requirements as obstacles, consider them opportunities to establish credibility and trust. Through careful preparation, reliable execution, and ongoing professional support, your organization can maintain full requirements while focusing primarily on your mission and the communities you serve.