State Fundraising Registration Requirements
Initial Charitable Solicitation Registration
Currently, forty states have laws that govern charitable solicitation activities. These laws define charitable organizations, what form of solicitation triggers state registration, what organizations are exempt from charitable registration, what forms must be filed, to what office initial registrations must be submitted, due dates, if corporate registration is required, applicable fees, charitable registration renewals, and much more. Bottom line, no matter what state or states your charity plans to solicit in, you are required to comply with state-specific charitable registration regulations. Failure to comply could result in severe penalties and fees costing thousands of dollars.
Most nonprofit organizations rely on volunteers and inexperienced personnel to manage their charitable state registrations. While some states have adopted the Unified Registration Statement, which attempted to standardize charitable registrations between states to make it easier to register and manage multi-state charitable registration, most declined to adopt the URS instead sticking with their state-specific laws. To make charitable solicitation registration even more complicated, state laws, forms, and so on are always changing – hence the reason why some nonprofits fail to register.
Registering to solicit in some states is quite easy and straightforward, while in others, it can be quite complicated. Take for example the state of Massachusetts, which has four separate forms for in-state and out-of-state entities depending on if they are registering before or after their initial fiscal year-end. Some states require nonprofits to file additional forms when working with third parties such as professional fundraisers or when engaged in commercial co-venture agreements.
Charitable Solicitation Registration Renewal
One of the reasons why charities are required to register in the states from which they are soliciting donations is for the states to make sure that the charity is adhering to its exempt purposes. In order to make sure that a registered charity is in keeping with state laws, most states require nonprofit organizations to file an application to renew their charitable solicitation registration annually and pay the renewal fee. States that do not require any renewal, require other forms such as an annual financial report, IRS Form 990, etc.
Bottom line, failure to renew your charitable solicitation registration or not filing on time will result in penalties, fines, and in some cases, your organization tax-exempt status could be revoked.
How We Can Help You with Your Charitable State Solicitation Registration
We are proud to be the number one charitable solicitation registration firm nationwide. For the past 30 years, we have filed tens of thousands of registrations on behalf of charities we work with. Our goal is to handle the whole process from start to finish so that your organization can focus on its mission.
Our charitable registration services include preparing state-specific forms, putting together required attachments, requesting extensions, setting up registered agents, filing all registrations in a timely manner, and following up with the states to make sure everything is in order. We provide a client portal, wherein clients can view their registration statuses, profile, forms, and much more. Your dedicated charitable registration specialist is always a phone call or email away.
We believe your organization will benefit greatly from our unmatched experience and know-how. There is a reason why our clients stay with us for decades. Contact us today for a free consultation.