Frequently Asked Fundraising Registration Questions

No. Roughly 38 states and the District of Columbia require charitable solicitation registration. Additionally, some may require corporate business licenses known as a Certificate of Authority to Conduct Business, in order to fundraise there, while others have no fundraising registration requirement whatsoever.

View this map to see the most up-to-date record of which states currently require registration.

Not explicitly, but essentially yes. The IRS requires of all charitable organizations with an income of $25,000 or more to file a Form 990 or 990EZ tax return. As of tax year 2008, that form requires each charity to report:

1. A list of those "states with which a copy of this Form 990 is required to be filed" (Part VI, Section C, 17), and

2. A list of all those states in which the organization is registered (Schedule G, Part I, 3).

Most states require a copy of the Form 990 among the registration materials, therefore #1 is a roundabout way of publicly reporting where are you required to register.

Charitable registration laws exist to protect a state's residents, corporations, and foundations from fraud and abuse, to ensure accountability, and to create a central information source where the authenticity of those organizations can be verified by the public.

Any charitable organization that makes a charitable appeal in a state requiring registration must register in that state, regardless of whether that outreach results in a donation from that state. The definition of a "charitable appeal" varies from state to state, some of which define it quite broadly.

Yes, on a state-by-state basis. Common exceptions (but not in all states) may include colleges and universities, hospitals, foundations of educational institutions and hospitals, churches, and organizations with gross income from all sources of less than $25,000. Membership-based exemptions are very narrow and it is difficult for most member organizations to qualify for them.

All charities are expected to register in each appropriate state prior to soliciting for support from within that state.

Not necessarily, but it can feel that way. It depends on both the state and the way in which you communicate with your constituents. Generally, the states will fall into one of 3 categories:

1. The Reasonable Approach: Three states have adopted a modified version of the Charleston Principles, making it clear having a donate button doesn’t mean you’re soliciting unless you receive a certain amount or quantity of contributions annually via the donate button: CO, MS, and TN. (A handful of other states say they follow the Charleston Principles, but have not formally adopted them into law.)
2. The Far Extreme: a few states consider the presence of a donate button to be a direct solicitation because they take the stance that someone from their state could stumble across your website and be solicited.
3. Somewhere in the Middle: most states won’t consider the mere presence of a donate button to be a direct solicitation. But, if your nonprofit is distributing information in these states with a call-to-action that drives visitors to your website (example: “Learn more about our work at mydomain.org”) and there is then a donate button present on your website, that might be considered a"passive" solicitation that could still trigger the requirement to register.

Learn more about donate buttons and registration requirements on our resources page.

Yes; in most states, it is the act of soliciting that triggers the registration requirement, regardless whether or not funds are received.

Review this article on the nuances of online fundraising registration for more information.

Yes! You could be found to be operating illegally in those states and may be subject to a variety of fines and penalties by continuing to solicit without registering. We have seen some organizations choose to cease soliciting in some states to avoid triggering the requirement to register, but Affinity works on your behalf with state regulators to minimize any possible fines for those who wish to do the right thing by registering late and regaining compliance moving forward.

Registering means you're obeying the law. When you come into legal compliance with the states it shows a commitment to accountability, integrity, and transparency with potential and current donors. Compliance can be used in your marketing when using our Seal of Compliance as an authentication badge on your website. Most importantly, it protects the reputation of your organization, and the passion and commitment to the mission that staff, volunteers, and supporters that value you and help make your organization everything it is.

Again this varies from state to state. Possible penalties include:

• Civil administrative penalties, including being prohibited from fundraising in a state,

• Fines up to $25,000,

• Officers and board members can be held to be personally liable for a charity’s lack of legal compliance as well as be prohibited from serving on the board of another nonprofit,

• Loss of nonprofit status,

• A lawsuit by the state for the return of all funds raised in a state, and

• Loss of donor trust and damage to your reputation.

States that currently impose fines and/or back filing requirements upon initial registration often include: CA, DC, IL, MA, NM, OH, PA, and RI.

Find their requirements and additional information on this page.

In most states it is the Attorney General’s office who oversees registrations and requires, at minimum, the completion of an application form, together with your last financial statement, a list of officers and directors, a copy of your originating document(s), and the organization's tax exempt determination letter from the Internal Revenue Service. However, every state is unique and many have their own requirements, including a bifurcated filing with the Secretary of State’s office as well.

Read more about registration best practices here.

No. When a nonprofit gets registered, they enter into an annual, legal obligation to maintain that registration unless and until they submit a request to withdraw from filing. After the initial registration, most states require submission of an annual report and/or a renewal registration. Due dates vary from state to state and can be fixed, on the anniversary of filing, or calculated by an organization’s fiscal year end. Annual renewals are as much work as — and often more than — the initial registration.

No. Only third-party filing services such as Affinity provide that option; learn more about The Affinity Single Portal®

The URS is a form originally accepted by about 30 entities for initial registration, but currently only accepted by a handful of states. Little differs from state to state on this form, but a number of states require supplemental forms be submitted in addition to the URS. Nowadays for annual renewals and reports most states have their own form and very few will accept renewal using the URS. In a nutshell: filing with the URS is a good way to mess things up and potentially get yourself into hot water with the states – it’s best avoided unless working with a professional.

See this article for more speciic details on the URS.

The total cost of registration is incurred through state filing fees, ancillary expenses, service fees, and time investment. State fees vary by state and are sometimes scaled by the nonprofit's gross income from all sources, but range from $0–$2,000. Smaller or brand new nonprofits might pay as little as $1,700 in state fees to register in 40 entities. Very large nonprofits could pay as much as $6,500. Stem to stern, the total cost of registration for a medium-sized organization when working with a third-party filer can cost in the ballpark of $10,000–15,000 annually. What you may save in service fees you spend in time.

Get a free estimate specific to your organization's unique situation from Affinity's experts.

Affinity offers a variety of charity registration solutions for nonprofits looking to register for fundraising and keep their registration up to date. These options range from our Full Support Plus plan, which takes care of all your registration needs with expedited timetables, to our independent registration support option, where our expert software helps you get registration done on your own. Contact us today to have a conversation about your unique needs, fundraising activities, staff resources, what to expect, and how to weigh your options. We're here to help!