DIY Fundraising Registration: Overview & Best Practices

Registering your organization before raising funds within a specific state is a critical step to ensure your operations are legal, organized, and successful. This guide breaks down the registration process into four sections: Preparation, Research & Documentation, Registration Process, and Compliance & Reporting. Each section will provide clear steps and tips to help you navigate your registration. Affinity Fundraising Registration has helped dozens of organizations through this process, so if this seems daunting, get in touch with us for a free consultation.

Is DIY Fundraising Registration Feasible?

Before getting started with do-it-yourself fundraising registration, it’s important to understand whether it’s feasible or unrealistic to complete and maintain it in-house. As a general rule of thumb, when aiming to register in <10 states, establishing an in-house process won’t be fun, but will likely be more cost effective. However, when registering in 10 states or more, enough variables begin floating around with potentially stark legal consequences that it’s worth paying for provider services. If you are committed to doing it in-house, start small, and make sure you have dedicated staff committed to learning the ins and outs of the state processes.

Preparation

Before you begin the actual registration, there are a few preparatory steps that will make the process smoother.

Understand the Legal Requirements

Check State and Local Regulations: Fundraising registration requirements vary by state. Research what applies to your location.
Identify Required Registrations: You may need to register your charitable organization with state authorities, depending on the state and possibly the nature of your charity. Some nonprofit organizations, such as religious organizations or certain educational institutions for example, might be exempt from registration requirements in specific states, depending on their mission and structure.
Register in One State vs. Multiple States vs. All States: As we mentioned previously, you’ll need to consider how many states your organization needs to register in based on what’s most cost-effective, comparing donation potential versus registration burden. Research is required to determine whether you should register your organization in a single state, a targeted selection of states, or in every state.

Gather Necessary Information

Organization Details: At the bare minimum, have the following details on-hand.
- Full legal name (including “Inc” or , Inc.” if applicable)
- Full address(es)
- And EIN (Employer Identification Number)
Documentation: Carefully consider the next section.

Research & Documentation

This section will guide you through gathering the necessary documentation and completing preliminary research before submitting your registration. Keep in mind, most states will have additional documents they want from you, unique to their own set of expectations, with some overlap. There will also be different requirements based on whether this is your organization’s first time registering, or if you’re renewing a registration.

Identify Required Documentation

Form 990: The most recently completed fiscal year’s Form 990 is always required. Make sure it’s signed, not encrypted, doesn’t include the Schedule B, and the total file size is <5MB. Note, if you choose to register with an available 990 despite a newer fiscal year just ending, it could present complications, as some states will reject your initial filing until the newer 990 becomes available.
Articles of Incorporation: You’ll need this foundational document and any amended versions of the articles since first incorporated. Note, articles stating you’re organized “for religious purposes” is critical to obtaining many state religious exemptions.
Bylaws: The set of internal rules that govern how your organization operates must be submitted, but only the most recently amended version is necessary in many states.
IRS Determination Letter: Nonprofits will need to prove their tax-exempt status as verified by the IRS.
Financial Review: If a financial review (such as a GAAP-based audit, independent CPA review, or CPA compilation) is already being completed by your organization, gather the version that covers your most recently completed 990’s reporting period.
Form 1023: For some states you may need a signed copy of this original nonprofit tax-exempt application to the IRS.

Research State-Specific Requirements

State Charity Registration: Most states require you to register with their charity division if you are soliciting their residents. Research on each state’s statutes is imperative for full compliance, as there’s often a financial threshold and other nuance qualifiers per state.
Financial Review: About half the states will require a type of financial review (examples listed in 2.1 above) based on your organization’s gross income/revenue or gross contributions. While there may be options for a one-time waiver with a few states, registration will generally be denied without one.
Professional Fundraiser Contracts: When hiring a third-party professional fundraiser, check if they need to be registered in the states within which you solicit. Most professional fundraisers have their own set of registration requirements they need to handle separately from a nonprofit’s registration requirements, but their compliance could impact or impede your compliance.
- At Affinity, we do not handle registration for professional fundraisers; however, we do help with the additional documentation, as required by some states, for the nonprofit who utilize active Consultants, Solicitors, or Service Providers.

Prepare Internal Documentation

Board Resolution: Make sure your board of directors has officially approved the fundraising efforts, and are agreed about who has the responsibility and authority to sign and submit filings on behalf of the organization. Some states even go so far as to require the bylaws be signed and notarized by two authorized officers, or they require an annual board resolution authorizing the application for charitable solicitation registration. Contact Affinity for further clarification on specific state requirements.

Registration Process

Now that you’ve prepared, it’s time to go through the actual registration process. Review these steps carefully, compliance is a fickle beast.

Complete the Registration Forms

Download or Request State Forms: Visit the charity registration website for every state wherein you want to solicit, or contact the appropriate office to obtain the necessary forms.
Fill Out Filings Accurately: Gather as much of the requested information beforehand, including your organization’s details, fundraising activities, and financial reports, to make answering the questions flow more efficiently.
Attach Required Documents: Ensure all required documentation is attached, such as your signed 990, Articles of Incorporation, IRS Determination Letter, financial review, and any other attachments or explanations the state(s) may require.
Sign and Authorize: Have the designated signers execute applications timely with both hardcopy wet-ink signatures and digital authorizations of all submissions.

Submit Your Application

Review for Accuracy: Double check all entries for accuracy before submission.
Submit Electronically or by Mail: Follow the state’s preferred submission method. Many states allow online submission, and some still require physical copies.
Pay Applicable Fees: Be prepared to pay registration fees to states at the time of registration, which can vary depending on the state and the scope of your fundraising efforts (including checks, certified checks, credit card payments, and Electronic Funds Transfers). Note, if you report having already solicited within a state, you may be expected to complete back filings and pay state fees for prior years in which you were fundraising but not yet registered.

Get Confirmation

Confirm All Registrations: Most states will send you a confirmation of registration by email, or by USPS. Keep these on file, and if you don’t receive one, then follow-up with the states to confirm the registration was processed.
Processing Time: Be aware that processing times can vary and many states experience backlogs, so plan your fundraising registration timeline accordingly. Once you’ve submitted a filing to a state, if you don’t hear back within 3 weeks organizations are considered legally clear to fundraise unless/until you hear otherwise from the state. This ensures the state regulatory process does not put an undue restriction on an organization’s freedom of speech.

Compliance & Reporting

After successfully registering, ongoing compliance and reporting are critical to maintaining your fundraising activity’s legal status. This can quickly become complicated if your organization starts the registration process in some states, then changes their fundraising priorities to include states within which they’re not yet registered, and/or lapses in their commitment to maintaining compliance. Remember, Affinity is here to help and talk through your unique situation.

Understand Ongoing Compliance Requirements

Annual Renewals: All states that require registration also require an annual (or sometimes biennial) renewal or reporting of your fundraising registration. Mark your calendar to avoid missing deadlines—sometimes it’s based on your fiscal year, other times it’s based on the date of your initial registration.
File Extensions: Don’t risk paying unnecessary late fees or mistakes due to rushed reporting—many states offer extensions to provide more time to meet the annual requirements. Most will follow the IRS extended timeline for a 990, but not all.
Financial Reporting: Keep accurate records of all donations, expenses, and distributions related to your fundraising efforts.
Solicitation Disclosure: Ensure that all fundraising materials include the required legal disclosures, such as the organization’s name and registration status. Affinity offers a Seal of Compliance customizable to your website that displays all state mandated donor disclosure statements.

File Necessary Reports

Annual Reports: Some states require you to file annual financial reports detailing your fundraising activities and amounts raised or distributed in those states each year. Keep in mind that much of the information reported to states may not change much year to year, but state registrations obligate organizations to update and affirm information annually.
Tax Filings: Ensure you file any necessary tax documents related to the funds raised, including IRS Form 990. Make sure your 990s are prepared timely, and in advance, and that you’re completing an annual financial review appropriate to your size and state requirements. Note that if you’re below a financial review threshold at the time of registration, if/when you grow, you’ll need to be prepared to get the appropriate level of financial review.

Stay Informed of Regulatory Changes

Monitor Legal Changes: Regulations can change, so it’s important to stay informed about any new requirements or changes in the law.
Contact a Compliance Professional: Reach out to a professional fundraising registration organization such as Affinity to ensure ongoing compliance.

Following this guide won’t be easy but will help ensure that your fundraising registration process is smooth, legal, and successful. Remember, thorough preparation and diligent compliance are key to a successful fundraising initiative.

Streamline Your Registration with Affinity

Navigating all of the necessary registration steps and the complexities of fundraising registration across different states can be challenging and time-consuming. Affinity is here to simplify this process with our Full Support or Independent Registration services, and the Affinity Single Portal®—a digital platform specifically designed to make fundraising registration easier and more efficient. Get in touch today to find out more about how we can help get your organization into full fundraising compliance.

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