As online giving increases, so does the importance of complying with state fundraising regulations. Where receiving occasional gifts from donors in some states might not trigger registration or reporting requirements, in other states it does. To help nonprofits navigate state charitable solitication regulations, Harbor Compliance has published a new white paper on the topic.
The findings in "Charitable Solicitation Compliance" include:
- Some 45 states regulate fundraising.
- Some 41 of those states require nonprofits to register to raise funds in them.
- Several states mandate inclusion of a disclosure statement on solicitations.
- Several states require nonprofits to report on donations originating in those states.
- Registration usually has to be renewed, often annually.
Failure to comply with state regulations can lead to fines, denial of the right to fundraise in a state, loss of state recognition of tax-exempt status, and even prosecution of officers and directors. It can also harm relationships with donors and funders.
Download your free copy of "Charitable Solicitation Compliance."
The preceding post is by Suzanne Coffman, GuideStar's editorial director.