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If your nonprofit is engaged in fundraising activities, it will likely need to file a registration form with every state where it is soliciting donations. Currently, 41 states and the District of Columbia require registration in advance of engaging in any fundraising or solicitation activity. This requirement is known as charitable solicitation registration.
The duty to register applies regardless of what form the solicitation takes. Whether your nonprofit fundraises through a website, social media, texting, grant applications, personal asks, phone calls, direct mail, gives days, crowdfunding, etc. it is considered “soliciting” under the law and triggers a duty to register.
What can happen if youdon’t comply? As state regulators continue to increase enforcement of fundraising laws, nonprofits that play the enforcement lottery are at greater risk than ever. Failure to comply can result in substantial fines and penalties. Directors and officers can be fined personally and some state solicitation laws prohibit a nonprofit from reimbursing its directors and officers for such fines. In addition, states may bar your nonprofit from soliciting donations within the state.
Caritax Law Group can help your nonprofit file the proper registrations in all states that require them. Don’t leave your nonprofit fundraising to chance. Contact us today at email@example.com for an estimate to assist with your charitable solicitation registration needs.