Are You Required to Register for Solicitation in that State?

Your team is focused on your mission, your donors are giving generously, and things feel like they’re moving in the right direction. Don’t get derailed by an avoidable compliance obligation. If you’re reaching donors across state lines without the proper charitable solicitation registrations in place, you could be stepping into legal and financial risk. A little self-assessment goes a long way, and this post will walk you through the triggers of registration requirements, common misconceptions, risks, and what to do if you think you have an issue.

What Does “Solicitation” Mean?

Listed below are some of the most common triggers for charitable registrations, all umbrellaed under the most notable criteria called “soliciting” (aka fundraising). Before evaluating whether you need to register, here are a few conditions that count as solicitation.

Sending email campaigns to your donor list and having a “Donate” button on your website: Most states define solicitation broadly as any direct or indirect request for charitable contributions, which can extend to email and online giving pages. The contributing factor isn’t where you’re based, it’s whether a resident of a state has been directly targeted or led to your donation page where they experience a prompt to give.
Running fundraising ads on social media: When using broad language, most states don’t distinguish between a paid ad, an organic post, or other digital outreach: if it’s asking residents to contribute and your ad reaches a state’s residents, similar to email, the registration duty can follow.
Hosting peer-to-peer campaigns or crowdfunding pages: Crowdfunding can trigger registration requirements in multiple states at once, since the internet has such a far reach. The platform processing the payment isn’t responsible for your registration, your organization is. The individuals conducting the targeted outreach and solicitations are doing so within a structure provided by your organization.
Submitting grant requests to foundations in other states: Soliciting grants from foundations is expressly included in definitions of charitable solicitation by many states. A grant proposal is still a request for charitable funds, and the states that treat it as such want your registration documentation.
Hosting events where out-of-state donors attend and contribute: Many states make clear that a request for a contribution counts as solicitation. Inviting out-of-state guests to an event specifically for fundraising can be enough to trigger a registration requirement, even before anyone writes a check. It will apply to the state in which the event occurs, and the home state, especially if there’s a follow-up made after the individuals have returned home.

In this digital age so much of our communication happens online. If your website is publicly accessible, you may already be considered to be soliciting in states where you haven’t registered. [Read more: Does Fundraising Online Require Nonprofit State Registration?]

A Checklist: Are You Likely Required to Register?

Check each item that applies:

We send email campaigns to supporters in multiple states.
We accept online donations, and our donation page is publicly accessible.
We run paid or organic fundraising campaigns on social media.
We’ve received donations from states where we’ve never registered.
We use third-party fundraising platforms like GoFundMe, Givebutter, or Classy.
We work with professional fundraisers or outside solicitation consultants.
We host events attended by donors from out of state.
We apply for grants from foundations located outside our home state.

If you check even one of these off, it’s worth a talk with a professional about your fundraising registration obligations. The more channels you’re using to reach donors, the more likely it is you could hear from multiple states who expect to see a registration on file.

Misconceptions About Fundraising Registration

Every state, every nonprofit, and every fundraising strategy is unique. What isn’t unique are the common false assumptions that can get an organization into trouble:

“Online contributions don’t count as solicitation.” Most states treat digital fundraising the same as any other form of solicitation. If a resident of that state can find your donation page and give, some states may consider that sufficient grounds for a registration requirement.

“We only need to register where we’re headquartered.” Your state of domicile is often your first registration, but it’s rarely your only one. State fundraising requirements are triggered by where you outreach to (potential and current) donors, not just where your organization is based. [Read more: In Which States Should a Nonprofit Register First?]

“Platforms like GoFundMe and Network for Good handle compliance for us.” Fundraising platforms handle payment processing and possibly some advertising. Charitable solicitation registration, however, is first and foremost your organization’s responsibility wherein you must register with your unique EIN.

“We already have our 501(c)(3), so we’re covered.” Your federal tax-exempt status and your state registration obligations are separate obligations with different entities. The IRS recognizes your charitable purpose and allows your income to be tax exempt; individual states regulate your right to solicit contributions from their residents. [Read more: How Does State Registration Differ from IRS Tax-Exempt Status?]

Risks of Noncompliance

Skipping state fundraising registration altogether can lead to various consequences for your organization:

Increased regulatory scrutiny
Fines and penalties, even up to jail time
Loss of grant funding
Delays to campaigns
Cease-and-desist orders
Reputational damage

What to Do Now

If you think your organization might be at risk for noncompliance, start with the following five steps to assess your situation.

Conduct a registration audit. Take stock of where you’re currently registered and where those registrations stand, many states offer searchable online registration databases.
Map where your donations are coming from. Donor data can reveal states you may need to prioritize.
Focus on high-risk states. States with stricter enforcement and lower thresholds need prompt attention.
Set up a renewal tracking system. Annual deadlines vary by state and are easy to miss without a system in place.
Consider outsourcing compliance. For organizations fundraising across multiple states, managing registration in-house can quickly become a significant administrative burden…

Keep in mind, there are layers of complexity when it comes to charitable solicitation, and every state and nonprofit are unique. It can often be better to ask for help than to risk making a larger mess on your own.

How Affinity Can Help

Affinity Fundraising Registration specializes in offering multi-state registration support, ongoing compliance management, and expert guidance tailored to your organization’s situation. As your fundraising grows and your channels expand, staying on top of charitable solicitation registration can be a challenge. If you’re not sure where you stand, Affinity can also help assess your current compliance status, expected responsibilities, and maintenance of nationwide compliance. Reach out for an obligation-free Estimate and begin taking steps to ensure your nonprofit’s compliance: Request a Free Estimate

Disclaimer

The information provided on this page is intended purely for educational purposes and should not be construed as legal advice. Every effort has been made to ensure the accuracy and completeness of the information up until the published date. However, laws related to fundraising registration are subject to change, and variations may occur between states. Affinity Fundraising Registration is not a law firm and, as such, cannot provide legal opinions. By using this site, you acknowledge that Affinity Fundraising Registration holds no liability for any consequences, legal or otherwise, resulting from actions taken based on the information provided on this page.