Top 5 Questions Nonprofits Ask About Fundraising Registration

If your nonprofit is fundraising beyond local events, you might have wondered: Do we need to register with other states? Registration rules vary nationwide, and many organizations aren’t sure where to start. At Affinity Fundraising Registration, we’ve helped hundreds of nonprofits answer common charitable solicitation registration questions.

Here are the five most common questions we hear—and three clear signs that it might be time for your organization to register.

1. Do all states require registration?

Not all, but most. 38 states plus the District of Columbia require charitable solicitation registration. Arizona and Texas have very limited requirements such that most nonprofits won’t need to register within those districts. Delaware, Iowa, Idaho, Indiana, Montana, Nebraska, South Dakota, Utah, Vermont, and Wyoming are the states that currently don’t require any solicitation registration. Affinity provides an interactive state map of which states require registration—whether online, hardcopy, or both—with links to official websites.

Adding to the complexity, several states tie registration requirements to thresholds. For example, some only require registration if you raise more than $25,000 annually or if you hire a paid solicitor. Because thresholds and rules differ per state, most nonprofits benefit from a third-party strategist to keep track of changing regulations—even if they only fundraise in a few states today.

2. How does state registration differ from IRS tax-exempt status?

IRS tax-exempt status (your 501(c)) establishes your federal exemption from income tax. State fundraising registration is separate—it regulates your ability to solicit contributions. It may be helpful to see it this way: the IRS recognizes your nonprofit’s charitable purpose, while states oversee your fundraising activity based on that purpose.

A common mistake is assuming that once you’ve received your IRS determination letter, you’re “all set.” Tax-exempt status does allow you to receive charitable contributions from anyone anywhere, yet, to legally ask donors for contributions in many states you’ll need to register at the state level.

3. Does online fundraising trigger registration requirements?

Yes, even online fundraising can be a compliance trigger, in most cases—and this is one of the biggest surprises for nonprofits. Any of the following activities may count as charitable solicitation, especially when combined:

• Adding a “Donate” button to your website
• Running crowdfunding campaigns on platforms like GoFundMe, Facebook, or Givebutter
• Emailing or mailing to a donor list that crosses state lines

Even if your nonprofit is small, if residents of a state can donate online, that state may expect you to register. Regulators are increasingly concerned about digital solicitations, making online fundraising one of the top factors to consider regarding registration.

4. How long does the process take?

Timelines and depth of requirements vary by state. The most time-consuming aspect of registration is typically the variability and breadth of paperwork and addendums required by each unique state. Initial registration is often the slowest step, since states may require state of domicile filings, IRS filings, financial statements, or even board signatures.

Renewals are generally quicker—but most states require them annually, and deadlines are all over the place and easy to miss. Falling behind can trigger penalties or suspension of your ability to fundraise until you’re back in good standing. Some states issue approvals in just a few days or weeks, while others can take several months.

5. What happens if we don’t register?

Consequences for never registering range from administrative penalties to reputational damage:

• Fines and fees for ignored deadlines or unregistered solicitations
• Cease-and-desist orders, preventing you from soliciting in that state
• Loss of donor trust, and missed opportunities for awarded grants

Noncompliance can complicate grant applications since, increasingly, funders ask for (or verify) registration as part of their due diligence. Staying compliant isn’t just about avoiding penalties, it’s about showing donors that your organization operates transparently in accordance with the law.

3 Signs Your Nonprofit Might Need to Register

Unsure if registration applies to you? Here are three warning signs to watch for:

1. You’ve received contributions across state lines. Even a single gift from an out-of-state donor can flag a possible registration requirement in some states, especially when/if you then solicit that donor to give again.
2. You’re soliciting donations online. A donation page, email blast, or peer-to-peer campaign often counts as solicitation in multiple states.
3. A grant application asks for proof of registration. A number of foundations and corporate funders require documentation before awarding funds.

If any of these sound applicable, today or in the near future, it’s time to take a closer look at your compliance obligations.

Simplify Registration with Affinity

Managing registrations across dozens of states can be overwhelming. Affinity stays up-to-date on the changing compliance landscape, as well as provides a single platform for gathering all required info for each state in which your nonprofit wishes to register. Track requirements, file registrations and renewals, and keep fundraising efforts compliant—all through the Affinity Single Portal®.

Request a free estimate to see how Affinity can make compliance simple for your organization.

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. Furthermore, the interpretation and enforcement of these laws can often be complex, and the specifics of your situation can impact how the law applies.

Affinity Fundraising Registration is not a law firm and, as such, cannot provide legal opinions. For all specific legal questions or concerns, we strongly recommend consulting with a qualified attorney who is experienced in nonprofit law and compliance. Hiring a legal professional ensures that your organization is fully aware of its obligations under the law and can act accordingly to remain compliant. 

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.