Charitable Solicitation Registration
Most states require non-profits that solicit donations in their jurisdiction to register with a state agency.
Does my organization need to Register?
If you do not register in a state in which you are required to do so, your organization be subject to fines and other penalties. Unlike many other liabilities of a non-profit, your board of directors can be held personally liable for any imposed fines or penalties by the state or IRS.
Additionally, your organization legally does not have the right to solicit in a state where it is required to register. Any contributions solicited may be in legal jeopardy and directed to be paid back to the donor.
Which non-profits must register?
Generally, any non-profit conducting charitable solicitations within the borders of a state, by any means, is subject to that state's law and is therefore required to register. Generally, the operative terms "charitable" and "solicitation" are defined very broadly and could include, for example, a "Donate Now" button on your website.
The soliciting organization need not be a "charity" in a strict sense nor have any physical presence of any kind in the state. So, a letter, phone call, or newspaper ad requesting financial support from a state's residents is enough to trigger the coverage of that state's solicitation law.
Significantly, technical compliance with any state's registration law requires initial registration before the first solicitation has been directed into the state. The fact remains that many non-profits have not done the necessary legal homework before launching fundraising campaigns.
Our Services and Fees
We offer charitable solicitation registration services in every state which requires it. Our legal fee of $250 per state or $5,000 for all the necessary states includes preparing the required forms and supporting documents. Our services include providing your organization with the proper state disclosure notices, and we will also notify you of when the renewal registration filings are due.