Charitable Fundraising Registration FAQ

Compliance with state charitable solicitation laws is essential to your organization’s ability to engage in charitable fundraising. Below are responses to frequently asked questions.

When and where must an organization register to solicit charitable contributions?

Under state laws, nonprofits must register before soliciting charitable contributions in the state. Registration is also required for professional fundraisers, fundraising consultants, commercial co-venturers, and charitable fundraising platforms. The registration must be renewed annually. The agency overseeing charitable registrations varies by state but can include the offices of the Attorney General, Secretary of State, and Consumer Protection.

Are there any organizations that are exempt from registration?

Depending on the state, an organization that annually raises less than $5,000 – $30,000 in contributions (this minimum annual contribution threshold is generally aggregated across all states) may be exempt from registering. Specific categories of nonprofits may also be eligible for exemptions. For instance, schools, hospitals, and religious organizations are generally exempt in many states. However, the scope of the exemption, as well as the manner of obtaining it, varies from state to state. As such, an evaluation should be undertaken to determine if an organization in one of these categories meets the exemption requirements in each state. Many states also require organizations to apply to confirm the exemption.

If we solicited contributions before registering, will we incur any penalties?

Some states impose late fees or fines on organizations that fail to register before beginning solicitations. A few states may require the organization to file registrations for previous years in which the organization was soliciting without being registered. A few states may issue consent agreements or administrative orders in addition to issuing fines. Such consent agreements or orders generally state that the organization’s solicitation of charitable contributions without being registered constituted a violation of law.

Who is required to register to solicit charitable contributions?

Registration is required by charitable organizations, as well as by professional fundraisers, fundraising consultants, commercial co-venturers, and charitable fundraising platforms.

Charitable organizations must register to solicit charitable contributions in 41 states and the District of Columbia. However, some organizations, such as religious organizations, educational institutions, hospitals, and membership organizations, may be exempt from registration in certain states. Some organizations may also be exempt from registration if they have not exceeded a specified minimum annual contribution threshold.

A professional fundraiser (PFR) is also known as a professional solicitor, paid solicitor, or commercial fundraiser. It is compensated to solicit contributions for or on behalf of a charitable organization. This may include managing a fundraising campaign. The individual or the business may or may not have control over the contributions received. Examples of PFRs include telemarketers and street or other in-person solicitors.

In 43 states, PFRs must register, post a surety bond, file contracts with their nonprofit clients, and submit campaign financial reports.

A fundraising counsel (FRC), also known as a fundraising consultant, is an individual or business that is compensated to plan, manage, consult, advise on, or prepare solicitation materials for a charitable organization but does not directly solicit contributions. Examples of FRCs include, but are not limited to, strategic consultants, direct mail consultants, and fundraising event planners. If the FRC is compensated based on the funds raised or has control of contributions, it may be considered a PFR and be subject to those requirements.

In 28 states, FRCs must register and file contracts, and a few states require them to post bonds and file campaign financial reports.

A commercial co-venturer (CCV) is any person or entity that, for profit, advertises that the purchase or use of certain goods or services will benefit a charitable organization or charitable purpose.

Up to seven states require CCVs to register and/or report, including filing contracts, posting bonds, and/or campaign financial reports.

A charitable fundraising platform (CFP) is an individual or entity that uses the internet to provide a website, service, or platform to persons in California and performs, permits, or otherwise enables acts of solicitation to occur. California’s law for CFPs went into effect on October 7, 2021, with the registration requirement starting on June 12, 2024. Hawaii recently enacted a new law to regulate CFPs, which takes effect on January 1, 2026.

Is registration required in all 50 states?

Up to forty-one states plus the District of Columbia require charitable organizations to register to solicit charitable contributions. Forty-three states require professional fundraisers to register. Twenty-eight states require fundraising consultants to register. Seven states require commercial co-venturers to register. Two states require charitable fundraising platforms to register (California’s requirement came into effect on June 12, 2024, and Hawaii’s registration requirement comes into effect on January 1, 2026).

Do I need to register if I only make internet appeals on our nonprofit's website?

By a literal reading of most state statutes that require registration, internet solicitations that reach residents of the state would seem to trigger registration and reporting requirements. However, in order for a state to obtain the requisite jurisdiction to impose its regulations (including requiring registration) upon an entity’s online charitable solicitation activities, those activities must meet the constitutional requirement of “minimum contacts” with that particular state. Moreover, states acknowledge the practical reality that applying (and enforcing) their registration requirements to every internet solicitation is virtually impossible. With this backdrop, in 2001, the National Association of State Charity Officials (NASCO) issued guidelines, called the Charleston Principles (the “Principles”). The Principles are not binding law; however, NASCO encourages state charity regulators to use them as practical guidelines for applying their state laws to online fundraising activities.

The Principles apply to any of the regulated entities that solicit contributions via the internet (i.e., charities, PFRs, FRCs and CCVs) and summarize that the application of state registration and reporting regimes as follows:

Entities domiciled within the state. An entity is domiciled within a particular state if its principal place of business is in the state. However, according to the Principles, a physical presence within a state, such as a branch or regional office, may also be indicative of appropriate state jurisdiction.
Out-of-state entities whose non-internet activities would require registration in the state (e.g., direct mail or inbound telephone solicitation into the state).
Out-of-state entities that solicit through an interactive or non-interactive website and either (a) specifically target persons physically located in the state or (b) receive contributions from the state on a repeated and ongoing basis, or a substantial basis, through or in response to the website solicitation.

The Principles leave the definition of “repeated and ongoing” or “substantial” to the individual states. Currently, only three states, Colorado, Mississippi and Tennessee, by regulation, have formally adopted numerical thresholds. In Colorado, an entity receives “repeated and ongoing” or “substantial” contributions if it receives at least 50 online contributions, or the lesser of $25,000 or 1% of its total contributions, in online contributions during a fiscal year, respectively. In Mississippi, an entity receives “repeated and ongoing” or “substantial” contributions if it receives at least 25 contributions or $25,000 in online contributions in a year. In Tennessee, an entity receives “repeated and ongoing” or “substantial” contributions if it receives at least 100 contributions or $25,000 in online contributions in a year.

What documents do we need to provide as part of the registration process?

Required information and documents include the organization’s Articles of Incorporation, Bylaws, a list of officers and directors, Form 1023 Application for Tax-Exemption, Form 990 for the most recently completed fiscal year, and (depending on the organization’s annual gross revenues) audited financial statements. In addition, any current fundraising contracts must be filed in the applicable states. Note that several state agencies make these documents publicly accessible through their online charity registration databases.

Do I need a registered agent?

A registered agent is a person or company that you must designate at an address within a state to receive legal mail (like service of process) on your behalf. In Michigan, North Dakota, and Washington, DC, soliciting organizations must have a registered agent if they do not have an office in the state. In other states, an individual within the organization or the state’s Secretary of State can serve as the registered agent.

How does a state become aware that an organization is soliciting unregistered in their state?

States discover noncompliance in several different ways. The most common way is when a fundraiser files a contract with a state as part of its registration, and the state sees that the contracting organization is not registered. Similarly, a state may become aware of an unregistered fundraiser when a charity lists the fundraiser in its annual registration filed with the state. For this reason, it is paramount that charitable organizations and their fundraisers communicate with one another to ensure they have a shared understanding of which states the fundraiser is providing its services or conducting its activities on behalf of the charity, which determines the states in which the contract must be filed. States may also discover noncompliance when an individual makes an inquiry or complaint to the agency that regulates nonprofits in that state.

Are there any special requirements for fundraising contracts?

Yes, many states’ laws require specific provisions to be included in agreements between charities and any professional fundraiser, fundraising counsel, or commercial co-venturer. Our firm’s attorneys can assist you with drafting, reviewing, and negotiating fundraising contracts.

How can Perlman & Perlman help me with my charitable registration compliance?

Our Registration and Compliance office comprehensively manages required state charitable registrations and renewals.

We conduct a legal analysis of your fundraising activities and registration obligations
You will have a dedicated Compliance Specialist with direct access to a knowledgeable attorney
We will prepare and submit the state forms on your behalf, including all applicable extensions
You will receive regular status reports
We will confirm the registration/renewal with the applicable state agencies
You will receive periodic client alerts to keep you informed of changes to the registration requirements and related regulations
We will send you an annual questionnaire to keep your information accurate

Our State Corporate Filing services facilitate timely compliance with your organization’s filing obligations.

Certificate of Authority to Transact Business
Corporate Annual Reports
D/B/A (Assumed Name) Filings
Franchise/Income Tax Exemption
Sales and Use Tax Exemptions

Charitable Fundraising Registration FAQ

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