Understanding Charitable Solicitation Registration Requirements
Charitable solicitation registration laws can be an unexpected obstacle to charities seeking to expand their fundraising efforts. Some of these laws also fail to consider new ways of charitable solicitation, such as soliciting donations through websites, text messages, QR codes, and social media sites. Therefore, it is even more crucial that all charitable organizations familiarize themselves with the charitable solicitation registration requirements in the states in which they intend to conduct fundraising activities. Furthermore, it is highly advisable to determine these requirements BEFORE your charity begins soliciting donations in a state to avoid unwanted penalties.
The California Center for Nonprofit Law can assist your charitable organization in complying with state charitable solicitation registration requirements. Together, we will work to ensure that you comply with all applicable state and local laws, thereby avoiding any potential sanctions for noncompliance.
General Charitable Solicitation Registration Requirements
State law governs all charitable fundraising in a particular state. As a result, most states (40 out of 50) have laws that regulate the solicitation of funds for charitable organizations. Most of these state laws require a charity to register with a certain agency in that state before they may direct fundraising efforts toward that state’s residents. The California Center for Nonprofit Law has the experience to provide charitable solicitation registration filing assistance in all states where required.
In some cases, state charitable solicitation registration laws may require charities to file periodic financial reports with a state agency. Furthermore, some municipalities or local governments may impose additional registration requirements for charitable fundraising, depending on the location.
Complying with Charitable Solicitation Registration Requirements
Dealing with unfamiliar legal requirements in another state can be a complex process. The forms and particular requirements can vary widely from one state to another. You will likely need to contact the state government agency responsible for registration in the state to obtain the most up-to-date information and forms.
In some cases, accountants and lawyers are necessary to properly prepare and submit the required information for registration in a state. Charities typically must submit the required forms and information along with a fee, so the costs involved in charitable solicitation registration can be significant. Having legal counsel skilled in preparing and submitting the necessary documents to comply with state charitable solicitation registration laws is critical to ensure compliance.
Another point to keep in mind is that many states require not only an initial registration and fee payment but recurring registration on an annual or biannual basis, as well as payment of additional renewal fees. Charities that fail to comply with the state’s deadlines may face late fees and other penalties. As gathering the necessary information, completing the forms, obtaining signatures from all required parties, and submitting the forms to the appropriate agency can be a substantial amount of work, charitable organizations should prepare these forms and any required documentation well in advance of deadlines.
Frequently Asked Questions (FAQ)
Do states require any additional steps for charitable solicitations beyond registration?
Some states have additional requirements that charitable organizations must meet to remain compliant with state law. For instance, some states require charities to publish certain public disclosures or acknowledgments on written solicitation materials and pledges or donations.
What about charitable solicitation via crowdfunding and “days of giving”? Is this type of fundraising subject to registration requirements?
This type of fundraising often reaches a wide range of potential donors, who may be located in different states. As a result, these fundraising efforts may trigger registration requirements in various states.
Are there exemptions to the charitable solicitation registration requirements for any charitable organizations?
Yes, many state laws contain exemptions for certain charitable organizations that wish to engage in fundraising, such as churches, religious organizations, or educational institutions. The nature of these exemptions can differ widely from one state to the next. For instance, Ca. Gov. Code §12580 et seq. exempts religious corporations from registering or filing annual reports. However, the Attorney General maintains oversight over solicitation practices, including those of religious corporations.
Call the California Center for Nonprofit Law Today
The laws that govern charitable organizations are complex and ever-changing. We aim to inform you of legal changes that affect your charitable organization. If you need legal advice or assistance, we are here to help. The California Center for Nonprofit Law remains current on the law in all the states that require registration and can provide both initial and annual filing assistance in all states where registration is required.
Contact the California Center for Nonprofit Law offices at (949) 892-1221, email us at info@NPOlawyers.com, or visit our website for more information today. We offer a wealth of experience handling the unique legal issues that charitable organizations routinely face.