What Are the Charleston Principles and How Do They Impact Charitable Internet Solicitations?

The National Association of State Charity Officials (NASCO) established the Charleston Principles in 2001. These non-binding principles are designed to guide states in developing a standardized approach to online fundraising and solicitation. More specifically, these principles address when charitable organizations conducting online fundraising must register in the state in which they are soliciting donations. The California Center for Nonprofit Law can assist your charity in interpreting different state charitable registration laws and ensure that you always remain compliant.

Criteria for Required State Registration

Various criteria contribute to the analysis of whether an entity must register with a state for charitable solicitation purposes. Relevant criteria include not only whether the entity is domiciled within or outside a state, but additional factors. Although not all states have legally adopted the Charleston Principles, they serve as helpful guidelines.

In determining whether your charitable organization must meet state registration requirements when conducting online fundraising activities, you must ask whether state courts could constitutionally exercise personal jurisdiction over your charity for the purposes of enforcing a registration requirement. Major criteria that likely indicate required registration include the following:

• A charity specifically targets a state’s residents for solicitation, such as by referring to soliciting contributions from that state or messaging individuals residing in the state; or
• A charity receives repeated, ongoing, or substantial contributions from a state that indicates regular or significant interactions with state residents.

Generally, repeated, ongoing, or substantial contributions refer to the receipt of contributions within an entity’s fiscal year, or a relevant portion thereof, that are of sufficient volume to establish the regular or significant nature of those contributions. In contrast, the contributions are not rare, isolated, or insubstantial. Additionally, some states may set numerical thresholds to distinguish when contributions become “substantial.”

Nonetheless, charities must also recognize that states can and will take enforcement action against entities whose online solicitations mislead or defraud state residents, regardless of whether an entity is domiciled in the state or required to register in that state.

Criteria for Entities Domiciled Inside a State

Generally, any entity domiciled within a state that uses online charitable solicitation methods in that state must register. “Domicile” refers to the state in which the entity has its principal place of business. Registration is a requirement whether the online solicitation methods are passive or interactive, self-maintained or maintained by third parties, or used in conjunction with other types of solicitations.

Criteria for Entities Domiciled Outside a State

Entities not domiciled within a state must register under the laws of that state under the following circumstances:

• Its non-online activities would be sufficient to require registration;
• The entity solicits through an interactive website, and either the entity:
• Specifically targets persons physically located in the state for solicitation; or
• Receives contributions from the state on a repeated or ongoing basis, or on a substantial basis;
• The entity solicits contributions through a non-interactive website, but either:
• Specifically invites further offline activity to complete a contribution; or
• Establishes other contacts with that state, such as sending email messages or using other forms of communication to promote the website; and either the entity:
• Specifically targets persons physically located in the state for solicitation; or
• Receives contributions from the state on a repeated or ongoing basis, or on a substantial basis;

The Principles give specific definitions and examples of what makes a website interactive and what it means to specifically target people physically located in a state for solicitation via a website.

General Exclusions from Registration

Some entities and/or activities should be generally excluded from registration under the Principles. For example, maintaining a website that solicits no contributions but merely provides online program services and information does not require registration. Likewise, receiving unsolicited donations through a website is insufficient to require registration.

Furthermore, entities that provide solely administrative, supportive, or technical services to charities, with no substantive content, are not required to register. One example of such entities is Internet service providers and entities that merely process online transactions for a separate firm operating a website or similar services. However, these entities may be subject to registration requirements if they engage in solicitation, promote a website, or similar actions. Notably, commercial fundraisers, commercial co-venturers, and fundraising counsel do not fall within this exception.

Recommended Practices for Charitable Registration Compliance

Still, charities should keep in mind that not all states have adopted the Charleston Principles, which can make compliance inconsistent from one state to another. Some states also may not enforce registration for charities not meeting the criteria, but that solicit through state-registered platforms.

In conjunction with the Principles, some good practices for charities include:

• Tracking donations to determine their source and the need for additional state registration; and
• Consulting with an attorney experienced in charitable organization law to ensure compliance.

Frequently Asked Questions (FAQ)

When does online fundraising activity create enough connection with a state to trigger registration requirements?

Online fundraising can create a sufficient nexus with a state when a charity’s digital outreach extends beyond a mere nationwide website. Registration is more likely to be required when a charity’s online activity results in meaningful, ongoing interaction with residents of a particular state—such as consistent donations from that state, targeted messaging to its residents, or follow‑up communications encouraging further engagement. Even if a state has not formally adopted the Charleston Principles, regulators often look for patterns of purposeful contact that demonstrate the charity is actively cultivating donors within their jurisdiction.

How do interactive website features affect whether a charity must register in a state?

Interactive elements—such as donation portals, personalized messaging tools, event sign‑ups, or features that collect user information—can increase the likelihood that a charity is considered to be soliciting in a particular state. These features show that the organization is not simply providing information but is inviting users to take action. If those interactions are paired with targeted outreach or result in repeated contributions from a specific state, regulators may view the charity as engaging in solicitation that requires registration. In contrast, a purely informational website with no solicitation components generally does not trigger registration obligations.

What steps can charities take to manage multistate registration risks when fundraising online?

Charities can reduce compliance risk by monitoring the sources of online contributions, reviewing whether their digital content or marketing efforts target specific states, and evaluating whether their website features could be interpreted as active solicitation. Maintaining internal records of donation patterns, reviewing third‑party fundraising platform requirements, and periodically assessing whether new states’ laws apply can help prevent inadvertent violations. Consulting with counsel experienced in charitable solicitation laws is also important, as states vary widely in how they interpret and enforce online fundraising rules.

Protect Your Organization’s Digital Fundraising Future

Staying compliant with multistate charitable solicitation rules is essential to maintaining public trust and safeguarding your organization’s ability to fundraise online. The Charleston Principles clarify when Internet‑based outreach triggers registration obligations, but their interpretation varies widely across states, creating a patchwork of expectations that can be difficult to navigate.

The California Center for Nonprofit Law provides clear, practical guidance to help you assess your online activities, determine where registration may be required, and build a compliance strategy that supports long‑term stability. For experienced support, call (949) 892‑1221, email info@NPOlawyers.com, or connect with us online to ensure your fundraising efforts remain compliant, transparent, and mission‑aligned.