Charitable Solicitation - State Requirements

Many states have laws regulating the solicitation of funds for charitable purposes. These statutes generally require organizations to register with a state agency before soliciting the state's residents for contributions, providing exemptions from registration for certain categories of organizations. In addition, organizations may be required to file periodic financial reports. State laws may impose additional requirements on fundraising activity involving paid solicitors and fundraising counsel. An IRS training document describes these requirements in greater detail. Charitable organizations may wish to contact the appropriate state agency to learn more about the requirements that may apply in their state, before soliciting contributions. In some states, municipal or other local governments may also require organizations soliciting charitable contributions to register and report.

In addition to registration and reporting requirements associated with the solicitation of charitable contributions, some states require organizations to register and file periodic financial results if they hold assets subject to a charitable trust.

To learn more contact your state association of nonprofits.

Also, you may want to look at the The Unified Registration Statement if your organization raises monies in more than one state!

DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.