Charitable Solicitation Registration

Here's something that surprises a lot of new nonprofit leaders: getting IRS tax-exempt status doesn't automatically give you permission to fundraise. About 40 states (plus the District of Columbia) require nonprofits to register with the state before soliciting donations from residents of that state. This is called charitable solicitation registration.

Each state has its own rules, forms, deadlines, and fees. Some states require registration before you send your first fundraising email. Others kick in after you raise a certain dollar amount. Most require annual renewals with updated financial information. Some states also require you to include specific disclosures in your fundraising materials — like a registration number or a statement about where donors can find your financial information.

The complexity explodes when you fundraise online. If your website accepts donations from all 50 states, you may technically need to register in every state that requires it. This is one of the most commonly overlooked compliance requirements in the nonprofit world — and one of the easiest ways to get in trouble.

Fundraising without proper registration can result in fines, cease-and-desist orders, and serious reputational damage. State attorneys general take charitable solicitation laws seriously, especially after high-profile charity fraud cases. Some states have penalties of $1,000 or more per violation, and violations can be counted per solicitation — meaning every email you sent could technically be a separate offense.

Beyond the legal risk, many institutional funders check your registration status. Some foundations won't fund organizations that aren't properly registered in the states where they operate.