Key Takeaways

• More than 40 U.S. states plus D.C. require charitable solicitation registration before asking their residents for donations, regardless of whether funds are actually received.
• The definition of solicitation includes nearly all channels—websites, social media, emails, texts, fundraising events, and direct mail—meaning online giving often triggers multi-state compliance obligations.
• Each state has its own forms, fees, deadlines, exemptions, and disclosure rules, so nonprofits must build a structured compliance calendar and tracking system.
• Professional fundraisers, fundraising counsel, and commercial co ventures often have their own registration and bonding requirements separate from the charity’s obligations.
• Good compliance protects the organization’s reputation, preserves donor trust, and avoids fines or cease-and-desist orders that could disrupt your mission.

Introduction: Why Charitable Solicitation Compliance Matters

Picture this: your nonprofit just launched a year-end campaign featuring email blasts, Instagram stories, QR codes at your gala, and a peer-to-peer challenge that’s picking up steam. Donations are flowing in from supporters across the country. What you might not realize is that every single “ask” in that campaign may be regulated by state charitable solicitation laws—and you could be breaking the rules in a dozen states without knowing it.

State charities officials—typically housed in Attorneys General offices, Secretaries of State, or dedicated charity bureaus—police fundraising activities to prevent fraud and protect donors from misrepresentation. Their oversight ensures that the charitable contributions people make actually go toward charitable purposes rather than lining the pockets of bad actors.

As of 2024, more than 40 states and the District of Columbia require some form of charitable solicitation registration and reporting for nonprofits soliciting donations from their residents. The laws apply whether you’re a national organization with a million-dollar budget or a small volunteer-run group raising funds for the first time.

This guide is intended as practical education, not legal advice. Organizations should consult qualified counsel for state-specific interpretations of these regulations. Throughout this article, you’ll learn who must register, which fundraising activities trigger obligations, how multi-state registration works under frameworks like the Charleston Principles, and how to build a sustainable compliance process that protects your organization.

The Legal Landscape of Charitable Solicitation

Fundraising is primarily regulated at the state level, while the IRS handles tax exempt status and determines whether charitable contributions qualify as tax deductible contributions at the federal level. This dual system means that even though the IRS has granted your 501(c)(3) status, you still have state registration requirements to satisfy.

Approximately 44 states plus D.C. have some form of charitable solicitation registration or reporting requirements. A handful of states—including Delaware, Vermont, and Idaho—have limited or no general registration requirements as of 2024, though this can change as legislatures update fundraising regulations.

The core policy goals behind these laws include:

• Donor protection from fraudulent or misleading solicitation
• Transparency about how donated funds are used
• Prevention of misrepresentation in solicitation materials
• Oversight of charitable assets to ensure they serve the public benefit

State agencies have multiple enforcement tools at their disposal. These include monetary fines and late fees, injunctions prohibiting further solicitation, revocation of registration or exemptions, and public notices warning potential donors about problematic charities. In egregious cases, the attorney general can pursue civil or criminal actions against officers and directors.

Beyond state regulation, local permit requirements may also apply to certain categories of activities. Door-to-door soliciting, raffles, games of chance, and street collections often require registration with city or county authorities and should be checked separately from state requirements.

What Counts as “Solicitation” (and When the Rules Apply)

Most states define solicitation broadly as any direct or indirect request for a contribution, including appeals for money, property, or pledges—regardless of whether the gift is actually made. This means statutes generally require organizations to register before soliciting, not after receiving funds.

Covered activities include:

• Direct mail campaigns
• Phone calls and telefunding operations
• Email newsletters with “donate” links
• In-person asks at events or door-to-door
• Fundraising events and galas
• Peer-to-peer fundraising campaigns
• Crowdfunding appeals
• Social media posts asking for support
• Website donation pages
• Grant applications involving public appeals
• Membership dues that support charitable work

Many states treat a public-facing donation button or “support us” page targeted to their residents as solicitation, even if no specific individual is contacted. Your website simply being accessible to a state’s residents can trigger obligations in certain states.

In most states, obligations are triggered when the organization solicits residents of that state, not when contributions are first received. This means registration often must be completed in advance of any soliciting donations activity.

Definitions vary by jurisdiction. Some states have very broad interpretations that include passive website content, while others rely on a “minimum contacts” or targeting analysis. This inconsistency is one reason why many states adopted advisory guidelines to bring some order to online fundraising.

Online and Multi-State Fundraising: The Charleston Principles and Beyond

The rise of online donations, social media giving, and text-to-give campaigns since the early 2000s has significantly complicated state jurisdiction over charitable solicitation. When anyone with internet access can donate to your organization from anywhere in the country, which states can claim regulatory authority?

In 2001, the National Association of State Charity Officials developed the Charleston Principles—advisory guidelines to help determine when internet fundraising triggers registration in a state. While not legally binding, these principles have influenced how many states approach online solicitation.

The Charleston Principles suggest that registration is generally expected if a charity:

1. Is domiciled in the state (incorporated or has its principal place of business there)
2. Specifically targets residents of the state through advertising, email lists, or other outreach
3. Receives repeated and ongoing or substantial online contributions from that state

Some states have codified numeric thresholds for what constitutes “repeated and ongoing” or “substantial” online contributions. For example, certain states require registration once an organization receives donations from a certain number of donors or exceeds a specific dollar amount from that state’s residents in a year.

Not all states have formally adopted the Charleston Principles, and enforcement approaches differ significantly. Organizations should not assume uniform treatment of online fundraising across all jurisdictions.

The practical implications are significant for nonprofits running nationwide campaigns, Giving Tuesday appeals, peer-to-peer challenges, or crowdfunding projects. A viral fundraiser can attract donors from all 50 states within days, potentially triggering registration requirements in dozens of jurisdictions simultaneously.

Who Must Register: Types of Fundraising Actors

Different categories of fundraisers—charitable organizations, professional fundraisers, fundraising counsel, and commercial co venturers—may each have their own registration and reporting rules under state laws.

As of 2024, over 40 states and D.C. require some category of charitable organization to register before soliciting, while approximately 40 states regulate professional fundraisers and about 30 regulate fundraising counsel. The requirements often overlap but are not identical.

A for profit entity involved in cause-related marketing or charitable sales promotions (commercial co ventures) faces specific regulation in a smaller but significant number of states. The same individual or firm may fall into different categories depending on their role, compensation structure, and control of funds.

Charitable Organizations

For state law purposes, charitable organizations typically include 501(c)(3) public charities, private foundations, and sometimes other nonprofit entities soliciting funds for charitable programs—whether or not gifts qualify as tax deductible contributions.

In roughly 41 states plus D.C., charities must obtain charitable solicitation registration (or claim an exemption) before raising funds from residents. This typically involves filing a “charitable organization registration” or similar form with state agencies.

Common filing components include:

 

Document	Purpose
Application form	State-specific registration form
Articles of Incorporation	Proves legal formation
Bylaws	Shows governance structure
IRS Form 990 or 990-EZ	Recent financial information
Audited financial statements	Required when revenue exceeds threshold
IRS determination letter	Confirms tax exempt status
List of officers and directors	Identifies leadership
Filing fee	Typically scaled to revenue

 

Some states exempt certain categories of organizations, including religious congregations, educational institutions, hospitals, very small charities below a revenue threshold, or membership organizations that solicit only members. Evaluating potential exemptions carefully is essential.

Most jurisdictions require annual renewals or periodic financial reports, often due 4–6 months after fiscal year-end (such as May 15 for calendar-year filers). Missing these deadlines can cause automatic expiration, late fees, or loss of authority to solicit in that state.

Professional Fundraisers (PFRs)

Professional fundraisers—sometimes called paid solicitors—are individuals or companies who, for compensation, directly solicit donations on behalf of a charity and may receive or control the funds raised. This category includes telemarketing firms, door-to-door canvassers, and event callers.

More than 40 states require registration or licensing of professional fundraisers, often with the attorney general or Secretary of State, before conducting a campaign in that jurisdiction.

Typical requirements include:

• Initial registration and annual renewal
• Posting a surety bond (typically $10,000–$50,000)
• Filing copies of fundraising contracts with charities
• Submitting post-campaign financial reports detailing gross receipts, expenses, and net proceeds

During solicitations, paid solicitors must typically make specific disclosure statements—identifying themselves as a paid fundraiser, naming the charity, and answering honestly when donors ask how much of their gift supports the charitable program.

Charities should carefully vet professional fundraisers before signing contracts. Review litigation history, past regulatory actions, and fee structures, and ensure agreements clearly allocate compliance responsibilities.

Fundraising Counsel (FRCs)

Fundraising counsel are consultants who plan, advise, design materials, or manage databases for campaigns but do not directly solicit contributions and do not take possession of funds. They play an advisory role rather than an active solicitation role.

About 30 states regulate fundraising counsel, often through registration requirements and contract filing obligations that are somewhat lighter than those for professional fundraisers.

Here’s a critical distinction: if a consultant begins making solicitation phone calls, is compensated based on a percentage of funds raised, or controls donor funds, many states will reclassify them as professional fundraisers with stricter obligations.

Contracts with fundraising counsel should clearly describe:

• Services to be provided
• Compensation structure (avoiding pure percentage-based arrangements where prohibited)
• Which party is responsible for preparing and submitting state filings

Organizations should treat counsel as compliance partners, involving them early when planning multi-state campaigns or exploring new fundraising channels.

Commercial Co-Venturers (CCVs) and Cause-Related Marketing

Commercial co venturers are for-profit businesses that advertise sales or promotions where a portion of each purchase benefits a named charity. For example: “$1 from every item sold in March 2026 will be donated to XYZ Foundation.”

Around half of the states regulate commercial co ventures in some fashion, but only a smaller group—including Alabama, Massachusetts, South Carolina, and a few others—require actual CCV registration, bonding, or separate financial reporting.

Typical legal requirements include:

• A written, signed contract between the charity and the business
• Clear terms about duration, geographic scope, donation amount (per unit or percentage), and timing of payment
• In some states, pre-filing the contract or posting a bond

Point-of-sale disclosure duties apply in many states, requiring clear notices to consumers on receipts, product packaging, or signage indicating the benefiting charity, exact donation amount, and promotion dates.

Nonprofits should create an internal template agreement for CCV campaigns that can be adapted for different states, ensuring consistent terms, brand protection, and compliance with each state requirements.

State Registration and Reporting: What to Expect

There is currently no nationwide unified portal for charitable solicitation registration, so organizations must deal with each state individually or use third-party compliance services. Some compliance firms claim up to 99% workload reduction through managed registration services.

The general lifecycle of registration follows this pattern:

1. Initial registration in each state where the organization plans to solicit
2. Prompt responses to regulator questions or requests for additional documentation
3. Issuance of registration certificate or confirmation
4. Annual renewals with updated financials and organizational information

Typical supporting documents requested during initial registration include:

• IRS Form 1023 or 1024 exemption application (if applicable)
• IRS determination letter
• Charter documents (articles of incorporation, bylaws)
• Recent financial statements
• List of officers and directors
• Fundraising contracts
• Description of planned solicitation methods

Deadlines, fees, and reporting requirements vary widely. One state may require renewals within 4.5 months of fiscal year-end with an extension option, while another pins the due date to the anniversary of initial registration. Some states mandate resubmission of bylaws annually while other states accept them once.

Maintain a centralized compliance calendar showing each state’s registration status, account credentials, expiration dates, and the responsible staff member or advisor. This single source of truth prevents costly lapses.

Exemptions, Exceptions, and Special Cases

Many states provide full or partial exemptions from registration for certain categories of organizations and fundraising situations, but exemptions are narrowly interpreted and should never be assumed.

Common categories of potentially exempt entities include:

 

Entity Type	Typical Exemption Basis
Religious congregations	Churches, mosques, synagogues and their integrated auxiliaries
Educational institutions	Accredited schools and universities
Hospitals	Healthcare institutions with specific charitable status
Very small charities	Organizations below a revenue threshold (often $25,000–$50,000)
Membership organizations	Groups that only solicit their own members

 

Some states require exempt organizations to file a one-time or periodic “claim of exemption” form, while others grant exemption automatically based on the organization’s nature and activities. For example, Florida’s exemption framework (effective July 1, 2025) requires certain exempt groups—including veterans’ chapters, volunteer-run organizations under $50,000 in contributions, and government bodies—to file exemption claims rather than receiving automatic exemption.

Limited or passive internet-only solicitation, without targeted outreach or significant receipts from a state, may qualify for relief in a handful of jurisdictions. However, this should not be assumed without verifying current law.

Special cases requiring careful analysis include:

• Short-term disaster relief campaigns with unique timing considerations
• Fiscal sponsorship arrangements where multiple parties may have registration obligations
• University-affiliated foundations that may benefit from the educational institution’s exemption

These structures can affect who must register and where, so organizations should seek guidance before launching such initiatives.

Disclosure Statements and Donor Communications

Many states require specific disclosure statements to appear on written solicitations, websites, pledge forms, receipts, and sometimes oral solicitations. These disclosures inform donors how to obtain financial information or contact regulators.

Disclosure elements typically include:

• The full legal name and mailing address of the organization
• A statement that financial information is available upon request
• A sentence naming the state official responsible for charity oversight
• Contact information (phone number or website) for the regulatory office

Several states—including New Jersey, Florida, New York, and others—prescribe exact or near-exact wording that must be used. For example, Florida requires language stating: “A copy of the official registration and financial information may be obtained from the Division of Consumer Services…”

Failure to include the full required language can trigger compliance issues even when your organization is properly registered.

Practical formatting tips for managing disclosure requirements:

• Place disclosures in a readable font size at the bottom of mailers and emails
• Consolidate multi-state disclosures into a single block on solicitation materials
• Include disclosures on online donation pages and receipts
• Update website footer with comprehensive disclosure language
• Train staff on oral disclosure requirements for phone calls

Organizations should maintain a master “disclosure library” mapped to each state’s requirements and review it annually to account for legislative changes. Twenty-four states now require disclosure language on all written solicitations, including websites.

Building a Practical Compliance Program

Setting up an internal system for managing charitable solicitation registration and reporting across states doesn’t have to be overwhelming. Here’s a step-by-step roadmap for building a sustainable program.

Step 1: Inventory current and planned fundraising channels

Document every way your organization asks for donations—direct mail, email, social media, website, events, phone calls, peer-to-peer campaigns, and any other methods.

Step 2: Map donor locations by state

Analyze your donor database to identify which states your supporters call home. This helps prioritize where registration is most urgent.

Step 3: Identify where you’re already registered

Conduct an audit of existing registrations. Many organizations discover they have some state registrations that have lapsed or states where they’ve been soliciting without proper registration.

Step 4: Prioritize new registrations

Focus first on:

• States where your organization is domiciled
• States where you actively market campaigns
• States with the highest donor volume and revenue
• States with significant enforcement activity

Step 5: Create standardized documentation

Prepare a master folder with all documents commonly required across states, including current IRS determination letter, Form 990, financial statements, and organizational documents.

Assign clear internal ownership—such as a compliance officer, finance director, or development operations lead. When budgets permit, engaging external specialists for complex multi-state filings can provide significant resources and expertise.

Use simple tools like spreadsheets, shared calendars, and document management systems to track due dates, state credentials, filing confirmations, and correspondence with regulators.

Schedule periodic internal training sessions (annually at minimum) to brief fundraising, marketing, and leadership teams on what types of activities trigger state registration or disclosure obligations.

Consequences of Non-Compliance (and How to Fix Problems)

Non-compliance can result in penalties, but most state charity officials are willing to work with nonprofits that act promptly and in good faith to correct issues. The key is addressing problems before they escalate.

Possible consequences of non-compliance include:

Consequence	Impact
Monetary fines and late fees	Direct financial cost
Cease-and-desist orders	Must stop all solicitation in that state
Public posting of enforcement actions	Reputational damage visible to donors
Refund requirements	May need to return donations in egregious cases
Revocation of registration	Loss of ability to legally fundraise
Personal liability for officers/directors	Individual board members may face action
Lost funding opportunities	Grantmakers check compliance status

Common problems that trigger enforcement include:

• Soliciting in a state before registering
• Allowing registrations to lapse
• Failing to renew on time
• Omitting required disclosures from solicitation materials
• Neglecting to report professional fundraiser campaigns
• Missing filing deadlines for annual reports

Concrete steps to remediate compliance issues:

1. Conduct an internal audit to identify all gaps
2. Contact state regulators proactively to explain the situation and ask for guidance
3. File missing registrations and reports (sometimes retroactively)
4. Pay any outstanding fees or penalties
5. Implement controls to avoid repeating errors
6. Document all remedial actions

Document your remedial actions and updated procedures so that, if asked by regulators or major donors, your organization can demonstrate a thoughtful, good-faith approach to compliance. Some states, including Florida, offer safe harbor provisions for promptly corrected first-time inadvertent violations.

Practical Tips for Staying Ahead of Changing Laws

State fundraising regulations, thresholds, and filing portals change regularly. A program that was compliant in 2022 might be out of date by 2026 without active monitoring. Laws regulating charitable solicitation are constantly evolving.

Subscribe to regulatory updates from:

• State charity offices
• National Association of State Charity Officials (NASCO)
• Reputable legal or accounting firms that track developments
• Organizations like Harbor Compliance or Labyrinth that publish white papers on compliance

Schedule an annual compliance review—ideally aligned with audit or Form 990 preparation—to confirm that state registration data, disclosures, and contracts remain accurate and current.

Evaluate new initiatives through a compliance lens before launch, not after. This applies to:

• Cryptocurrency donations
• International crowdfunding platforms
• Influencer campaigns
• New social media channels
• Peer-to-peer giving platforms

Create a written policy that documents your organization’s approach to charitable solicitation compliance. A simple “Charitable Solicitation Compliance Policy” approved by the board should summarize procedures and assign responsibilities. This provides greater detail for staff and demonstrates good governance to regulators and donors alike.

Current trends as of 2026 reflect heightened scrutiny. Florida’s new foreign-donor restrictions signal a push toward national security considerations in philanthropy, requiring nonprofits to screen donors against OFAC sanctions lists and certify compliance with anti-bribery laws. These impose additional requirements beyond traditional registration obligations.

How LicenseComply Can Help

Charitable solicitation compliance is complex, especially when online fundraising and multi-state campaigns bring more than 40 jurisdictions into play. LicenseComply helps nonprofits turn this maze of registrations, renewals, and disclosures into a manageable, trackable process so your team can stay focused on mission-driven work instead of forms.

Our team can:

• Analyze where your organization is soliciting and identify which states require charitable registration, exemptions, or additional disclosures based on your fundraising footprint and channels.
• Prepare and submit initial charitable solicitation registrations and exemption claims, including assembling state-specific forms, fees, and supporting documents like articles, bylaws, Form 990, and financial statements.
• Manage annual renewals and reporting, track deadlines in each jurisdiction, and coordinate responses to regulator questions so your registrations stay active year after year.
• Support compliance for professional fundraisers, fundraising counsel, and commercial co-ventures by helping you keep registration, bonding, contract filing, and disclosure requirements aligned across states.
• Have questions about charitable solicitation compliance? Contact us to talk through your situation.

FAQ

Do we have to register in every state if our website has a donate button?

Most states do not automatically require registration based solely on having a passive donate button. However, registration is generally expected once the organization specifically targets residents of that state or begins receiving repeated and ongoing or substantial donations from that state.

Some states have concrete thresholds (for example, a certain number of donors or dollar amount per year) while other states use more subjective standards. Organizations should review guidance from each state where they attract significant online support.

A practical approach: prioritize registration in states where you’re actively marketing campaigns or where donor volume and revenue are highest, rather than treating all the states the same from day one. This provides practical practice pointers for growing organizations.

Are small or all-volunteer charities exempt from charitable solicitation registration?

Many states offer exemptions for organizations under specific annual revenue thresholds (often $25,000–$50,000 in contributions) or for groups that don’t use paid fundraisers and only solicit members. However, exact criteria vary significantly by state, with not all states providing exemptions.

Exemptions are not automatic in many jurisdictions. Some states require registration of a short exemption form or declaration to claim the benefit, while others rely on self-assessment.

Very small or all-volunteer organizations should verify their status in each state where they solicit. Operating under an incorrect assumption of exemption can create unexpected liability later and result in back fees or penalties.

How long does it take to become registered to solicit in a new state?

Processing times differ widely. Some states with online portals may issue registrations within days or a few weeks. States requiring paper filings or audited financials may take several weeks or longer during busy seasons like year-end.

Plan at least 4–8 weeks lead time before launching a large campaign targeted to residents of a new state, particularly for year-end appeals or major events.

Incomplete applications, missing signatures, or outdated financial statements are common causes of delay. Preparing a complete, accurate package upfront is crucial for timely approval.

Does IRS 501(c)(3) status automatically satisfy state charitable solicitation requirements?

No. Obtaining IRS recognition as a 501(c)(3) public charity does not replace or satisfy state charitable solicitation registration obligations. These are separate regulatory frameworks with different purposes.

Many states require a copy of the IRS determination letter and recent Form 990 as part of registration, but they still impose their own separate forms, fees, and deadlines beyond federal requirements.

Organizations newly recognized by the IRS should treat state registration as an immediate follow-up step in their launch process before beginning broad fundraising.

Can we delegate all compliance responsibilities to our professional fundraiser or consultant?

While contracts can and should require professional fundraisers or consultants to assist with filings and provide necessary information, the charity itself usually remains ultimately responsible for legal compliance in most states.

Include explicit clauses in agreements describing which party will register, file reports, maintain records, and pay fees. Require timely delivery of campaign data needed for state reporting.

Don’t assume vendors are always current on every state’s requirements. Internal oversight and periodic independent checks remain essential to protect your organization from compliance gaps created by third-party vendors.

Disclaimer: LicenseComply provides professional business licensing and compliance services. However, the informational content on this site (including articles, guides, tools, and videos) is provided for general educational purposes only and does not constitute legal, tax, or accounting advice. Laws and regulations change frequently, and we cannot guarantee that all information is accurate, complete, or up to date for your specific circumstances. Your use of this website and its content does not create an attorney–client, accountant–client, or other advisory relationship. You should consult with a qualified attorney, accountant, or other appropriate professional for advice tailored to your business.