Charity Registration Tips

December 20, 2010 -- In some states, exemption from registration means you have nothing to do. Move on to the next. In others you have to apply for the exemption and be approved.
November 8, 2010 -- There's a recent enforcement action, from just last month. New Jersey authorities fined an individual administrator $17,500 because Ray of Hope was an unregistered charity when it operated there between 2005 and 2009. This case is noteworthy because a former volunteer used the charity's name to commit fraud unrelated to registration requirements. The charity was, in essence, a victim, having come to the Attorney General's attention because of the fraud, but was fined for noncompliance, nonetheless.
October 25, 2010 -- Religious institutions are not automatically exempt from state registration requirements. They are exempt from filing an annual IRS Form 990, but that is not equivalent to state exemption under charity registration laws. Many states do have exemptions for religious affiliations, but a good number do not. You need to check the law in states where you solicit.
October 12, 2010 -- After figuring out where you need to register (i.e. where you solicit), the next step is to look at where you're exempt. You don't want to do more registrations than necessary. Exemptions--in states that have them--come in lots of stripes. The most common are education; religion; healthcare; and small nonprofits raising under $10,000 to $25,000 per year.
September 13, 2010 -- Hiring a registered agent for service of process is required in 19 states. This is an office in the state that will forward legal papers to your office if you're being sued. It's not the kind of mail you want forwarded, which is why you're required to hire one before you can register your solicitations in states like CA, DC, NJ and TX.
August 25, 2010 -- This type of registration is different than incorporating your nonprofit, getting IRS tax-exempt status and registering a Charitable Gift Annuity program. This is authorization to solicit gifts--of any type--in each state where you plan to seek donations.
August 10, 2010 -- After determining the states you need to register in (based on where you solicit), look at each state's exemptions. You might save time by not having to register. Be aware that in many states you must apply for exemption.
July 30, 2010 -- Buying ad space in publications that get mailed to a state is a solicitation in that state, triggering the Charity Registration requirement.
July 19, 2010 -- Are you hosting fundraising events this summer? Your events are solicitations that trigger the registration requirements in states where you host them.
June 18, 2010 -- New York State is offering amnesty to unregistered charities that get registered by June 30, 2010. Click Here for the Charity Bureau's explanation.
May 20, 2010 -- In April, authorities in Florida, New Mexico & Missouri enforced Charity Registration rules against the Navy Veterans Association, issuing cease and desist orders to stop fundraising. Authorities accuse the charity of providing false information on its state filings.
April 27, 2010 -- There are 13 states in which you register as a foreign corporation doing business, not under a charity solicitation statute. These include Delaware, District of Columbia, Nevada and Texas.
March 4, 2010 -- Florida officials sued a non-profit for $10,000 for failure to adhere to state Charity Registration requirements. The January lawsuit against a Tampa Bay police charity was for failure to renew registration. The story is Here. Last October, Georgia officials sued a charity for $25,000 for failure to register. Story Here
February 10, 2010 -- Florida officials sued a non-profit for $10,000 for failure to adhere to state Charity Registration requirements. The January lawsuit against a Tampa Bay police charity was for failure to renew registration. The story is Here. Last October, Georgia officials sued a charity for $25,000 for failure to register. Story Here
February 4, 2010 -- The revised IRS Form 990 asks direct questions about your compliance with state charity registration laws everywhere your non-profit solicits. Make 2010 the year you get into compliance.
December 21, 2009 -- Your year-end appeals have probably landed by now. You're required to register in every state where the mail drops. That applies to email as well as Postal Service mail.
October 8, 2009 -- A Georgia non-profit has been fined $25,000 for failure to comply with Charity Registration laws in that state. It's a home state case and I have long believed that is how enforcement actions will begin. We've seen the same in Arizona and Washington, where warning letters were recently sent to resident charities. The Atlanta Journal-Constitution story is here.
October 5, 2009 -- In Florida, a popular fundraising state due to retirees, failure to register charity solicitations is actually a third degree felony, with fine up to $5,000.
September 24, 2009 -- In many states, using email, paper mail or advertising to induce residents to your website to make a donation, is a solicitation, triggering the requirement to register. These include CA, CO, CT and TX.
August 28, 2009 -- Fees vary wildly. States like Arizona, Arkansas and Michigan are free. Florida costs $400 for the largest organizations and Hawaii can be as high as $750.
August 15, 2009 -- In states where your organization is exempt, you're not necessarily finished. In many states you must apply for your exemption and be approved.
August 1, 2009 -- Look closely at exemptions where you solicit. You will save a lot of time if you're exempt.
July 16, 2009 -- Do you send an annual appeal mailing? You're required to register in states where that mailing drops.
July 2, 2009 -- In every state, mailing a letter that requests a donation is a solicitation, triggering the requirement to register, unless you're exempt.
June 15, 2009 -- In most states, an email requesting donations is a solicitation. You'd have to register where your emails land.
June 3, 2009 -- For many states, the mere existence of a website that accepts donations is a solicitation, triggering the requirement to register in that state, regardless of where your charity is located. NY, NJ, FL, IL and AZ are among these.