Nonprofits often expand their reach by soliciting donations beyond their home state. But with fundraising comes a critical compliance question: do nonprofits need to register in every state they fundraise in? The answer, in most cases, is yes. Charitable solicitation laws are designed to protect donors and ensure transparency, and they apply broadly to nonprofits seeking contributions across state lines.
State Charitable Registration Requirements
Most U.S. states require nonprofits to register with the Attorney General’s office or Secretary of State before soliciting donations from residents. This process is known as charitable solicitation registration. Registration typically involves submitting organizational documents, IRS determination letters, and annual financial reports.
If your nonprofit is asking for donations through events, mailings, phone calls, or even online fundraising campaigns that target residents, state regulators often consider this “solicitation” and require registration.
The Multi-State Challenge
Nonprofits that operate nationally face the challenge of registering in multiple states. Each state has its own forms, fees, and renewal deadlines, making compliance complex. Failing to register where required can lead to:
- Fines and penalties
- Loss of the ability to solicit donations
- Damage to the organization’s reputation
For nonprofits relying heavily on donor trust, the risks of noncompliance can outweigh the administrative burden.
Exemptions and Exceptions
Not all nonprofits need to register everywhere. Many states provide exemptions for:
- Religious organizations such as churches and affiliated ministries.
- Educational institutions including some schools and universities.
- Small nonprofits that raise below a certain revenue threshold.
Additionally, a handful of states—like Delaware, Idaho, Indiana, Montana, Nebraska, South Dakota, Vermont, and Wyoming—do not require charitable solicitation registration at all. Still, nonprofits incorporated in these states must comply with laws in other states where they actively solicit donations.
Nonprofits Need to Register
In general, nonprofits need to register in every state where they fundraise, unless a specific exemption applies. Online fundraising has made these requirements even more significant, as digital campaigns can reach donors nationwide.
To stay compliant, nonprofits should track registration requirements by state, maintain accurate filing records, and consider professional assistance for multi-state compliance. By doing so, organizations can focus on their mission while safeguarding their legal standing and donor trust.