CHAPTER 7
Fundraising in Other States
Planning to raise money online? If you're asking for donations in other states, you may need to register in those states as well. This is called Charitable Solicitation Registration. It's complex, but vital for staying compliant if your reach grows nationwide.
🌐 Why Multi-State Registration Matters
The internet has made it easier than ever to reach donors nationwide. But with that reach comes responsibility—most states require you to register before soliciting donations from their residents.
Failure to register can result in fines, penalties, and damage to your organization's reputation.
When Do You Need to Register?
Online Fundraising
If you have a "Donate" button on your website, you're potentially soliciting from all 50 states. Many states require registration if you receive even one donation from their residents.
Direct Mail Campaigns
Sending fundraising letters or emails to residents of a particular state typically requires registration in that state before you begin the campaign.
Events & Campaigns
Hosting events or running campaigns that target specific states usually requires registration, even if you're physically based elsewhere.
Key Considerations
- •Registration Fees:
Each state has its own fees, typically ranging from $0 to $400 per year.
- •Renewal Requirements:
Most states require annual renewal, with deadlines that vary by state.
- •Financial Disclosures:
You'll need to submit financial reports showing how donations are used.
💡 Pro Tip
Consider using a registration service that handles multi-state compliance. While it costs money, it can save you significant time and reduce the risk of missing deadlines.