Charitable solicitation laws are the state-level rules that require your nonprofit to register with a government agency before asking the public for donations, renew that registration each year, disclose certain information to donors, and follow separate rules when you use paid fundraisers or partner with businesses. Roughly 39 states and the District of Columbia impose these requirements, and each writes its own version. If you raise money in more than one state, you generally need a separate registration in each one, and failing to register can trigger fines, fundraising bans, and in some places criminal charges.1Internal Revenue Service. Charitable Solicitation – State Requirements
Which Organizations and Activities Are Covered
State statutes cast a wide net. “Solicitation” generally means any request for money, property, or financial support made with the representation that it will serve a charitable purpose. That covers direct mail, phone calls, email campaigns, social media posts with a donate button, and even placing collection bins in public spaces. The definition of “charitable organization” is equally broad. It reaches any group recognized as tax-exempt under Section 501(c)(3), but it also reaches any entity that presents itself as serving an educational, humanitarian, environmental, civic, or other benevolent goal. You do not need a federal tax-exempt determination letter to trigger the requirement. If you ask the public for money and offer a charitable reason for the ask, most states treat you as a charitable organization for registration purposes.1Internal Revenue Service. Charitable Solicitation – State Requirements
Common Exemptions
Religious organizations are the most universally exempted category. Most states with registration requirements exempt churches, mosques, synagogues, and other houses of worship, though the scope varies. Some states exempt only the congregation itself. Others extend the exemption to religiously affiliated charities that draw most of their funding from the parent denomination. Accredited educational institutions with enrolled student bodies also frequently qualify.
Many states exempt small nonprofits below a revenue or contribution threshold, but the dollar figure varies widely. Some states set the line at $25,000 in annual contributions, others use $10,000 or $50,000, and a few have no small-organization exemption at all. If you plan to rely on an exemption, check the exact wording in your home state and any state where you solicit. Even exempt organizations sometimes need to file a brief claim-of-exemption form rather than doing nothing.
Online Fundraising Across State Lines
A website with a “Donate Now” button can theoretically reach donors in every state, which raises the question of whether you need to register everywhere. The most widely referenced guidance comes from the Charleston Principles, developed by the National Association of State Charity Officials. The core idea is that simply operating a website that accepts donations does not automatically require registration in every state. If you actively target a specific state’s residents through advertising, email campaigns, or social media outreach, or if you repeatedly receive substantial donations from a particular state, you have likely crossed into solicitation there.
That leaves smaller nonprofits with a practical choice. Strict compliance would mean registering in all 39-plus jurisdictions, which is expensive and administratively heavy. Many organizations take a risk-based approach: they register in their home state and in any state where they actively market, hold events, or have a significant donor base, and they accept the low-probability risk of enforcement where their connection is passive. Larger nonprofits with national fundraising programs usually register across the board.
Virtual fundraising events add a layer. Online auctions, raffles, and charitable gaming streams may trigger not just solicitation registration but separate charitable gaming permits, depending on the state. If you are planning a virtual gala with a nationwide audience, treat it like a multi-state solicitation and register accordingly.
What You File and What It Costs
State registration applications are similar enough that you can prepare a single document package and adapt it for each jurisdiction. A typical filing requires:
- Your IRS determination letter confirming 501(c)(3) status. If you have lost yours, you can request a copy from the IRS.2Internal Revenue Service. Obtaining Copies of Exemption Determination Letter from IRS
- Articles of incorporation and bylaws, which establish your legal existence and governance structure.
- A current list of officers and directors with names and addresses.
- Your most recent IRS Form 990, which shows revenue, expenses, program spending, and executive compensation. If you have not filed a 990 yet, some states accept financial statements instead.
- Reviewed or audited financial statements from a CPA, depending on your revenue level and the state.
The Unified Registration Statement consolidates the information most states need into a single standardized form. Thirty-six states and the District of Columbia accept it, though some also require supplemental state-specific forms. The URS covers your legal name, federal employer identification number, contact information, and fundraising methods. You still submit a separate copy to each state, but the core document stays the same.
When You Need an Audit
Several states require nonprofits above a certain revenue or contribution threshold to submit independently audited financial statements. The threshold varies. Illinois and Kansas set the line at $500,000 in annual contributions. Pennsylvania and Minnesota require audits at $750,000. California’s threshold is $2 million in gross annual revenue, and New Hampshire does not require one until you hit $2 million in revenue, gains, and other support. If your nonprofit uses a professional solicitor, some states require an audit regardless of your revenue level. In many states, clean audited books are a prerequisite for being allowed to fundraise at all.
Fees
Initial registration fees range from nothing in some states to more than $1,000 where multiple overlapping filings apply. Typical fees run between $25 and $300, with many states clustering in the $25 to $50 range. Some states use sliding scales tied to your total revenue or contributions, so larger organizations pay more. A handful charge no fee for the initial registration but impose fees on renewals. Check each target state’s fee schedule on the attorney general’s or secretary of state’s website before you budget, because amounts change periodically.
Where To File and How Long It Takes
Most registrations go to the state attorney general’s office, though some states assign oversight to the secretary of state or a dedicated charities bureau. Confirm the right agency for each state before mailing anything. Many states accept electronic filings through their own online portals. For states that still require paper filings, send your packet by certified mail so you have proof of submission.
Processing times vary. Some states confirm registration within a few business days; others may take several weeks, particularly during peak filing periods. Plan on four to six weeks of lead time before launching a campaign, and longer if you are registering in multiple states at once. After approval, the state issues a confirmation, which may be a stamped copy of your application, a certificate, or an automated email receipt. Keep these records organized by state and expiration date.
Annual Renewals and Donor Disclosures
Registration is not a one-time event. Every state that requires registration also requires periodic renewals, almost always annual. The renewal filing typically includes an updated Form 990 and current financial statements. Most states set the renewal deadline four and a half to six months after the close of your fiscal year, which aligns with the Form 990 due date.
If the IRS grants you an extension on your Form 990, most states will honor it for your renewal, though procedures vary. Some require you to submit a copy of your IRS extension request; others grant the extension automatically with no notification. Check each state’s instructions to avoid an inadvertent lapse.
Missing a renewal deadline gets expensive quickly. Late fees typically start at $25 per month and can escalate in states with aggressive enforcement. Some states automatically suspend your right to solicit once your registration lapses, meaning every dollar raised while unregistered is potentially unlawful. Reinstating a lapsed registration often requires paying all accumulated late fees, filing all overdue reports, and sometimes a separate re-registration fee.
Required Disclosures on Solicitation Materials
Beyond registration, about half the states with registration requirements mandate specific disclosure language on your solicitation materials. Websites, donation pages, direct mail, and email appeals may need to include a statement telling donors where they can obtain your financial report or registration information. The exact wording varies by state, and some states prescribe verbatim language. This information must be available free of charge to anyone who asks.1Internal Revenue Service. Charitable Solicitation – State Requirements
A nonprofit soliciting nationally may need a multi-state disclosure block on its website referencing each state’s registration number and contact information. Most large national charities include a standardized disclosure paragraph on their donation pages for this reason.
Penalties for Soliciting Without Registration
State attorneys general take unauthorized solicitation seriously, and enforcement goes well beyond a mailed fine. Common tools include:
- Cease and desist orders that require you to stop all fundraising immediately until you come into compliance.
- Injunctions the attorney general can pursue in court to block specific campaigns or shut down operations.
- Civil penalties, which vary widely. Some states assess penalties per violation, meaning each solicitation sent without registration counts separately. Fines of $1,000 to $5,000 per violation are common in states with aggressive enforcement.
- Criminal charges. In some states, soliciting without registration or filing false information can be charged as a misdemeanor or, for repeat offenders, a felony.
- Public blacklists. Several states publish lists of delinquent or fraudulent charitable organizations, which damages donor trust even after the underlying compliance issue is resolved.
The practical risk is highest for organizations that solicit aggressively in a state without registering. A quiet website that happens to accept a donation from a state where you are not registered is unlikely to draw attention. Running a direct mail campaign, buying advertising, or hiring a solicitor to make calls into a state where you are unregistered is the kind of activity that triggers enforcement. Attorneys general often discover violations through donor complaints, so treating donors well doubles as compliance strategy.
Rules for Professional Solicitors and Fundraising Counsel
If you hire an outside firm or individual to raise money on your behalf, a separate layer of regulation applies. States draw a sharp line between two categories of third-party fundraisers, and the distinction changes what everyone has to file.
Professional Solicitors
A professional solicitor is someone who, for compensation, directly asks the public for donations on behalf of a charity. This is the more heavily regulated category. In most states, professional solicitors must register independently with the state before conducting any fundraising, and the registration requirements are substantially more burdensome than what the charity itself faces. Registration fees for solicitors can reach $1,000, and roughly 38 states also require solicitors to post a surety bond. Bond amounts vary, typically from a few thousand dollars up to $50,000.
A written contract between the charity and the solicitor must be in place before any fundraising begins, and many states require that contract to be filed with the regulating agency. The contract must spell out the percentage of funds the solicitor retains, the duration of the arrangement, and the methods to be used. After a campaign ends, the solicitor typically must file an accounting of all funds received and distributed. Operating without a license or bond can result in significant fines and, in states with criminal enforcement provisions, fraud charges.
Fundraising Counsel
A fundraising consultant or counsel advises, plans, or manages a solicitation campaign without directly asking anyone for money and without handling donated funds. Because they never interact with donors or touch contributions, most states regulate them more lightly. Many states still require fundraising counsel to register and file copies of their contracts, but bond requirements and accounting obligations are generally less stringent or absent. The key test is whether the person makes the ask. If they plan the campaign and your staff makes the calls, they are counsel. If they pick up the phone and ask for donations, they are a solicitor regardless of what the contract calls them.
Commercial Co-Ventures and Cause Marketing
When a for-profit company advertises that a portion of sales will benefit your nonprofit, that arrangement is a commercial co-venture, and at least 22 states regulate it as a distinct fundraising activity. The classic example is a restaurant promoting that 10% of Tuesday’s proceeds go to a local charity, or a retailer selling a product with “a portion of every purchase supports” a named organization.
State laws in this area typically require a written contract between the nonprofit and the business, filed with the state before the promotion begins. The contract must specify the exact dollar amount or percentage of each sale going to the charity, the duration of the promotion, and how the funds will be transferred. Vague language like “a portion of profits will be donated” does not satisfy the rules. Several states require advertisements to disclose the specific dollar amount or percentage at the point of sale, so consumers know how much of their purchase actually reaches the charity.
Some states also require post-campaign reports detailing units sold and income received, which means you should negotiate access to the business’s sales data as part of the contract. The IRS asks about these arrangements on Form 990, Part VI, so even where your state does not regulate commercial co-ventures, the federal reporting obligation exists.
Keeping Your Registration From Collapsing
If your organization fails to file IRS Form 990 for three consecutive years, the IRS automatically revokes your tax-exempt status. That revocation does not just affect your federal tax standing. Most state registration applications and renewals require a current determination letter and recent 990 filings. An organization whose exempt status has been revoked cannot produce either, which effectively makes renewal impossible in most states and can trigger suspension of your registration.
Reinstatement means filing back returns with the IRS, applying for a new determination letter, and then updating every state where you are registered. The process can take months, and you cannot legally solicit donations in the interim. Staying current with your Form 990 filings is the single most important thing you can do to keep your solicitation registrations intact across jurisdictions.
Organizations that have not yet obtained their own 501(c)(3) status, or that want to avoid the complexity of multi-state registration, sometimes operate under a fiscal sponsor. A fiscal sponsor is an established nonprofit that agrees to receive and manage charitable contributions on behalf of a project or newer organization. Because the sponsor is the legally registered charitable entity, donations flow through its registration rather than requiring the sponsored project to file separately. Fiscal sponsorship does not eliminate compliance obligations; it shifts them to the sponsor, who must be properly registered in every state where it solicits.