The Most Under-Appreciated Management of Non-Profit

Q.What is the most under-appreciated reality of managing a nonprofit?

A. If your nonprofit solicits donations, it is most likely required to register for fundraising activities in one or more states.

Fundraising activities are regulated by state law. The majority of states (40) require charitable nonprofits, as well as any paid professional “fundraising counsel,” or consultant hired to assist the nonprofit with fundraising activities, to register with the state before the nonprofit solicits any donations from residents of that state. All in all - it's complicated!

What’s most important is that your nonprofit earn and retain the donating public’s trust. Following the requirements of state laws is a basic tenet of ethical fundraising.

Note: this information is not intended as legal advice. We recommend you consult your nonprofit’s legal advisor if you have questions on how fundraising regulations affect your nonprofit.

If your nonprofit is engaged in fundraising activities, it is likely that it will need to file a registration form with any state where it is soliciting donations. The majority of states require registration in advance of engaging in any fundraising or solicitation activity. This requirement is known as "charitable solicitation registration."