Charitable Solicitation

On today's episode we will cover Charitable Solicitation Registration! If your nonprofit asks people for donations, you probably need to register with state regulators before you make the ask, and the rules are different in every state. We'll break down what charitable solicitation is, how it differs from your IRS tax-exempt status, what the most common misconceptions are, and what organizations should do to stay compliant with these laws. Today we are thrilled to be joined by our BA Summer Legal intern, Lina Zuluaga.

On this Episode

Brittany Leonard

Tim Mooney

Lina Zuluaga (Legal Intern)

Shownotes:

Opening: Intros (, Brittany, )

1.  - Intro about

a. Lina's summer internship experience

2.  - Starting with the basics: What is charitable solicitation and why does it exist?

a. Charitable solicitation registration is a state law consumer protection requirement

i. It is not a federal obligation

ii. States require organizations that ask the public for charitable donations to register with a state regulator, usually the Attorney General or Secretary of state, before they begin soliciting

b. The purpose is fraud prevention and transparency, not taxation.

i. States want to know who is asking their residents for money and how those funds are being used.

c. Roughly 40 states, plus D.C. have some form of registration requirement. About 10 states have no general charitable solicitation law. T[LZ1] [BL2] hese states don't have a general pre-registration requirement, though some still impose disclosure or other obligations

i. States with no registration requirements include Delaware, Idaho, Indiana, Iowa, Montana, Nebraska, South Dakota, Vermont, Utah and Wyoming.

ii. States with limited, or conditional registration requirements include Texas and Arizona. Their requirements are triggered by fundraising activities rather than a charitable solicitation act.

d. The key definitions to understand:

i. Solicitation: a request for a contribution for a charitable purpose, through any medium.

1. Example: sending mail to citizens of a particular state, asking them to donate to your cause!