You probably think of fundraising as receiving funds but state-by-state compliance laws cover not just receiving but providing a path for a donation.

They call this charitable solicitation - and its definition covers nearly every revenue-generating activity.

This includes a passive "donate" button on your organization's website, making any requests for money or property including any offer to sell a product or service - sweeping up nearly every method a nonprofit might employ to raise funds.

Again, it is the act of "soliciting" funds, even passively, that triggers the need for compliance with Charitable Solicitation Registration requirements.

The answer is probably "yes."

If you live in one of the 41 states and raise any funds at all, you likely have a requirement to file in your state. But it might be a much bigger issue for you. Here's why...

...if you ask for donations online you may need to become compliant in all 41 states. Compliance was once a problem only for big, national nonprofits but now it impacts almost any organization regardless of size.

Most states require organizations to register before soliciting, but in most cases allow organizations already displaying a “donate” button or using other avenues, to register in good faith with ‘amnesty’ - without penalty for prior activity.

The process is typically as follows:

• Complete a registration application, using each state’s unique forms and process. The so-called “Unified Registration Statement” is no longer accepted or advised in most states.
• Submitting official, recorded, articles of incorporation, and financial statements to the state charity official.
• Satisfy ancillary requirements, which may include qualifying as a “foreign” (out of state) entity, and naming a Registered Agent.
• Annual renewals are required in all but two states (DC and GA), which are biennial.
• Due dates vary by state, and are often based on the organization’s fiscal year end and/or Federal IRS Form 990 filing dates.
• In many states, an extension may be filed to remain in good standing. Monitoring the matrix of dates and triggers is crucial to prevent falling out of compliance with these laws and risking penalties.

Depending on the state, the agency typically responsible for fundraising regulations is either the Attorney General or the Secretary of State, while the officials in charge have ramped up from passive registration to, in some cases, fairly aggressive regulatory enforcement.

Increasing use of technology leaves even the smallest nonprofits subject to exposure and penalties, with database and online research tools being used not only to unearth noncompliant organizations, but to publicly list them, damaging the reputation of nonprofits beyond any penalties assessed. Board members are particularly at risk as their reputation may suffer broad harm based upon a finding of noncompliance.

Until recently, organizations only had two options for dealing with the maze of fundraising regulations:

1. Do-it-Yourself: Some organizations attempt to navigate the myriad combinations of triggers, filing dates, and attachments and/or audits required, in-house. This can take staff away from important programs and projects for weeks or months and with likely mistakes and delays, causing your organization to incur monetary fines or legal consequences. This is why most nonprofits seek help with these regulations.
2. Professional Firms: Law firms, accountants, and consultants using traditional, clunky processes, billed at an hourly rate, eventually costing between $8,000 and $12,000 per year to register across the U.S.

Now, there is an easier and less costly option with Yippiekiyay’s easy-to-use Fundraising Compliance Service and our friendly expert support. Your organization’s stakeholders and donors get the confidence that comes with compliance...and together, you get to be the “heroes”. Our easy online registration process costs one-third compared with attorney fees, and is completed in a fraction of the traditional staff time.