Charitable Solicitation Licensing

Overview

LicenseLogix assists many non-profit organizations with their compliance needs. As a result, we truly understand the importance of cost-effective development and fundraising for non-profits. Our non-profit experts streamline the process of becoming compliant with the charitable solicitation laws in every state so that our clients can seek donations without concern for state retribution. With our assistance, charitable organizations can focus on their primary mission and feel comfortable

that an experienced professional is managing this vital task of their organization. Our licensing experts navigate the application requirements and follow up with each jurisdiction to ensure that each registration is accepted. We maintain a Licensing Calendar and Database in our License Management System that reminds LicenseLogix and our clients of each renewal in advance. Our clients can log in at anytime and produce a comprehensive report containing all relevant information for each state in which they are registered.

Background

In order to hold non-profit organizations accountable and to protect the public interest, the majority of states have enacted Charitable Solicitation Acts. Currently, forty states require registration and have generally adopted the Model Act Concerning the Solicitation of Funds for Charitable Purposes.

Of those forty states, thirty-seven and the District of Columbia accept the Unified Registration Statement (URS) though most states have also produced their own forms for registration. The application fee, supporting document requirements, renewal deadlines and annual report requirements vary by jurisdiction.

The general rule is that a non-profit conducting charitable solicitation within the borders of a state must register before soliciting funds from residents of that state. The Attorney General of most states broadly define solicitation.

Ramifications of Non-Compliance

The Pennsylvania State Department fined 55 charitable organizations in 2010, charging over $228,850 in fines, with individual charities agreeing to pay fines ranging from $2,500 to $20,000.

Pennsylvania’s State Department dedicated a prosecutor full time to charity cases this year and hopes the increased enforcement sends the message that the state is serious about policing charities according to a spokesperson for the department.

The Federal Trade Commission frequently launches sweep operations to capture fraudulent solicitation practices and has launched a website titled Avoid Charity Fraud.

“FTC and States Unite to Fight Fundraising Fraud”

“FTC Announces ‘Operation False Charity’ Law Enforcement Sweep”

How we help your business:

  1. Ensure that your organization is authorized for fundraising in your home and other states and stay compliant going forward.
  2. Free up the time of the CFO/compliance department to focus on more pressing issues.
  3. Fill out the forms faster and more cost-effectively than using in-house staff’s valuable time.

More Resources: 

- The National Association of State Charity Officials (NASCO) is an association of state offices charged with oversight of charitable organizations and charitable solicitation in the United States. The requirements and procedures for forming charitable organizations differ from state to state, as do the registration and filing requirements for organizations that conduct charitable activities or solicit charitable contributions.


CHOOSE A STATE BELOW FOR SPECIFIC BUSINESS LICENSING INFORMATION:

AL AK AR AZ CA CO CT DC DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS
MT NC ND NE NH NJ NM NV NY OH OK OR PA RI SC SD TN TX UT VA VT WA WI WV WY