Does A Charity Need To Register If It Only Solicits Contributions Online?

Does A Charity Need To Register If It Only Solicits Contributions Online?

Generally, a charity needs to file charity state registrations no matter how the organization solicits contributions. If the charity only has a “Donate Here” button on its website and the charity only receives unsolicited donations from its website, most states do not count this as actively soliciting contributions. Thus some states would not require charity state registration for an organization that only raises funds through having a donate button on their website. However, if the charity directs potential donors to its website to give you donations then the charity will need to register the charity in most or all states. This is true if the method that you use to direct people to your website is through direct mail, email, newsletter, or another method. A charity will also need to register in states if it follow up an online donation with a request for an additional donation. This is a common fundraising technique, but is an example of soliciting contributions and as such requires the charity to file state registrations. This is a rough sketch of the rules. For more specifics and details read the Charleston Principles, which The National Association of State Charity Officials (NASCO) released to layout the specific principles that govern internet solicitation and the regulation and registration that it requires. Not all states have signed on to the Charleston Principles and several states essentially say that raising mo new through a donate here button constitutes solicitation and requires charitable state registration. Please feel free to call us at 8444-863-0915 or email us at info@labyrinthinc.com for a free consultation regarding your situations.