Charitable Registration Requirements for Membership Organizations

Charitable Registration Requirements for Membership Organizations

Membership organizations that solicit contributions from their members typically need to register annually in those states where their members are located and in general have the same charitable solicitation registration requirements as other nonprofits. However, if a membership organization only solicits contributions from its members and not from the public in general, it can qualify for exemptions in most states and will typically only need to register in 15 states. This is considerably less than the roughly 40 states that require registration of a charity that solicits nationwide and which is not a membership organization.

State filings exemptions are not automatic and typically a membership organization would need to file an exemption request in each that that among other things state that the organization is a membership organization that only solicits contributions from its members and which includes relevant supporting information such as the organization’s Articles of Incorporation, Bylaws, and IRS Determination Letter. Ultimately the state will review the exemption form and the supporting documentation and determine if the state will be exempt from filing charitable state registrations in that state. Even after being granted exemptions by most states, there are typically about 15 states that require membership organizations to file state charity registrations annually in order for those organizations to legally solicit contributions in those states.

If you have any questions about the specific requirements or would like to have Labyrinth, Inc. help you with your registrations and exemptions, please email us at info@labyrinthinc.com or call us at 844-863-0915.