Charitable Solicitation Registration vs. Corporate Annual Reports

Nonprofits often have some confusion about the differences between charitable solicitation registrations and corporate annual reports. These are both state registrations and both typically need to be renewed annually, but the purposes of these two types of filings are quite distinct. Charitable solicitation registrations allow a charity to legally solicit contributions from residents, corporations, and nonprofits based in a state. Corporate filings, such as corporate annual reports and filing for foreign qualification, on the other hand allow a nonprofit to do business in the state.

If an organization wants to solicit contributions from several states, it will need to file charitable solicitation filings in each of these states. However, the mere act of soliciting contributions does not typically require registering to do business in a state or filing for foreign qualification. Rather, corporate registrations are typically required for states where the nonprofit has offices or employees, where it conducts business such as issuing Charitable Gift Annuities, and the state where it is incorporated. Corporate registrations may also be required in order to take part in state employee campaigns.

There are 41 states that have laws requiring charitable solicitation registration if the nonprofit is soliciting in the state and all 50 states plus DC have corporate registration requirements. Because of the difference between these two types of registrations, it is very common for a nonprofit to need to register in almost all states for charitable solicitation registration, but to only file corporate annual reports in the state in which the nonprofit is incorporated.

Labyrinth can file both charitable solicitation filings and corporate reports on behalf of your nonprofit. If you need any professional help filing an keeping on top of these registrations, please email us or call us at 844-863-0915.