Nonprofit Fundraising Registration & Compliance
FAQs
Is registration required in all 50 states?
Most but not all states require some form of registration. Currently, 38 states require nonprofits to register, while 45 states require professional fundraisers to register and only 28 states have provisions in their statute for fundraising consultants. Specific forms and practices vary from state to state. Our firm works closely with regulators to make certain we are current with their requirements and file all applications and accompanying documentation properly and professionally.
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When must an organization register?
By law, charities are required to register prior to conducting solicitation activities or receiving funds within a state. For fundraising consultants and professional solicitors, registration is required prior to the commencement of services. If and when possible, the organization should renew its license prior to expiration.
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What happens if an organization does not register?
All states have the right to impose fines and penalties on those who solicit without registering in their state. Failure to register may also result in loss of right to solicit contributions in the state.
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How does Perlman & Perlman carry out the registration process for its clients?
The firm’s compliance specialists prepare and submit a registration application and other required documentation to each state requiring registration, and then follow up with each state until a license is issued. Our compliance specialists also track and notify clients of all upcoming renewal deadlines, and prepare and submit annual registration renewal applications to each state.
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Who prepares the registration forms?
Our experienced compliance specialists work closely with the firm’s attorneys and with state regulators to ensure that each client’s filings are completed and submitted properly.
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How does Perlman & Perlman handle annual registration renewal?
Two months prior to the first set of registrations becoming due, a renewal package is sent to each client. The package includes a checklist of items that need to be updated with the firm. The package also includes a status report apprising the client of any important information regarding their registrations. During the year, we continue to provide updated reports to keep the client current with their status in each state.
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Do I need a registered agent?
There are currently four jurisdictions (Colorado, Michigan, North Dakota and Washington, DC) that require soliciting organizations to have a registered agent if they do not have an office in the state. A registered agent is a legal representative who is entitled to receive official communications. If needed, our firm can make arrangements for you to obtain a registered agent in the applicable state.
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Is anyone qualified or able to assist me with fundraising contracts?
Yes. Perlman & Perlman is a law firm with expertise in philanthropy and charitable giving. The nonprofit fundraising registration and compliance department is only one department within the firm. The firm’s attorneys can assist you with negotiating and preparing fundraising contracts and other legal matters, as well.
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What are Perlman & Perlman’s registration fees and what do the fees include?
A flat fee is charged for each state in which registration is deemed necessary. The fee varies based on the type of organization (e.g. nonprofit, fundraising consultant, professional solicitor, commercial co-venturer). The flat fee covers preparation, filing and follow-up until the registration is accepted by the state. There may also be administrative expenses (e.g. photocopies, postage) and state filing fees. Please contact Cynthia Mercado, Director, Compliance Department: cynthia@perlmanandperlman.com or (480) 699-8270 for an estimate of the costs.
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