Nonprofit Fundraising Registration & Compliance
Who We Register
Nonprofit Organizations
Nonprofit organizations need a legal partner with expertise in each state’s fundraising registration and reporting requirements because the ability to raise funds is essential for them to successfully fulfill their mission. Registration rules vary by state according to the classification of nonprofit organization, fundraising methods, and purpose. Currently, nonprofits are required to register in 38 states nationwide; they must abide by the fundraising registration requirements in every state where they plan to solicit funds.
Our clients rely on Perlman & Perlman’s experienced registration team for its extensive knowledge of state registration requirements and its ability to manage the entire registration process—from preparation and document submissions, to following up with state agencies until a license is granted, to preparing and filing annual license renewal applications and reviewing contracts.
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Professional Fundraisers
Telemarketing, door-to-door, event marketing, or other direct solicitation campaigns are each handled by fundraising firms that deal directly with donors. Having access to sensitive personal and credit card information means that Paid Fundraisers are regulated very closely by the states to guard against misrepresentation and fraud, and must follow stringent registration requirements. Currently, 45 states require professional fundraisers (also known as “professional solicitors”) to register and report.
Professional fundraisers must register in every state where they plan to raise funds and must submit various required documentation, including End-Of-Campaign Reports. Our clients rely on Perlman & Perlman to assist in ensuring that all registration and reporting requirements have been met for each state where funds are solicited. We also remind clients to inform state agencies regarding contract renewals and terminations, prepare and file applications, and review contracts.
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Fundraising Consultants
Fundraising Consultants assist, manage or advise nonprofit organizations on their solicitation campaigns, but do not directly solicit donations from the public. Because fundraising consultants typically do not have direct contact with donors or access to donor personal and credit card information, they are not as strictly regulated as professional solicitors, nor are they required to submit End-of-Campaign Reports (except in one state). However, they do face documentation and contract notification requirements similar to those required of professional solicitors. Currently, 28 states require fundraising consultants to register.
Our clients rely on Perlman & Perlman to help them comply with their registration requirements, to ensure that contracts include all the state required provisions and notify the state of contract terminations (thereby avoiding penalties).
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Commercial Co-Venturers
Commercial Co-Venturers are for-profit businesses that induce consumers to purchase goods or services with the promise that a portion of the proceeds from the sale or use of goods or services will benefit one or more designated nonprofits. Few states require commercial co-venturers to register because they consider these promotions an act of corporate philanthropy. To date, only three states require commercial co-ventures to register.
Many states that do not require registration still regulate commercial co-venturers in other ways, such as requiring certain advertising disclosures and contract filing requirements. In addition, some charity watchdogs require certain additional “best practices” to be met with respect to cause-marketing campaigns before they will give their approval to nonprofit organizations involved in such ventures.
Nonetheless, our clients rely on Perlman & Perlman’s extensive knowledge of state fundraising registration and compliance rules, which are unfamiliar to most in-house or corporate counsel. Our attorneys assist clients in developing promotional terms that will comply with all state regulations and best practices; and they also prepare and negotiate commercial co-venturer agreements. Our compliance specialists review contracts as needed, file all required documentation, follow up to ensure all fundraising licenses are obtained, and provide notice of renewal deadlines.
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