Nonprofit Fundraising Compliance and Charitable Registration, An Interview 

What this is: In this interview-style Q&A, Cogency Global poses key questions gathered from nonprofits nationwide, and Ron Barrett, Vice President of Nonprofit Services, answers by fusing insights from his articles and public commentary. 

What this means: If you are operating a nationwide nonprofit, you’ll gather key learnings from this article that can help you efficiently handle regulatory compliance matters so you can spend more time focused on your mission.

Cogency Global: Ron, can you share your background and areas of expertise? 

Ron Barrett: I lead Nonprofit Services at Cogency Global, where I developed a comprehensive suite of services for nonprofits spanning registered agent and corporate filings, charitable solicitation registrations and renewals, charitable sales promotions and sales tax exemption filings. I’m a Standards for Excellence Licensed Consultant who has authored numerous articles and co-authored Nonprofit Fundraising Registration: Nolo’s 50-State Digital Guide, and I regularly present on fundraising compliance across the country. My work centers on helping organizations build compliant campaigns so they can fundraise confidently and sustainably. 

Cogency Global: What’s the most common misconception about charitable solicitation registration? 

Ron Barrett: Three misconceptions come up repeatedly: that small donations from “donate-now” buttons exempt organizations from registration; that registering in the home state alone is sufficient; and that registrations only apply to charities (501(c)(3)s). States base registration requirements on solicitation activities across state lines, and most include digital campaigns and email appeals; social welfare organizations (501(c)(4)s) often must register, too.  Noncompliance can lead to penalties, forced cessation of solicitations and reputational harm, so it’s crucial to verify state-by-state rules before launching fundraising campaigns. 

Cogency Global: How many states require charitable solicitation registration and what happens if you miss a filing? 

Ron Barrett: Thirty-six states, plus the District of Columbia, broadly require some form of charitable registration before solicitation, with ongoing renewal obligations thereafter. For certain types of charities (e.g. veterans’ organizations) that use the services of professional fundraisers, registration can be required in up to forty states. These filings often require organizational documents, financials and disclosures about fundraising activities and relationships with outside fundraisers. Failure to register or renew can trigger late fees, fines, investigations and orders to cease fundraising, which is particularly risky if a campaign spans multiple jurisdictions. Due dates can vary and are often extended, so tracking renewals across all relevant states is a core compliance function. 

Cogency Global: What should social welfare organizations (501(c)(4)s) consider? 

Ron Barrett: Many 501(c)(4) organizations must register for charitable solicitation in their home state and in any other states where they solicit. The obligation is activity-based: if you’re asking for support across state lines, registration is frequently required, though there are several states that allow for exemptions from registration by social welfare organizations. A key factor triggering the need to register is the purpose of the solicitation – if it is for a charitable purpose, as defined by a state’s statute, then registration is likely required.  Treat your solicitation footprint as the trigger, not just your tax-exempt status. 

Cogency Global: How do professional fundraisers and co-ventures change the compliance picture? 

Ron Barrett: States regulate professional fundraisers and commercial co-ventures with heightened scrutiny. If you hire a professional solicitor or fundraising consulting firm, they may need to register, obtain bonds and/or file campaign reports; your charity may face extra disclosures, too.  For charitable sales promotions (commercial co-ventures), you will want written agreements spelling out the donation per unit sold, campaign dates and reporting obligations, alongside any state filings. The goal is clarity and transparency for the consumer, always ensure the promotion complies with state laws and aligns with your mission rather than letting marketing and branding alone drive decisions. 

Cogency Global: How did the growth of digital fundraising during and after the pandemic affect compliance? 

Ron Barrett: Digital campaigns widened solicitation footprints overnight, often pulling nonprofits into states’ regulatory regimes. Email blasts, social media appeals, livestreams and crowdfunding can each trigger multi-state registration needs, depending on how broadly you target or receive donations. California’s AB488 expanded oversight of charitable fundraisers operating online, signaling a trend of greater supervision of digital solicitations and platform fundraisers. Nonprofits should map their digital reach to state registration requirements and update their compliance footprints accordingly. 

Cogency Global: What should nonprofits know about raffles, sweepstakes, and charitable gaming? 

Ron Barrett: Raffles, sweepstakes, bingo and casino nights are subject to a complex web of laws that may include registration, permits, prize disclosures and restrictions by jurisdiction.  Many states treat these activities differently than general charitable solicitation, with added local rules that can surprise organizations.  It’s vital to review the legal requirements when considering charitable gaming, especially when offering prizes or running chance-based promotions across state lines. 

Cogency Global: What are the top FAQs you hear from nonprofits? 

Ron Barrett: The most frequent questions include whether a donate-now button triggers registration; if volunteer-run campaigns are exempt; whether event-specific fundraising changes obligations; when and where corporate filings and registered agents are needed; and how reviewed or audited financials factor into filings. I emphasize “right-sizing” solicitation registrations, monitoring state thresholds, confirming exemptions from registration, ensuring extensions and renewals are filed timely, and documenting relationships with fundraisers or co-venturers. A disciplined approach to registrations, renewals and transparent disclosures protects donors, fundraisers, and nonprofit organizations. 

Cogency Global: How can nonprofits deal with shifting deadlines and requirements? 

Ron Barrett: Centralize all registrations, renewals, extensions and reporting deadlines in one system and assign accountability. Because due dates can change and are often determined by an organization’s year-end, build in buffer periods prior to deadlines and conduct post-filing audits to ensure no corporate annual reports or charitable renewals are missed. Synchronize corporate compliance (annual reports) with charitable filings to reduce the risk of missed deadlines, and schedule periodic reviews to capture regulatory updates from states. 

Cogency Global: What’s on the checklist for starting a compliant nonprofit? 

Ron Barrett: Begin with mission clarity, board formation, bylaws and articles of incorporation.  Then move to IRS tax exemption, state corporate qualifications, charitable registration in your home state and, if you will solicit broadly, multi-state registrations. Plan for charitable registrations, sales tax exemptions where applicable and a compliance calendar that aligns fundraising activities with required filings. Building these layers early prevents costly retroactive fixes and strengthens trust with donors and fundraisers. 

Cogency Global: What is the one thing you want nonprofit leaders to do before they launch a fundraising campaign? 

Ron Barrett: Map your campaign’s solicitation footprint, digital and physical, against state registration requirements, including corporate qualifications and charitable registrations. Confirm that required disclosures are current and accurate and make sure contracts with fundraisers are compliant with state laws.  A few hours of compliance planning can spare months of remediation and keep the focus where it belongs: your mission and your impact.