When Should Nonprofits Reassess Their Charitable Solicitation Registration

Charitable solicitation registration is not a set-it-and-forget-it exercise. Over time, organizations can accumulate registrations, exemptions, filing histories, and assumptions that no longer reflect how they fundraise today. 

A periodic review can help surface unresolved issues, outdated records, potential exemptions, and areas where the organization’s registration footprint deserves a fresh look. It can also help confirm whether upcoming deadlines are being tracked, whether the organization has access to necessary records and state accounts, and whether its current compliance process continues to meet its needs.  

Ongoing assessments can help organizations separate common assumptions from their actual registration obligations. For example, accepting online donations does not necessarily mean an organization must register in every state, but targeted digital solicitation and other fundraising activities may create requirements in particular jurisdictions. 

The following steps can help organizations assess their charitable registration programs and identify areas that may require attention. 

Know When It’s Time to Reassess Your Charitable Registration Footprint

Begin by identifying the states where the organization is currently registered, exempt, pending, delinquent, or not registered. This review should consider the organization’s present fundraising activities rather than relying only on its historical list of registrations. 

An organization’s fundraising footprint can change over time. New campaigns, online solicitation, grant applications, fundraising events, or relationships with professional fundraisers may affect where registration is required. 

At the same time, an organization may remain registered in jurisdictions where it no longer solicits, or where an exemption may now apply. The objective is to establish an accurate baseline that reflects the organization’s current activities and obligations. 

Review the Information Supporting Your Current Registration Program

A review of the registration program should include the documents and information commonly needed for registrations, renewals, and exemption requests. These items include: 

• Articles of Incorporation and Bylaws 

• IRS determination letter 

• Most recent Form 990 

• Most recent audited financial statements, if applicable 

• Fundraising contracts 

• Recent correspondence from state charity regulators 

• Information about officers, directors, and other responsible individuals 

• Details concerning fundraising and solicitation activities 

• Accreditation or other documentation supporting potential exemptions 

Missing documents should not delay a review. Identifying what is available, what is outdated, and what still needs to be collected is an important part of the process.

Identify Gaps in Your Registration History and Records

Organizations should maintain access to a complete copy of their charitable registration records, regardless of whether filings are handled internally or by a third party. This may include: 

• Copies of recent registrations and renewal filings 

• State correspondence 

• Registration numbers 

• Renewal or access codes 

• Organization-specific usernames and passwords 

• Copies of exemption applications or determinations 

• Records concerning pending or unresolved filings 

If records are stored in a third party’s online portal, organizations should understand how those materials can be accessed, downloaded, and retained. Maintaining copies can help preserve compliance history and reduce its dependence on a single system or contact. 

When records are incomplete, an experienced provider should be capable of independently researching and reconstructing much of an organization’s state registration history. 

Establish a Current State-by-State Compliance Baseline

A state-by-state assessment can help establish a more accurate picture of current charitable registration status instead of relying solely on records from a previous provider. 

This review can help determine where an organization is: 

• Registered and in good standing 

• Exempt from registration 

• Approaching a renewal deadline 

• Pending with a state agency 

• Delinquent or missing a filing 

• Registered unnecessarily 

• Not registered in a state where registration may be required 

This process can be particularly valuable when an organization is uncertain about its complete registration history or has been working with the same provider for many years. 

The objective is not simply to confirm that a list of registrations exists, but to establish an independently verified compliance baseline. 

Revisit Registration and Exemption Assumptions

Exemption eligibility also deserves a closer look as fundraising activities and circumstances change. 

Many states provide exemptions for certain categories of organizations, although the eligibility requirements and procedures vary considerably from state to state. Depending on the jurisdiction and organization, exemptions may be available to certain educational institutions, religious organizations, hospitals and healthcare organizations, membership organizations, and organizations that fall below specified fundraising thresholds. 

For example, colleges, universities, and their related organizations may qualify for educational institution exemptions in some jurisdictions. 

A state-by-state exemption analysis can also help clarify where registration is necessary while taking advantage of legitimate exemptions where available. This may reduce administrative work as well as help avoid unnecessary state filing and professional service fees. 

Clarify Responsibilities, Access, and Authorizations

Responsibilities should be clear, including who is responsible for monitoring deadlines, preparing filings, responding to state correspondence, and maintaining login credentials and records. These responsibilities should be clear whether the work is handled internally or with outside assistance. 

 If a third party assists with filings, a Power of Attorney (POA) may allow that party to communicate with state agencies and handle certain matters on the organization’s behalf. Requirements and permitted uses vary by jurisdiction. 

Use Major Transitions as an Opportunity for a Broader Review

After reviewing its registrations, exemptions, records, and filing responsibilities, an organization may determine that its current process no longer meets its needs. In some cases, that assessment may lead it to consider changing charitable registration service providers. 

An effective transition meeting might cover: 

• Current state registrations 

• Applicable exemptions 

• Upcoming renewal deadlines 

• Delinquent or outstanding filings 

• Information received from the prior provider 

• Results of the independent state-by-state review 

• Missing documents or information 

• Filing responsibilities and communication procedures going forward 

 This creates an opportunity to clarify the current compliance position before responsibilities shift from one provider to another. 

Keep Your Charitable Registration Program Current

Organizations do not need to wait for a major problem or provider change to take a closer look at their registrations. Reassessment can uncover missed filings, unnecessary registrations, overlooked exemptions, and gaps in organizational records. 

Lastly, not every historical filing, document, password, or access credential is needed before beginning. By reviewing the program periodically, they can develop a clearer picture of their obligations and make informed decisions about registrations, exemptions, filing procedures, and service needs. 

_{This article is provided for informational purposes only and should not be considered, or relied upon, as legal advice.}