Has Your Nonprofit Re-Registered in States Where It Solicits Funds?

It’s a problem that lawyers serving nonprofit organizations serving nonprofits see all too often: The nonprofit gets as far as figuring out which states it has been or will be soliciting charitable contributions in, takes the appropriate steps to register in those states, and then forgets that it’s in compliance only for the next 364 days. (For background on the basic requirements, see attorney Stephen Fishman’s article, “Fundraising Registration: Does Your Nonprofit Need to Register?“)

A nonprofit has to remember to re-register in every state where it will be fundraising. (It also, of course, needs to keep an eye on whether it has started raising money in states where it has never registered in the first place). All too often, however, the people who took care of registrations the first time around have left, or institutional memory otherwise fails — and the problem goes unnoticed until the nonprofit receives a “cease and desist” letter from the state in question.

This isn’t necessarily an end-of-year problem — the clock starts ticking whenever you first registered, which may have happened at different times for different states. Nevertheless, with mere months until you have to submit your next Form 990 to the IRS (in which you’ll probably need to name the states where you must register and have indeed registered, depending on which version of the form you fill out), be smart and doublecheck now on your group’s re-registration obligations.

Nolo’s book “Nonprofit Fundraising Registration: The 50-State Guide” can help with this process.

Or, you might want to consult an experienced nonprofit attorney with questions.