As fundraising for nonprofit organizations increasingly becomes digitally based, entities should take steps to review regulatory requirements in all states.
States regulate fundraising, whether conducted in person, online or through social media. Charities should review registrations requirements related to:
- Charities that fundraise
- Professionals or advisors that fundraise on behalf of charities
- Regulations pertaining to business or charities that sell products or services, with the intention of donating to charity, known as cause related marketing or commercial co-ventures.
Digital fundraising presents several issues for charity, including:
- Substantiation digitally
- Donor privacy issues
- Charity consent and protection issues
All but nine states require various registrations, including Rhode Island and Massachusetts. Initial registrations are required, depending on the activity, with annual reporting subsequent to the registration.
Depending on your activity, the team at Partridge Snow & Hahn LLP will best advise as to registration requirements, to protect charitable assets, prevent fines and to allow you to do what you do best: executing your mission.
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