At Altruic Advisors, one of the many nonprofit accounting services that we offer is the filing of charitable solicitation registrations. In the United States, different states have different laws regulating the solicitation of funds for charitable purposes. These laws typically require nonprofit organizations (with some exceptions) to register with a state agency before soliciting donations or contributions from the residents of that state. Currently, 37 states and Washington D.C. require charitable solicitation registration and renewals.
Some organizations are only required to register within their home state; other organizations must file in multiple states, depending on where and how they engage in fundraising activities. Since much of the information required on state charitable registration filings is the same as the information on the organization’s Form 990, many nonprofits prefer to outsource this task to their accountant. Other organizations choose to handle the process internally.
While the registration forms themselves are usually fairly straightforward, the project management of these solicitations can easily become overwhelming if you don’t have a good plan in place. Especially if your organization is registered in more than one state, it can be difficult to keep track of the different due dates, forms, and requirements for each filing location. If your organization chooses to handle your charitable solicitation registrations internally, here are a few tips and tricks to help make the process easier.
Make a List
Among our accountants at Altruic Advisors, there is a clear consensus that managing due dates is always the trickiest part of this process, especially for organizations that file in multiple states. When you’re dealing with a large number of filings, it’s easy for one to slip through the cracks if you don’t have a strong plan in place. The key is to create a “master” due date list and be vigilant and consistent about updating it. As soon as you finish one filing, make it a habit to immediately schedule the due date for the following year. If you learn that your organization might be required to register in a new state, put that deadline on your list, even if you don’t have all the details yet.
Check For Updates
Every state has their own unique registration system, which seem to be ever-changing and evolving. Before beginning an initial registration or renewal, check the state’s website for current requirements and forms. Sometimes states will introduce a new online filing option or tweak their registration forms. The last thing you want is to get halfway through your registration before you realize that you’re using an outdated form! Always check for updates before you begin.
Keep Good Notes
When you’re working on a long list of filings for different states, it can be easy to lose track of the status of a particular filing. Maybe you still need to gather some additional information, or you’re waiting on a signature before submitting the final form. Whatever the case, leave yourself detailed notes to help prevent delays or miscommunications and to save time retracing your steps when you’re ready to finalize the registration.
Have an Exit Plan
If something changes at your organization and you’re no longer planning to solicit contributions in a state, you might not be off the filing hook just yet. Many states require nonprofit organizations to submit a final form or written notification indicating that their solicitation activities in the state will be ending. If you don’t follow the correct exit procedures, the state may apply late fees or other penalties. Be sure to check with each state you’re registered in to confirm any final steps that might be necessary.
