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Tuesday, October 03, 2006

Multi State Solicitation Rules

Thaks to Shannon at Public Law Center for the information and link to filing for charitable solicitation in multiple states. Unified Registration Statement Kit

2 comments:

Anonymous said...

I AM CONFUSED BY THE MULTI- STATE FILER PROJECT - MY UNDERSTANDING IS THAT THEY PROVIDE A STANDARDIZED FORM FOR FILING BUT THAT A PNP MUST FILE THIS FORM WITH EVERY STATE IN WHICH IT MEANS TO SOLICITE FUNDS - DOES THIS MEAN THAT IF I HAVE A WEBISTE THAT ACCEPTS VISA, ETC I CAN NOT ACCEPT DONATIONS FROM OUT OF STATE IF I HAVE NOT FILED WITH THAT STATE?????

Shan said...

Hi Keith (and others),

Internet fundraising brings up some tricky issues -- ones that the IRS (or more appropriately Congress) has yet to resolve.

Whether or not you have to register is a question of state law. In other words, each state has its own rules & regulations regarding charitable registration. This means you (or your legal counsel) should look at each state's law and determine whether you should register.

You can look to the Charleston Principles (developed by the National Association of State Charitable Officials) at http://www.nasconet.org/Charleston%20Principles%2C%20Final.pdf

Although they are guidelines (and not law) they embody the principle that merely having a passive "donate now" button on your website is not enough to require registration. Registration thresholds are based on the degree of interactivity of your website and whether you "specifically target persons located in the state for solicitation." In other words, if your organization is located in California and all the information on your website is about what you do in California, highlights giving opportunities for Californians, etc. just because someone from Oklahoma donates via your website, you shouldn't have to register in Oklahoma.

But again, the Charleston principles are just guidelines and not all states have adopted them.

Here is another article that may be helpful: http://www.idealist.org/if/idealist/en/FAQ/QuestionViewer/default?category-id=58&item=24§ion=16&sid=72726438-169-GoYHU

Hope this helps!
Shannon Anderson
Attorney, Public Law Center