Charitable solicitation registration (also called “Fundraising Compliance”) is not optional, it’s the law.
41 states require registration and the requirements vary by state – making things complex – which is why most nonprofits partner with a compliance provider to streamline operations so they can focus on their mission.
But, aside from it being a legal mandate and best practice of successful nonprofits, it also carries a wealth of additional benefits that can help your nonprofit grow.
Here are the top 4 reasons you should make sure your nonprofit is registered for charitable solicitations:
1. Donor Trust – The internet has made it easier than ever for donors to investigate organizations prior to giving. The rise of public charity rating websites and databases showcasing compliant and non-compliant nonprofits demands transparency of your organization. It’s not uncommon for donors to ask about your charitable solicitations registration before any kind of engagement.
A great example of being proactive with fundraising compliance and reaping the benefits is our customer Book Trust. In our interview with CEO, Amy Friedman, she talks about leveraging our Fundraising Compliance Solution as part of donor engagement. You can watch a quick clip of the interview here.
2. Public Image – Your reputation is one of your biggest currencies and the way your organization is perceived in the public eye is important. Proactively meeting your state charitable solicitations registration requirements presents an opportunity to demonstrate how your nonprofit is dedicated to protecting its donors and ensuring professional conduct. Not only is this just plain honorable, but it can also be used like a badge of honor, as you can promote this best practice and validation of credibility in your marketing campaigns and differentiate yourself from the crowd.
3. Unlimited Fundraising (and sleeping well at night) – The last thing you want when trying to make your impact is a letter from a state(s) notifying you of non-compliant fundraising due to funds solicited via the “donate” button on your website or the social media campaign you just ran. While online fundraising is amazing in how it allows you to scale, it also likely triggers charitable solicitations registration requirements as it allows you to accept donations from all over the country, and since 41 states require registration, it’s likely you’re tapping into at least one of them, and the penalties for non-compliance are brutal. In addition to online donations, you may have strategic campaigns with different venues and formats that would expand your fundraising avenues and locations. And finally, let’s not forget grants. Charitable solicitation registration is required to apply for most grants and allows you to apply quickly and avoid disqualification. Therefore, investing in a national fundraising compliance plan allows you to scale fundraising wherever and whenever you want and give you and your fundraisers peace of mind so you can sleep well at night.
4. Operate Legally and Efficiently – Charitable solicitation registration requirements are the law should be a priority for your Board, and undoubtedly a best practice for successful nonprofit organizations. Additionally, they’ve been around for years and are here to stay, so hoping and waiting for laws to change puts your nonprofit’s image and success in jeopardy.
Virtually every avenue of soliciting funds is covered under these requirements which means if your nonprofit is fundraising in any way, you’ll need to get fundraising compliant. Since registration is generally required prior to soliciting funds, the best results are always achieved by being proactive to avoid penalties.
Thankfully, this doesn’t have to be a painful process. Our Compliance Specialists can assess your organization’s fundraising footprint and help you create the best fundraising compliance plan for your current situation and future goals.
Not only are we dedicated to making sure you have the best fundraising compliance plan for your nonprofit, but our online platform saves you money, time and headaches….not to mention a 100% approval guarantee! Contact us today for more information or to schedule a FREE consult with a Compliance Specialist and get started on the best path to unlimited fundraising without the worries or stress of government obstacles.
