FAQ

What is a charitable solicitation?

Why are charities required to register?

When should a charity register?

Who has to register?

Do all states require registration for a charitable organization?

Is an Internet web site or email which solicits charitable gifts a charitable solicitation?

Are any charities exempt from registration?

What is a professional solicitor or professional fundraiser?

Are there any disclosure statements required by the charitable organization conducting solicitations?

How does a state become aware of noncompliance?

What penalties may apply for noncompliance?
Various penalties may apply for noncompliance including civil and criminal sanctions. The civil penalties include (i) revocation, cancellation, suspension or denial of registration, (ii) investigation by the appropriate governmental officials, and (iii) levying of fines to charitable organizations from $100 to $25,000. Similar fines are also imposed on individuals with fiduciary responsibility who are willfully non-compliant or fraudulent. Generally, criminal sanctions among the various states for a failure to comply range from a misdemeanor to a felony and may be imposed on officers or trustees who evidenced an intent to defraud or a willful violation of the law.