You’ve gathered your Board, written your by-laws, and received your 501c3 status from the IRS. Congrats! Perhaps you’ve been growing steadily in one state and you’re ready to expand to another. Fabulous! But are all these fundraising activities in compliance with the law? Requirements vary from state to state. Here we’ll offer an overview of this subject, and provide some resources to get you started on researching your organization’s specific obligations.

NOTE: This document is not intended to offer legal advice. You should consult a legal or tax professional familiar with nonprofit regulations in your location for advice. State requirements can be very complex, so it is important to do your research and seek appropriate professional advice.

Most states require some form of registration with the state’s Attorney General Office from a nonprofit organization before any solicitation of donations. These requirements might include filing proper paperwork, payment of fees, and revenue reporting. Registration might require a one- time fee or an annual renewal or they might only be required if you establish office space in the state. And requirements vary from state to state.

Many states also have exemptions for certain organizations – which may be based on religious affiliation, being an educational institution, gross revenue, or other factors. Some of these exemptions are automatic while others require filing for an exemption.

With a good deal of individual fundraising happening online, it is important to know exactly what your organization must do to ensure that all parties involved are protected from liability. If you simply have a donate button on your website and are not able to control who clicks to donate, this may not be considered solicitation – and therefore, may not require registration. If, however, you act further to drive donations to the website in a geographic location, for instance with targeted google ads – you may be expected to first register with that state. It’s important to understand your state’s requirments in detail.

Be aware that Raffles, Bingo, and similar fundraising activites are also often regulated by the states, generally under the laws on gambling. For instance, in California, private lotteries, such as bingo and raffles, constitute illegal gambling. However, there are exceptions for tax-exempt organizations, enabling them to raise charitable funds through such methods, as long as they meet restrictions on where the games are conducted, the prize amounts, and other criteria.

You can find useful information on the websites of the http://www.irs.gov/charities-non-profits/charitable-organizations/charitable-solicitation-initial-state-registration and The National Council of Nonprofits.

Numerous legal and consultancy firms can be hired to help you prepare these registrations. An an internet search for “Nonprofit Fundraising Requirements by State” or “Charitable Solicitation Registration Requirements” is the place to start.

If you plan to work in more than one state consistently, you might consider purchasing an annual subscription like the state-by-state digital guide offered by do-it-yourself legal advice website Nolo.

Be sure to consult your organization’s legal and financial advisors as you research your legal obligations surounding fundraising.