Nonprofit Risk Management 

Tip of the Month - May 2008

fundraise legally - have you renewed your nonprofit's charitable solicitation registration

Most states require nonprofits to file an annual registration to renew the nonprofit’s eligibility for charitable solicitation activities in that state. Many nonprofits engage independent CPAs to complete the forms and take care of the filing, but many others complete the forms themselves and submit them annually, along with any required filing fees. Don’t make the mistake of forgetting to renew your nonprofit’s registration! If your nonprofit has not registered it may be ineligible to receive certain funding, such as government grants and private foundation funding. Also, there may be penalties for failure to file or back-filing fees to pay for missed years’ registrations. Keep a file with all the nonprofit’s annual registrations on hand so that you can verify that the annual filings were made, and make sure that significant changes to governing documents or the nonprofit’s business operations, such as bylaw amendments and name/address changes, are also filed with the state Attorney General’s office or appropriate state office of that regulates charitable solicitations. Planning special events that entail soliciting financial support, such as for a conference that is being planned in another state, may require multiple state filings. Remember too that having a “Click Here to Donate” button on your web site can render a nonprofit subject to multiple states’ requirements to register for charitable solicitation. 

For various states’ filing requirements at a glance go to the web site of the multi-state filing project, http://www.multistatefiling.org.  

About the Nonprofit Risk Management Center:  The Nonprofit Risk Management Center (NRMC) was established in 1990 to provide assistance and resources for community-serving nonprofit organizations. As a nonprofit, the Center is uniquely positioned to both understand and respond to questions with practical, affordable suggestions for controlling risks that threaten a nonprofit’s ability to accomplish its mission.

NRMC's mission is to help nonprofits cope with uncertainty. We offer a wide range of services (from technical assistance to software to training and consulting help) on a vast array of risk management topics (from employment practices to insurance purchasing to internal controls and preventing child abuse). We do not sell insurance or endorse organizations that do. Look to the Nonprofit Risk Management Center’s regional meetings, monthly Webinars, and online Risk Management Classroom for additional training at www.nonprofitrisk.org.

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