Charitable solicitation registration
Around forty states and the District of Columbia require charities to register before soliciting donations from their residents. Registration is typically handled by the attorney general or secretary of state and renewed annually, often with a copy of your Form 990. Some states exempt small organizations or certain religious groups.
Register in your home state first. Before soliciting widely online or by mail, review the rules of states where you will actively ask for gifts. The Unified Registration Statement effort and the National Association of State Charity Officials both publish guidance on multistate registration.
Be accurate about what donors are funding
Describe the use of funds truthfully. If you raise money for a specific purpose, those funds are restricted to that purpose unless the donor agrees otherwise. Track restricted gifts separately in your books.
If your exemption application is still pending, say so plainly. Contributions made during a pending application may become deductible if exemption is later recognized retroactively, but you cannot promise that outcome.
Raffles, auctions, and games
Raffles are treated as gambling in most states, and many require a permit or license. Some prohibit them entirely for certain organizations. Check with your state and local authorities before selling a single ticket. Raffle prizes above certain values also carry federal withholding and reporting obligations.
For auctions, provide buyers with the fair market value of each item so they can calculate any deductible portion.
Professional fundraisers
Many states regulate paid solicitors and fundraising counsel and require contracts to be filed. Do not agree to pay anyone a percentage of funds raised without reviewing your state's rules and professional ethics guidance.
Adopt a gift acceptance policy
Decide in advance what you will and will not accept, such as vehicles, real estate, securities, or gifts with conditions attached. A short written policy saves difficult conversations later.
Checklist
- Registered in home state before soliciting
- Multistate registration reviewed
- Restricted gifts tracked separately
- Raffle or gaming permits obtained where required
- Gift acceptance policy adopted
General information, not legal or tax advice. Confirm current requirements with the IRS, your state, or a qualified professional. Updated September 2026.