CPAs preparing Form 990 often need to determine whether nonprofit clients may have charitable solicitation registration obligations in multiple states.
Form 990 includes questions intended to help identify whether a nonprofit organization may have charitable solicitation registration obligations in one or more states. These questions can be challenging to answer because charitable solicitation laws vary significantly by jurisdiction and the triggers for registration are not always obvious from an organization’s activities.
For CPAs preparing Form 990, understanding the purpose of these questions can help ensure the return is completed accurately and that potential compliance issues are recognized early.
The following overview shows where nonprofits typically must register before soliciting charitable contributions.
Why These Questions Exist
Most states regulate charitable solicitations. When a nonprofit organization solicits donations from residents of a state, that state may require the organization to register with a charity regulator before or while fundraising occurs.
State regulators often review Form 990 filings to identify organizations that appear to be soliciting donations in their jurisdictions without being registered. As a result, the Form 990 questions regarding fundraising states and registrations can have practical compliance implications.
The Key Form 990 Questions
Two related areas of Form 990 commonly raise questions for accountants.
Form 990 Part VI Section C Line 17
List the states with which a copy of Form 990 is required to be filed.
Schedule G Part I Line 3
List all states in which the organization is registered or licensed to solicit contributions or has been notified it is exempt from registration or licensing.
Although these questions appear straightforward, answering them requires understanding both:
- where the organization is soliciting contributions, and
- the registration requirements in each state.
Determining Where a Nonprofit May Be Soliciting
A common misunderstanding is that charitable solicitation occurs only when a nonprofit conducts an in-person fundraising campaign in another state. In practice, solicitation can occur in a variety of ways.
Examples include:
- Direct mail fundraising campaigns
- Email appeals
- Online donation requests on a website
- Social media fundraising campaigns
- Telephone solicitations
- Events targeting donors across state lines
Because online fundraising platforms and digital communications often reach donors nationwide, organizations may be soliciting in multiple states even when their staff and operations are located in only one jurisdiction.
Passive Donations vs. Active Solicitation
Another factor that complicates these questions is the distinction between passive donations and active solicitation.
Many states recognize that nonprofits may occasionally receive unsolicited donations from out-of-state donors. In those situations, registration may not always be required.
However, when organizations actively request donations from residents of another state, that activity may trigger charitable solicitation registration requirements in that jurisdiction.
States Requiring Charitable Solicitation Registration
For a typical 501(c)(3) organization soliciting donations nationwide, registration may be required in the following jurisdictions:
• Alabama
• Alaska
• Arkansas
• California
• Colorado
• Connecticut
• District of Columbia
• Florida
• Georgia
• Hawaii
• Illinois
• Kansas
• Kentucky
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• Tennessee
• Virginia
• Washington
• West Virginia
• Wisconsin
Additional requirements may apply in certain circumstances.
Examples include:
- Louisiana, when a nonprofit hires a professional solicitor
- Arizona, for certain veterans organizations
- Texas, for organizations soliciting for law enforcement, public safety, or veterans organizations
States Where Form 990 Must Be Filed
More than 40 states regulate charitable solicitations, but not all require a copy of Form 990 to be filed as part of the annual registration process.
States that commonly require Form 990 filing include:
• Alabama
• Arkansas
• California
• Florida
• Georgia
• Hawaii
• Illinois
• Kansas
• Kentucky
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• Tennessee
• Virginia
• West Virginia
• Wisconsin
Organizations that solicit donations nationwide will often need to register in most or all of these states. However, organizations that fundraise only in certain jurisdictions may have more limited registration requirements.
Exemptions From Registration
Some organizations may qualify for exemptions from registration in certain states and therefore may not need to file Form 990 with those states.
Common exemptions include:
• Religious organizations
• Educational institutions
• Private foundations
• Membership organizations
• Charities below certain revenue thresholds
Some exemptions apply automatically, while others require an organization to apply for and receive approval from the state regulator.
If an organization applies for an exemption and receives approval from the state (for example, in Missouri), that state should still be listed as a jurisdiction where the organization is registered or exempt.
If the organization simply determines internally that it qualifies for an exemption without filing paperwork, that state generally should not be listed as a registered or exempt jurisdiction.
Common Indicators That Registration May Be Required
Certain activities frequently trigger registration requirements across multiple jurisdictions.
These include:
• National fundraising campaigns
• Online donation platforms
• Direct mail campaigns
• Social media fundraising
• Professional fundraising firms
• Donor bases across multiple states
Organizations engaged in these activities may need to review their charitable solicitation registrations periodically.
CPA Checklist: Questions to Ask Your Nonprofit Clients
Before answering the charitable solicitation questions on Form 990, consider asking your nonprofit client:
• Does the organization solicit donations outside its home state?
• Does the organization accept online donations through its website or fundraising platforms?
• Are email or direct mail fundraising campaigns sent nationwide?
• Does the organization run social media fundraising appeals?
• Has the organization hired professional fundraisers or fundraising counsel?
• Are donors located in multiple states?
• Has the organization recently expanded fundraising activities?
If the answer to several of these questions is yes, the organization may benefit from reviewing its charitable solicitation registrations.
Download the CPA Multi-State Registration Checklist
CPAs preparing Form 990 often need to review nonprofit fundraising activities to determine whether charitable solicitation registrations may be required in multiple states.
Download the CPA Multi-State Charitable Solicitation Registration Review Checklist for a printable reference you can use when reviewing nonprofit fundraising activities.
Download the CPA Checklist (PDF)
Frequently Asked Questions
Do all nonprofits need to register in multiple states?
No. Registration requirements depend on where the organization solicits donations and whether exemptions apply.
Does receiving occasional out-of-state donations require registration?
Not always. Many states distinguish between passive donations and active solicitation.
Do online donations trigger multi-state registration requirements?
Online fundraising can potentially reach donors nationwide, which may create registration obligations depending on how donations are solicited.
Do CPAs need to determine registration requirements themselves?
CPAs often identify potential issues while preparing Form 990 and may recommend a compliance review when multi-state fundraising is involved.
When do CPAs typically recommend a registration review to their clients?
If several of the checklist indicators apply, nonprofits often benefit from reviewing their charitable solicitation registrations.
Request a Multi-State Registration Status Review
If your nonprofit client may be fundraising across multiple states, it may be helpful to review its charitable solicitation registration status.
Ironwood Registrations provides independent reviews of publicly available state registration records to help identify:
• potential registration gaps
• upcoming renewal deadlines
• states where registration requirements may apply
Request a Registration Status Review
About Ironwood Registrations
Ironwood Registrations specializes in charitable solicitation registrations and multi-state compliance for nonprofit organizations. We work with nonprofits and their advisors to review registration requirements and manage filings across multiple jurisdictions.