Part of the Multi-State Fundraising Compliance Series. It is design to provide practical guidance on charitable solicitation registration and multi-state fundraising compliance.
Video Overview:
Many nonprofits rely on outside professionals to support fundraising efforts—whether through campaign management, donor outreach, or digital fundraising strategies. But hiring a professional fundraiser can also change an organization’s compliance obligations under charitable solicitation laws.
In this video, we explain how professional fundraisers are regulated, what registration requirements apply to them, and how working with these professionals can impact a nonprofit’s own registration and reporting obligations. We also cover how these relationships can affect exemption eligibility in certain states.
Understanding these requirements helps nonprofits plan fundraising campaigns effectively while maintaining compliance across jurisdictions.
This video explains how working with a professional fundraiser can affect charitable solicitation registration requirements for nonprofits.
This video is part of the Multi-State Fundraising Compliance Series, which explains charitable solicitation registration and nonprofit fundraising compliance requirements across the United States.
Key Topics Covered
- What a professional fundraiser is
- Types of services professional fundraisers provide
- State registration requirements for professional fundraisers
- How professional fundraisers affect nonprofit registration filings
- Disclosure requirements related to fundraising professionals
- Contract filing requirements with regulators
- Impact on small charity exemption eligibility
- Multi-state campaign implications
- Coordination between nonprofits and fundraising professionals
- Reporting fundraising expenses and activities
- Compliance risks when using third-party fundraisers
- Best practices for managing professional fundraiser relationships
Who This Video Is For
- Executive directors launching fundraising expansion
- Development teams building online campaigns
- Finance and compliance staff overseeing registrations
- Boards evaluating regulatory risk
- Organizations expanding fundraising beyond their home state
Video Summary
Professional fundraisers play a significant role in helping nonprofits expand their fundraising capabilities. These individuals or firms may assist with campaign strategy, donor outreach, direct mail, digital fundraising, telemarketing, and event coordination. Because these activities involve soliciting donations from the public, they are often regulated under state charitable solicitation laws.
In many states, professional fundraisers are required to register with regulators before conducting fundraising activities. This process may include submitting registration forms, providing background information, filing contracts with nonprofit clients, and maintaining bonds or other financial assurances. These requirements are designed to promote transparency and accountability in fundraising practices.
When a nonprofit hires a professional fundraiser, the organization’s own compliance obligations may also expand. Some states require nonprofits to disclose the use of professional fundraisers in their registration filings, submit copies of fundraising contracts, and report expenses associated with professional services. These requirements help regulators understand how fundraising campaigns are structured and managed.
The use of a professional fundraiser can also impact exemption eligibility. In certain states, small charity exemptions apply only when fundraising is conducted primarily by volunteers. Hiring a professional fundraiser may disqualify an organization from these exemptions, requiring it to register where it may not have needed to previously.
Contract filing requirements are another key component of compliance. Many states require nonprofits to submit copies of agreements with professional fundraisers. These contracts typically outline the services provided, compensation structure, campaign duration, and how donations will be handled. Regulators may review these agreements to ensure transparency and proper use of funds.
Professional fundraisers are often involved in large, multi-state campaigns. These may include national direct mail initiatives, digital fundraising efforts, telemarketing campaigns, or coordinated events. When fundraising activities reach donors across multiple states, both the nonprofit and the fundraiser may be subject to registration requirements in those jurisdictions.
Because compliance responsibilities may be shared, coordination between nonprofits and professional fundraisers is essential. This includes confirming that the fundraiser is properly registered, ensuring contracts are filed where required, including necessary disclosures in solicitations, and reporting fundraising activities accurately.
Ultimately, while professional fundraisers can significantly enhance fundraising capacity, they also introduce additional compliance considerations. By understanding these requirements and planning accordingly, nonprofits can engage fundraising professionals effectively while maintaining compliance with state regulations.
Unsure whether your nonprofit needs to register before fundraising in other states?
We help nonprofits evaluate requirements across all states.
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About the Multi-State Fundraising Compliance Series
The Multi-State Fundraising Compliance Series is an educational video series explaining charitable solicitation registration, multi-state fundraising compliance, and related nonprofit regulatory requirements. Each video addresses a specific compliance question commonly faced by nonprofit executives, development teams, and finance leaders.
Full Video Transcript
FAQs: Professional Fundraisers and Registration Requirements
What is a professional fundraiser?
A professional fundraiser is a person or company paid to assist with charitable fundraising activities.
Do professional fundraisers need to register with states?
In many states, yes. They must register before conducting fundraising activities.
How does hiring a professional fundraiser affect a nonprofit’s compliance?
It may require additional disclosures, contract filings, and reporting obligations.
Do nonprofits need to disclose the use of professional fundraisers?
Often, yes. Some states require disclosure in registration or renewal filings.
Can using a professional fundraiser affect exemption status?
Yes. In some states, it may disqualify a nonprofit from certain exemptions.
Are contracts with fundraisers required to be filed?
In many states, yes. Contracts may need to be submitted to regulators.
Do professional fundraisers affect multi-state registration requirements?
They can. Campaigns conducted across multiple states may require registration in those jurisdictions.
Who is responsible for compliance—the nonprofit or the fundraiser?
Both may have responsibilities, depending on the state and activity.
How can nonprofits manage compliance when working with fundraisers?
By coordinating responsibilities, verifying registrations, and reviewing state requirements in advance.
Working with a professional fundraiser and unsure about compliance requirements?
Ironwood Registrations can help you evaluate your fundraising arrangements and ensure all requirements are met.
Related Compliance Videos
- What Is Charitable Solicitation Registration?
- Which States Require Charitable Solicitation Registration?
- Charitable Solicitation Registration Explained for Nonprofits
- Do Small Nonprofits Need to Register in Every State?
Related Compliance Resources
- Where Nonprofits Must Register
- How Charitable Solicitation Works
- Multi-State Charitable Solicitation Registration Guide
Need Help Evaluating Your Registration Requirements?
If your organization is evaluating fundraising expansion or navigating multi-state registration requirements, you may schedule a consultation to discuss your situation.