Understanding the Charleston Principles and Multi-State Compliance
Online fundraising allows nonprofits to reach donors nationwide, but it also creates multi-state registration obligations that many organizations underestimate.
In the United States, state regulators generally rely on guidance known as the Charleston Principles to determine when internet fundraising triggers charitable solicitation registration requirements.
Understanding how these rules apply is essential for nonprofits that accept online donations, run digital campaigns, or use national fundraising platforms.
If your organization is uncertain where registration is required, Ironwood Registrations can help evaluate your full fundraising footprint and compliance requirements: Contact us
What Are the Charleston Principles?
The Charleston Principles are a set of regulatory guidelines developed by state charity officials to determine when internet-based fundraising activity creates a registration obligation in a particular state.
They are not a single federal law, but they are widely used by state regulators when assessing whether a nonprofit should be registered before soliciting donations.
The core concept is simple:
If your organization’s online fundraising reaches donors in a state in a meaningful way, that state may require registration.
When Online Fundraising Typically Triggers Registration
Registration obligations commonly arise when a nonprofit:
Specifically Targets Residents of a State
Examples include:
- Email campaigns directed to residents in a particular state
- State-specific donation pages
- Geo-targeted advertising
- Event promotion directed to donors in a state
When solicitations are intentionally directed to residents, registration is generally required before fundraising begins.
Related resource: Where Nonprofits Must Register Based on Online Fundraising
Receives Contributions From a State on an Ongoing Basis
Even without targeted outreach, repeated donations from residents of a state may trigger registration expectations.
Factors regulators may consider include:
- Volume or frequency of contributions
- Ongoing donor relationships
- Follow-up solicitations to those donors
A single isolated online donation typically does not create immediate registration obligations, but repeated or sustained activity often does.
Uses Interactive Donation Websites
Most modern nonprofit websites allow donors to contribute directly.
States may view this as solicitation when:
- The site actively encourages contributions
- The organization communicates with donors after the donation
- The site enables ongoing fundraising relationships
Because nearly all nonprofits now operate donation-enabled websites, this is one of the most common drivers of multi-state registration exposure.
When Online Activity Alone May Not Require Registration
Organizations may not need to register in a state solely because:
- Their website is passive or informational
- They receive only isolated, one-time contributions
- There is no ongoing outreach to donors in that jurisdiction
However, once ongoing engagement begins, registration obligations can change quickly.
Why Online Fundraising Creates Multi-State Compliance Risk
Digital fundraising expands donor reach far beyond a nonprofit’s physical location.
As a result:
- A single national email campaign can trigger obligations in dozens of states
- Donor acquisition through online platforms often creates registration exposure faster than expected
- Development teams may be unaware that online tactics have regulatory implications
Many organizations discover gaps only during audits, grant due diligence, or large donor reviews.
How Larger Nonprofits Typically Manage This Risk
Organizations fundraising nationally often:
- Maintain a multi-state registration strategy
- Monitor donor geography
- Track contribution volume by state
- Align registration timing with campaign launches
- Coordinate financial reporting across jurisdictions
Centralized management reduces administrative burden and helps prevent lapses.
If your organization is expanding digital fundraising, Ironwood Registrations can help coordinate your registration strategy: Schedule a consultation
States Still Matter Even If You Have No Physical Presence
A common misconception is that registration is only required where a nonprofit is incorporated or operates programs.
In reality:
- Online fundraising alone can trigger registration
- Donor location—not organizational headquarters—often drives the requirement
- Even fully remote fundraising teams must evaluate multi-state compliance
Related Resources
Explore state-specific charitable solicitation registration requirements
Multi-State Fundraising Compliance Guide for Nonprofits
Initial Filing Timing by State
Need Help Determining Where You Must Register?
If your organization is fundraising across multiple states—or planning to expand online campaigns—it is often more efficient to evaluate the entire registration footprint at once.
Or contact Ironwood Registrations to discuss your current fundraising activity