What Nonprofits Need to Know When Seeking Foundation and Government Funding
Many nonprofits assume charitable solicitation registration applies only to traditional fundraising activities such as direct mail or online donations. In practice, grant activity frequently intersects with registration requirements, particularly for organizations seeking funding across multiple states.
This page explains how charitable solicitation registration relates to grants, why compliance issues often surface during grant reviews, and how nonprofits can reduce risk when pursuing institutional funding.
If your organization seeks grants nationally and wants to confirm its registration posture, Ironwood Registrations can help evaluate your compliance footprint: contact us
Do Grants Count as Charitable Solicitation?
In many states, the answer is yes—sometimes.
While grant activity differs from public fundraising, registration requirements may apply when:
- A nonprofit requests funding from foundations or institutions located in another state
- Grant outreach involves ongoing solicitation, not a one-time request
- The organization maintains a fundraising presence in the funder’s state
- Grantmaking is part of a broader national fundraising strategy
States focus on whether an organization is soliciting contributions from their residents, not solely on whether donations come from the general public.
Why Grant Reviews Often Surface Registration Issues
Registration gaps frequently come to light during:
- Foundation due diligence reviews
- Large grant applications
- Multi-year funding renewals
- Fiscal sponsorship evaluations
- Audit or compliance questionnaires
Many funders now request confirmation that an organization is properly registered where required—or that it has documented why registration is not required.
Common Misconceptions About Grants and Registration
“Grants don’t count as solicitation.”
In some states, this may be true for limited or isolated grant activity such as government grants. In other state, ongoing grant outreach may be treated as solicitation.
“Foundations don’t care about registration.”
Many foundations increasingly request proof of registration or exemption status as part of governance and risk reviews.
“We only apply for grants occasionally.”
Even infrequent grant outreach can trigger questions if the organization is otherwise fundraising nationally or maintains relationships with multiple out-of-state funders.
Private Foundations vs. Public Funders
Registration considerations may differ depending on the source of funding:
- Private foundations: Often conduct their own compliance reviews and may request registration confirmation.
- Community foundations: Frequently operate within state regulatory frameworks and may expect registration compliance.
- Government grants: May not require registration for solicitation purposes but often trigger broader compliance reviews.
Understanding how grant activity fits into your overall fundraising footprint is essential.
How Grant Activity Interacts With Online Fundraising
Grant-seeking organizations often also:
- Accept online donations
- Run email or digital campaigns
- Maintain national donor lists
In these cases, grant outreach is rarely evaluated in isolation. Regulators and funders typically assess the entire fundraising program, not just grant requests.
Best Practices for Grant-Seeking Nonprofits
Organizations that pursue funding across multiple states typically:
- Confirm where registration is required before submitting major grant applications
- Maintain documentation supporting exemption or non-registration decisions
- Coordinate registration and renewal timing with grant cycles
- Ensure financial reporting aligns with state thresholds
- Prepare compliance documentation for funder review
This becomes especially important for organizations approaching or exceeding ~$500,000 in annual contributions.
When Grant Activity Signals the Need for Centralized Compliance
Centralized compliance management is often appropriate when an organization:
- Applies for grants in multiple states
- Maintains ongoing relationships with out-of-state funders
- Has recurring grant cycles
- Is subject to audits or enhanced due diligence
- Combines grant funding with national fundraising campaigns
At this stage, registration compliance is best managed as part of a coordinated multi-state strategy rather than on a grant-by-grant basis.
Multi-state compliance overview
How Ironwood Registrations Helps Grant-Seeking Nonprofits
Ironwood Registrations supports nonprofits by:
- Determining where registration is required for grant activity
- Reviewing registration posture prior to major grant submissions
- Coordinating filings and renewals across jurisdictions
- Aligning financial reporting with funder and state requirements
- Providing documentation suitable for audits and due diligence
Schedule a consultation to review your grant-related compliance exposure.
Or contact our team directly.
Related Resources
Charitable Solicitation Registration & Online Donation Platforms
How Many States Does My Nonprofit Need to Register In?
Charitable Solicitation Registration Mistakes That Put Nonprofits at Risk