Alabama Charitable Solicitation Registration Exemptions

Last Updated: February 2026

Charitable organizations that solicit contributions in Alabama are generally required to register with the Attorney General before fundraising in the state. However, Alabama provides several statutory exemptions. These exemptions are broader than in many states, but they are often misunderstood — particularly by nonprofits fundraising nationally or online.

This page explains which organizations may qualify for exemption from Alabama charitable solicitation registration and when registration is still required.

For a broader overview of how registration works, see How Charitable Registration Works

Who Must Normally Register in Alabama

Registration is required if a nonprofit:

Is located in Alabama and solicits contributions
Solicits contributions from Alabama residents
Uses paid solicitors or commercial co-venturers in Alabama
Has charitable solicitations conducted on its behalf in Alabama

Organizations that fundraise across multiple states should also review:
Multi-State Fundraising Compliance Guide

Exemptions From Alabama Charitable Registration

Alabama exempts several categories of organizations. However, exemption in Alabama does not eliminate registration obligations in other states.

1. Small Charities Under $25,000

A charitable organization may be exempt if:

It does not intend to solicit and receive more than $25,000 in contributions during a fiscal year (nationwide), and
All fundraising activities are conducted entirely by unpaid volunteers

Important considerations:

The revenue threshold applies to total nationwide contributions.
Membership dues are generally excluded from the calculation.
Revenue from merchandise or services is typically included.
If contributions exceed the threshold during the fiscal year, registration must occur promptly.
Any compensation tied to fundraising functions can disqualify the exemption.

For national nonprofits engaging in online fundraising, this exemption is rarely sustainable long-term.

2. Religious Organizations

Tax-exempt religious entities are generally exempt from registration in Alabama. This includes churches and related religious bodies.

However, organizations operating nationally should evaluate whether affiliated entities or separately incorporated ministries may trigger registration requirements elsewhere.

See:
How Many States Does My Nonprofit Need to Register In?

3. Educational Institutions

Educational institutions with a defined curriculum, faculty, and regular instruction may qualify for exemption. Foundations closely associated with exempt educational institutions may also qualify.

Accreditation is not necessarily determinative, but organizational structure and fundraising scope matter.

4. Political Organizations

Certain political organizations organized under federal tax provisions governing political activity are exempt from Alabama charitable registration.

5. Fraternal, Patriotic, Benevolent, and Similar Organizations

Alabama provides exemption for various categories of membership-based organizations, including:

Fraternal organizations
Patriotic organizations
Benevolent societies
Alumni associations
Certain historical or civil rights organizations
Associated auxiliaries

Eligibility depends on organizational purpose and fundraising structure.

6. Civic Membership Organizations

Civic leagues and similar membership organizations that solicit solely from their own members may qualify for exemption.

Public-facing fundraising typically eliminates this exemption.

7. Appeals for a Named Individual

Solicitations conducted solely for the relief of a specifically named individual may be exempt if:

The funds are collected for that identified beneficiary
Total collections do not exceed a defined cap
Funds are fully transferred to the named individual

This exemption does not apply to ongoing charitable programs.

8. United Way Allocations and Similar Federated Campaigns

Organizations that receive funds solely through an incorporated community chest or united fund may qualify for exemption if:

The federated organization complies with Alabama registration rules
The nonprofit does not independently raise over $25,000
All fundraising functions are volunteer-driven

9. Veterans, Volunteer Firefighters, and Similar Organizations

Alabama exempts certain veterans organizations, volunteer fire departments, ambulance companies, rescue squads, and bona fide auxiliaries or affiliates, provided fundraising is conducted by members and volunteers without compensation.

Important Considerations for Multi-State Nonprofits

Exemption in Alabama does not:

Create exemption in other states
Eliminate federal Form 990 disclosure requirements
Prevent registration obligations triggered by online fundraising

Nonprofits fundraising nationally should review:

When Alabama Registration May Still Be Advisable

Even where exemption appears available, some organizations choose to register voluntarily in order to:

Demonstrate compliance to grantmakers
Reduce board governance risk
Avoid inadvertent threshold violations
Maintain consistency across states

This is particularly relevant for nonprofits approaching the $25,000 contribution threshold or using digital fundraising platforms.

Governance and Risk Implications

Boards and finance committees should ensure that:

Exemption determinations are documented
Revenue thresholds are monitored during the fiscal year
Volunteer-only fundraising requirements are maintained where required
Expansion into online or paid fundraising is evaluated in advance

Failure to register when required can create enforcement risk and public disclosure issues.

For more on enforcement and consequences, see:
What Happens If a Nonprofit Fails to Register?

Need Help Evaluating Alabama Exemption Status?

Determining whether a nonprofit qualifies for exemption — particularly in a multi-state fundraising environment — requires careful review of revenue sources, fundraising methods, and organizational structure.

If your organization is fundraising in Alabama or evaluating multi-state compliance, you may schedule a consultation