What Nonprofits Need to Know
Online donation platforms make it easy for nonprofits to accept contributions nationwide—but they do not eliminate charitable solicitation registration requirements.
Many organizations assume that using a third-party platform shifts compliance responsibility away from the nonprofit. In most cases, that assumption is incorrect.
This page explains how charitable solicitation registration applies when nonprofits use online donation platforms and why platform-based fundraising often increases multi-state compliance exposure.
If your organization relies on one or more donation platforms and fundraises nationally, Ironwood Registrations can help evaluate your registration footprint: contact us
The Key Principle: The Nonprofit Is Responsible for Registration
In most states, the charitable organization—not the donation platform—is responsible for complying with charitable solicitation registration laws.
Even when a platform:
- Processes payments
- Hosts donation pages
- Issues receipts
- Provides compliance disclaimers
The legal obligation to register generally remains with the nonprofit receiving the funds.
Why Donation Platforms Increase Multi-State Exposure
Online platforms are designed to expand donor reach. As a result, they often accelerate registration obligations by:
- Making donations available nationwide by default
- Facilitating recurring contributions
- Collecting donor contact information
- Enabling follow-up communication and stewardship
From a regulatory perspective, these features often constitute active solicitation, not passive availability.
Common Misconceptions About Donation Platforms
“The platform handles registration for us.”
Most platforms do not register charities in all states on their behalf. At best, some platforms provide educational resources or limited tools—but responsibility remains with the nonprofit.
“We only fundraise online, so state rules don’t apply.”
Online fundraising is one of the most common triggers of multi-state registration requirements.
States often rely on donor location, not solicitation method, when evaluating compliance.
“The platform’s disclaimers protect us.”
Platform disclaimers do not override state registration laws. They may reduce platform liability, but they do not eliminate nonprofit obligations.
How States Evaluate Platform-Based Fundraising
When reviewing online fundraising activity, states often consider:
- Whether donations are accepted from state residents
- Whether follow-up communications occur
- Whether donations are recurring or sustained
- Whether campaigns target specific audiences
- Whether fundraising is ongoing rather than isolated
These factors align closely with guidance commonly referred to as the Charleston Principles.
Learn more about how this framework is applied: Charleston Principles Overview
Donation Platforms and Professional Fundraisers
Most donation platforms are not classified as professional fundraisers under state law.
However, additional obligations may arise if a nonprofit:
- Uses paid fundraising consultants
- Engages peer-to-peer campaigns with compensation
- Participates in commercial co-venture promotions
These relationships may require additional disclosures or filings beyond standard registration.
Why Platform Use Often Reveals Registration Gaps
Many organizations discover missing registrations after:
- Launching a new online campaign
- Expanding recurring giving programs
- Implementing peer-to-peer fundraising
- Preparing for an audit or grant application
At that point, organizations may be required to remediate compliance retroactively.
What happens when registration is missing
Best Practices for Nonprofits Using Donation Platforms
Organizations fundraising nationally typically:
- Evaluate donor geography regularly
- Track which states generate contributions
- Align registration decisions with online campaign launches
- Coordinate renewals across all required states
- Maintain documentation supporting compliance determinations
This becomes increasingly important as contribution volume grows.
When to Consider Centralized Compliance Management
Platform-based fundraising often reaches a tipping point when:
- Contributions exceed ~$500,000 annually
- Donors come from many states
- Multiple renewals occur throughout the year
- Audit or review thresholds are triggered
At that stage, centralized coordination often reduces risk and internal burden.
Multi-state compliance overview
How Ironwood Registrations Helps
Ironwood Registrations works with nonprofits to:
- Determine where registration is required
- Coordinate filings triggered by online fundraising
- Align platform activity with compliance strategy
- Track renewals and financial thresholds
- Maintain audit-ready documentation
Schedule a consultation to review your platform-based fundraising footprint:
Or contact our team directly
Related Resources
Where Nonprofits Must Register Based on Online Fundraising