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Where Nonprofits Must Register Based on Online Fundraising

Online fundraising allows nonprofits to reach donors nationwide, but it also creates charitable solicitation registration obligations that are often misunderstood.

Many organizations assume registration is only required where they are incorporated or operate programs. In reality, donor location and fundraising activity are the primary drivers of multi-state registration requirements.

This page explains how nonprofits should determine where registration is required based on online fundraising activity—and when multi-state compliance planning becomes necessary.

If your organization fundraises nationally and wants confirmation of its registration footprint, you can discuss your situation with Ironwood Registrations: Contact us


The Core Rule: Online Fundraising Can Trigger Multi-State Registration

In most states, charitable solicitation registration is required before requesting or receiving donations from residents of that state.

Online fundraising can trigger registration when it creates:

  • Ongoing donor relationships
  • Repeated contributions from a state
  • Targeted digital outreach
  • Active solicitation through donation-enabled websites

This applies even if the nonprofit has no physical presence in the state.


How States Evaluate Online Fundraising Activity

State regulators generally look at three primary factors when determining registration requirements.


1. Targeted Online Solicitation

Registration is usually required when a nonprofit intentionally targets residents of a state, such as through:

  • Email campaigns sent to residents of those states
  • Geo-targeted digital advertising
  • State-specific donation pages or appeals
  • Online event promotion aimed at local audiences

Targeted outreach almost always triggers registration obligations.


2. Ongoing or Repeated Donations From a State

Even without targeted marketing, registration may be expected when a nonprofit:

  • Receives repeated donations from residents of a state
  • Maintains donor communication after an initial gift
  • Engages in follow-up solicitations or stewardship

A single isolated online donation rarely triggers immediate registration. Patterns and continuity matter.


3. Interactive Donation Platforms

Most nonprofit websites are considered “interactive” because they:

  • Accept online donations
  • Encourage ongoing giving
  • Collect donor contact information

States may view these sites as active solicitation tools, particularly when they are paired with continued outreach.


The Charleston Principles (Legal Framework)

Many states rely on regulatory guidance commonly referred to as the Charleston Principles when assessing online fundraising activity.

The Charleston Principles help define when internet-based solicitation crosses the line from passive availability to active fundraising that requires registration.

You can read a detailed explanation here: Charleston Principles Overview


Common Misconceptions That Create Compliance Risk

“We only fundraise online, so we don’t need to register.”

Not true. Online fundraising is one of the most common triggers of multi-state registration.

“We only register where we’re incorporated.”

In most cases, incorrect. Donor location matters more than headquarters.

“We’ll register later if it becomes an issue.”

Many organizations discover gaps during audits, grant reviews, or major donor due diligence—often after fundraising has already occurred.


How Many States Do Most National Nonprofits Register In?

There is no universal number.

However:

  • Organizations with small, local fundraising footprints may only register in a few states.
  • Organizations fundraising nationally often register in 20–40+ states.
  • Large digital fundraising programs may eventually require registration in nearly all states that regulate charitable solicitation.

This is why most multi-state nonprofits move away from state-by-state decision-making and adopt a centralized strategy.


When to Consider a Coordinated Multi-State Registration Strategy

A coordinated approach is typically warranted when an organization:

  • Raises more than ~$500,000 annually
  • Accepts donations from multiple states
  • Conducts national email or digital campaigns
  • Uses third-party fundraising platforms
  • Has a growing donor base across jurisdictions

At this stage, managing compliance internally becomes time-consuming and risky.

Multi-state fundraising compliance guidance


How Ironwood Registrations Helps

Ironwood Registrations works with nonprofits to:

  • Determine where registration is required
  • Avoid unnecessary filings
  • Coordinate initial registrations and renewals
  • Align audit and financial reporting requirements
  • Maintain documentation supporting compliance decisions

Schedule a consultation

Or contact our team directly


Related Resources

Charitable Solicitation Registration Requirements by State

Multi-State Fundraising Compliance Guide for Nonprofits