Recently the IRS changed the 990 and 990-EZ to require nonprofit organizations to report their fundraising activities in other states and declare whether the organization is registered as a fundraising nonprofit organization in each of the states. News stories suggest that failure to comply with state-by-state charitable solicitations registration may lead to the loss of an organization's 501 (c) status. Furthermore, states may pursue non-complying organizations to bring them into compliance and levy late fees and other pentalties.
Strict interpretations of states' laws, for which several states are noted, suggests that a "donate now" button on an organization's website may constitute multi-state fundraising if the organization does not specifically supress the ability of out of state residents to donate or return donations to donors who give from states where the organization is not in compliance with reporting requirements.
Resources and information on this subject:
In early October, 2011, Jim appealed to the Colorado Nonprofit Association LISTSERV for recommendations from members for vendors who provide state-by-state charitable solicitations registration services. We have compiled the responses and other vendors gathered from Jim's research into a short report.
Click here to view the report.
Disclaimer: This information is presented with no warranty of accuracy or thoroughness. It is shared FYI as a service of CommUlinks of Colorado, who expressly disclaims all responsibility for this content. In every case, users are urged to contact vendors directly and to conduct their own thorough research to ensure that they are getting the best available services at the best available price. CommUlinks makes no claim of any particular expertise to evaluate or recommend any of these services.
Disclaimer: Report and comments prepared by Jim Moore, CommUlinks of Colorado. Moore is not an attorney or a CPA, and these comments are not intended to be, nor should they be construed as, professional counsel. CommUlinks strongly urges that you seek appropriate counsel for legal and accounting matters.