You have questions. wE have answers.
Any charity that solicits contributions or support in a state that requires registration must register in that state. What constitutes “solicitation” is different in every state but many have broad interpretations so to be prudent it is critical to maintain proper compliance.
There are currently 40 states plus the District of Columbia that require registration. Eight states require a Corporate registration. Some states require that you have a registered agent. We help you navigate all of the different requirements and can provide all of these services to you. You can choose to only register in certain states but may be required to return donations from states where registration is required to avoid penalties.
No. After the initial registration most states will require a renewal registration or at a minimum an annual report each year. We keep track of those deadlines for you so nothing gets overlooked. Especially when nonprofit turnover is so high, it is beneficial to have someone else looking out for your organization.
Yes. This is different for each state and include but are not limited to monetary fines, civil and criminal penalties, and loss of solicitation privileges. Officers and board members can also be liable for non-compliance.
Possibly. Each state has different qualifications for exemption and those can change at any time. In many states, schools, hospitals and religious organizations may be exempt as well as organizations that have a gross income of less than $25,000. However, a number of states require the organization to apply for exemption by completing the proper forms and providing some additional documentation.
No. There is not a public location to do this. Each state has its own paperwork and requirements.
You could but it is difficult to understand the different requirements of each state. It is very time consuming to complete all of the registrations. This is time that is spent away from serving your clients and focusing on your mission. If you have staff changes, these registrations could fall by the wayside which could cause you to miss a deadline and fall out of compliance. Using the experts at MP May you know that your registrations will always be taken care of.
Some jurisdictions require an organization that solicits in that state and does not have a local office to have a registered agent with a local address. The registered agent is a legal representative who can receive official documents on behalf of the organization.
An arrangement with a for-profit business to receive a percentage of sales. These are often referred to as “charitable sales promotion” or “cause marketing”. This is a regulated activity in many states.
The registration fees vary by state and type of organization. Some fees are based on income. Some states require a financial audit prepared by an accountant. The general range of state fees for initial nationwide registrations is between $1,700 and $3,600 but could be more for very large nonprofits.
When you contact MP May we will always perform a thorough review of your current registrations so we can confirm for you where you are registered and identify future renewal dates as well as any concerns. Then we will show you how we can help you moving forward.