Thursday, February 4, 2010

Online Donations and State Regulation

Thank you to Susan Detwiler (Bloom Metz Consulting)who brought up recent discussions surrounding online solicitations and the effect it has on state regulations for nonprofit registration. To explain, for an organization to solicit funds in a particular state, that organization has to register with that state. Pennsylvania is particularly adamant about this, and of course it does not come without expense - a few hundred dollars for each state's registration.

For most of you, this does not present a problem - you are local organizations soliciting your local constituency, even if you cross borders with DE, NJ and PA. The problem Susan mentioned was a zoo in MD sending a letter to PA - but we have no idea how the state regulators got involved.

The end result? Just know that if you decide to send wide-spread solicitation letters to, perhaps, people you do not know, you may run into regulatory issues. But if your solicitees know who you are, you should be fine.

It is always something, isn't it? If you have run into this, please let me know! And if you are truly concerned, your CPA will know the IRS regulations.