1. CHARITABLE SOLICITATION What does it take to be compliant?
INCLUSION by design
October 2 - 3, 2017
Presented by:
Ify Aduba

2. INTRODUCTION TO US YOUR PRESENTER Ify Aduba
Harbor Compliance provides services and software to help executive teams and boards manage compliance. We have a proven track record of success in all stages and aspects of charitable solicitation compliance including registrations, exemptions, extensions, renewals, corporate qualifications, and registered agents.
YOUR PRESENTER
Ify Aduba
Nonprofit Compliance Specialist
(direct)
Harbor Compliances is not an accounting or legal firm and does not provide tax, financial, or legal advice.

3. WHAT WILL WE COVER? State registration requirements Online fundraising
Why compliance should be a priority
What it takes to register, including the costs
How to manage registrations and simplify
the process

4. CHARITABLE SOLICITATION COMPLIANCE
From the Internal Revenue Service
Many states have laws regulating the solicitation of funds for charitable purposes. These statutes generally require organizations to register with a state agency before soliciting the state's residents for contributions, providing exemptions from registration for certain categories of organizations. In addition, organizations may be required to file periodic financial reports. State laws may impose additional requirements on fundraising activity involving paid solicitors and fundraising counsel.
41 states require registration
24 states require disclosure statements

5. Solicitation = Asking for donations DO THESE REQUIREMENTS APPLY TO US?
Common forms of solicitation:
Fundraising events
Direct mail
Phone calls s
Online fundraising
Applying for grants
Radio and TV ads
Collecting membership dues
Auctions, bingos, raffles, games
Professional solicitors, fundraising consultants, or commercial co-ventures

6. 1 2 OR ONLINE FUNDRAISING Two practical approaches:
Register or file an
exemption in all 41 states OR
Do not accept online contributions from states in which you are not registered
Ways to solicit online:
Quick notes about
The Charleston Principles:
State guidelines; not law
Only 19 state follow them
“Donate Now”
buttons
Social media

7. Solicitation is the key
WHERE DO WE NEED TO REGISTER?
Solicitation is the key
TAKE ACTION!
Review solicitation in each of the 41 states
Compliance may mean filing registrations or exemptions
Educate your organization on the
meaning of solicitation and review
your fundraising footprint.

8. WHY COMPLIANCE SHOULD BE A PRIORITY
Risks and consequences of noncompliance
State fines and penalties
Bad PR and embarrassment
Loss of state recognition of tax exemption
Revocation of right to solicit
Enforcement actions and audits
Liability for officers and directors
Missed grant and donation opportunities
TAKE ACTION!
Communicate to your organization why compliance should be a priority.

9. 1 2 3 4 WHAT DOES IT TAKE TO REGISTER? Research Apply Monitor Renew
Registration status
Application forms, fees, and supporting documents
Other state pre-requisites 2
Apply
Mail, fax, and online applications
State fees range from $1,400-5,000 for 41-state registration 3
Monitor
Process times vary from a week to several months
Follow up with states to ensure approval
Track renewal dates
File renewal applications
Stay current with legislative changes 4
Renew

10. 1 2 3 4 WHAT DOES IT TAKE TO REGISTER? Research Apply Monitor Renew
Registration status
Application forms, fees, and supporting documents
Other state pre-requisites 2
Apply
Mail, fax, and online applications
State fees range from $1,400-5,000 for 41-state registration 3
Monitor
Process times vary from a week to several months
Follow up with states to ensure approval
Track renewal dates
File renewal applications
Stay current with legislative changes 4
Renew

11. 1 2 3 4 WHAT DOES IT TAKE TO REGISTER? Research Apply Monitor Renew
Registration status
Application forms, fees, and supporting documents
Other state pre-requisites 2
Apply
Mail, fax, and online applications
State fees range from $1,400-5,000 for 41-state registration 3
Monitor
Process times vary from a week to several months
Follow up with states to ensure approval
Track renewal dates
File renewal applications
Stay current with legislative changes 4
Renew

12. 1 2 3 4 WHAT DOES IT TAKE TO REGISTER? Research Apply Monitor Renew
Registration status
Application forms, fees, and supporting documents
Other state pre-requisites
Mail, fax, and online applications
State fees range from $1,400-5,000 for 41-state registration
Process times vary from a week to several months
Follow up with states to ensure approval
Track renewal dates
File renewal applications
Stay current with legislative changes
TAKE ACTION!
Review how your organization
handles compliance. If you haven’t
registered, discuss plans for
becoming compliant.

13. WHAT DOES IT TAKE TO MANAGE COMPLIANCE?
Time to manage
renewals
Files to keep copies of licenses and applications
Spreadsheet of registration numbers, statutes, due dates
Calendar system for
reminders of renewals
Preparing
disclosure statements
Monitor legislative and
administrative changes

14. OUR SOLUTION TAKE ACTION! Fully manage each step of the process
Tracking software for reporting
Flat-rate pricing per state
Expert team with a dedicated Compliance Specialist
TAKE ACTION!
Reach out to us to discuss how we
can partner with your organization!

15. Contact us! QUESTIONS & ANSWERS Next Step:
Schedule a time to speak or send additional questions to
Brock Klinger at
Ify Aduba at