Many states offer charity registration exemptions. Are you spending money, year after year, to register in a state where your organization may be exempt?
Charities can be exempt from registration for many reasons, including those charities that receive less than a certain amount of contributions annually. Other charities that may be exempt are religious organizations, hospitals, higher education institutions, schools, veterans organizations, and membership organizations. I can’t stress how important it is to make sure you have thoroughly explored state charity registration exemption opportunities. It is best if this is done prior to initial registrations, but don’t let that stop you from exploring! Let’s look at an example…….
College and University Foundations
Of the 40 states that require charitable solicitation registration, nearly half of these states exempt higher education institutions and/or their supporting foundations. Just looking at the state registration fees, taking advantage of these exemptions will save the nonprofit thousands of dollars in fees year after year.
Each state has their own guidance and process for exemptions. Some states allow a nonprofit to self-certify based on the state statute with no paperwork ever filed. Other states require a one-time exemption request. This may be in the form of a letter, an affidavit, or a state form. Unfortunately, a few of the states that offer exemptions still require an annual filing – and yes – even an annual fee:(
For states offering the exemption to charities receiving less than a certain amount of contributions, it is important that the nonprofit monitor their contributions and be prepared to file once the limit is surpassed.
Don’t Spend $ You Don’t Have to!
Explore state charity registration exemptions – keep your money for your mission.