If my out-of-state charity wants to ask DC residents for donations, what does DC require us to do first?

Plain-English summary

The American College of Osteopathic Internists, a Florida-based professional organization, wrote to the DC Corporation Counsel in April 1988 asking what it would need to do to legally solicit funds in the District of Columbia. Assistant Corporation Counsel Ida Powell answered with the two-step registration that DC has required of out-of-state nonprofits since 1957:

1. Register as a foreign (or domestic, if DC-formed) nonprofit corporation with the DC Superintendent of Corporations. This is the corporate registration step that lets a nonprofit lawfully exist or operate in the District.

2. Apply for a charitable solicitation license with the Business Services Division of the Department of Consumer and Regulatory Affairs (now the Department of Licensing and Consumer Protection), and verify the organization's federal 501(c)(3) tax-exempt status as part of that application.

The legal basis is the District of Columbia Charitable Solicitation Act (Pub. L. 85-87, 71 Stat. 278 (1957)), codified at D.C. Code § 2-701 et seq., implemented by regulations at 16 DCMR Chapter 13.

The opinion is short and directional rather than analytical, the kind of letter the Corporation Counsel sometimes wrote to walk an out-of-state organization through DC's compliance process. Its underlying value today is as a primary source confirming that DC has a layered nonprofit registration regime: separate corporate registration and charitable solicitation registration, both required before a nonprofit can lawfully ask DC residents for money.

What this means for you

If you are an out-of-state charity that wants to fundraise in DC

Plan for both registrations before you start asking DC residents for donations. The corporate registration establishes your legal right to operate in the District as a foreign (out-of-state) nonprofit corporation. The charitable solicitation registration is a separate, consumer-protection-driven licensure.

The agency names have changed since this 1988 opinion. Today:

• Corporate registration: DC Department of Licensing and Consumer Protection (DLCP), Corporations Division (formerly the Superintendent of Corporations under DCRA).
• Charitable solicitation registration: DLCP, Business and Professional Licensing Administration (formerly DCRA's Business Services Division).

Both registrations have ongoing renewal requirements. Get current forms and instructions from DLCP at https://dlcp.dc.gov/.

You will also need to confirm your federal 501(c)(3) status (typically by submitting a copy of your IRS determination letter). DC does not award charitable status of its own; it relies on federal IRS recognition.

If you are a DC-formed nonprofit

You still need both registrations. The corporate registration (as a domestic nonprofit) is required when you incorporate, and the charitable solicitation registration is required separately before you actually solicit funds.

If you are a fundraising consultant or third-party solicitor

DC's charitable solicitation regulations (16 DCMR Chapter 13) historically have included separate registration requirements for paid solicitors and fundraising counsel, in addition to the registration required of the charity itself. Confirm whether your consulting role triggers a separate registration before you start work in the District.

If you are a nonprofit attorney advising a multistate fundraising program

DC is one of about 40 jurisdictions that requires charitable solicitation registration. Many states accept the Unified Registration Statement (URS); DC does so as well. The two-step structure (corporate registration plus charitable solicitation registration) is fairly common across states. Build that into your client's compliance calendar.

If you are a DC resident

DC's charitable solicitation registration regime is intended to give you confidence that organizations asking you for donations are legitimate and have submitted to DC oversight. You can verify whether a charity is registered through DLCP's licensing search. If a charity is unregistered, that is a yellow flag worth noting before you give.

Common questions

Q: What does the Charitable Solicitation Act of 1957 require?
A: It requires charitable organizations soliciting funds in DC to register, file annual financial information, and follow rules on professional solicitors and fundraising counsel. The Act is codified at D.C. Code § 2-701 et seq., with implementing regulations at 16 DCMR Chapter 13.

Q: Is there an exemption for small charities?
A: Many state charitable solicitation laws have exemptions for charities raising less than a threshold amount per year, and for certain religious, educational, or membership organizations. Check the current DC regulations and statute for specific exemptions; the 1957 Act and 1987 regulations referenced in this opinion may not capture later amendments.

Q: How often do I have to renew my DC registrations?
A: Both the corporate registration and the charitable solicitation license are subject to periodic renewal. Current renewal cycles and fees are set by DLCP regulation; check DLCP's website for current schedules.

Q: What if I solicit donations online from people in DC without ever physically being in DC?
A: This question was not on the radar in 1988 but is squarely relevant today. State charitable solicitation regulators have generally taken the position that online solicitations targeting their residents trigger registration requirements. The Charleston Principles (an interstate guidance document) provide some structure. DC's current treatment requires registration if the charity specifically targets DC residents or receives substantial donations from DC residents on an ongoing basis.

Q: What is the difference between 501(c)(3) status and DC charitable solicitation registration?
A: 501(c)(3) is federal tax-exempt status issued by the IRS, which makes contributions to your organization tax-deductible. DC charitable solicitation registration is a state-level regulatory license to ask DC residents for donations. You generally need both to fundraise in DC as a tax-deductible charity.

Q: What happens if I solicit in DC without registering?
A: Enforcement under the Charitable Solicitation Act includes civil penalties, injunctive relief, and potential disqualification from soliciting in DC for a period. The Office of the Attorney General has consumer-protection authority to enforce.

Background and statutory framework

The District of Columbia Charitable Solicitation Act was enacted by Congress in 1957 (Pub. L. 85-87, 71 Stat. 278), at a time when many states were enacting parallel legislation in response to concerns about fraudulent and exploitative charitable fundraising. The federal status of the DC act (DC was governed directly by Congress until 1973) reflects the period before Home Rule. The Act was incorporated into the DC Code at § 2-701 et seq., where it has remained subject to subsequent amendments by the DC Council.

The structure of the Act is conventional for state charitable solicitation laws of the era:

• Registration before solicitation. Charities must register with DC before soliciting, providing detailed information about their purposes, officers, finances, and fundraising methods.
• Annual financial reporting. Registered charities must file annual financial reports, typically including IRS Form 990 information.
• Regulation of professional solicitors and counsel. Paid third-party fundraisers must register separately and disclose their compensation arrangements.
• Disclosure requirements at the point of solicitation. Charities and solicitors must disclose certain information to potential donors.
• Enforcement. The District has authority to enforce compliance through civil penalties and injunctions.

The implementing regulations at 16 DCMR Chapter 13 fill in operational details: application forms, fee schedules, exemption categories, financial reporting requirements, and enforcement procedures. The regulations have been updated multiple times since 1987 (when the version cited in this opinion was current).

The two-step structure described in this opinion, separate corporate registration plus separate charitable solicitation registration, reflects DC's bifurcated regulatory framework: corporate existence is one regulatory matter (handled by the Corporations Division), and consumer-protection licensing of fundraising activity is a different matter (handled by the licensing arm). Many states use a similar bifurcation.

The opinion is procedurally significant in another way. It is one of the relatively common Corporation Counsel letters that simply walked an inquirer through DC's compliance regime rather than addressing a contested legal question. This kind of letter served the same role that informal guidance documents and FAQs serve today on agency websites. As DC has moved more compliance information online, such letters have become less common.

Citations and references

Statutes:
- District of Columbia Charitable Solicitation Act, Pub. L. 85-87, 71 Stat. 278 (1957)
- D.C. Code § 2-701 et seq. (charitable solicitation provisions)

Regulations:
- 16 DCMR Chapter 13 (1987) (charitable solicitation regulations)

License

This opinion is published by the Office of the Attorney General for the District of Columbia. Per the DC.gov terms of use, content is licensed under Creative Commons Attribution 3.0, which permits commercial use, redistribution, and modification with attribution.

Source

• Original PDF: https://oag.dc.gov/sites/default/files/2018-02/Opinion-July-2014-Solicitation-of-Funds.pdf

Original opinion text

Government of the District of Columbia
OFFICE OF THE CORPORATION COUNSEL
District Building
Washington, D.C. 20004

In Reply Refer to: LCD:L&O:IAP:gbt (88-68)(LCD-3324)

May 4, 1988

Mr. Ralph J. Tomei, D.O.
Executive Director
American College of Osteopathic Internists
14750 N.W. 77th Court, Suite 130
Miami Lakes, Florida 33016

Dear Mr. Tomei:

This is in response to your request, dated April 15, 1988, for the District's requirements for solicitation of funds in the District of Columbia.

As a general proposition, you must register as a nonprofit corporation (domestic or foreign) with the Superintendent of Corporations of the District of Columbia (614 H Street, N.W., Room 407, Washington, D.C. 20001, (202) 727-7278), and complete an application to conduct charitable solicitations and verify your 501(c)(3) status with the Business Services Division of the Department of Consumer and Regulatory Affairs. See the District of Columbia Charitable Solicitation Act, Pub. L. 85-87, 71 Stat. 278 (1957), D.C. Code § 2-701 et seq. (1981) and 16 DCMR Chapter 13 (1987). A copy of the application form can be obtained from, and any questions should be directed to:

Mrs. Beatrice Patillo
Supervisor
New License Branch
Business Services Division
Department of Consumer and Regulatory Affairs
614 H Street, N.W., Room 100
Washington, D.C. 20001
(202) 727-7100

Sincerely,

Ida A. Powell
Assistant Corporation Counsel, D.C.
Legislation and Opinions Section
Legal Counsel Division

Enclosures