FUNDRAISING COMPLIANCE CHECKLIST

TABLE OF CONTENTS

1. Federal Compliance
2. State Charitable Solicitation Registration
3. Online Fundraising Compliance
4. Professional Fundraiser Requirements
5. Event-Based Fundraising
6. Gaming and Raffle Compliance
7. Donor Acknowledgment Compliance
8. Annual Renewal and Reporting
9. State-Specific Quick Reference
10. Sources and References

1. FEDERAL COMPLIANCE

1.1 — Tax-Exempt Status

☐ IRS determination letter obtained and on file (IRC § 501(c)(3))

☐ Organization listed on IRS Tax Exempt Organization Search (formerly Select Check)

☐ Annual Form 990 / 990-EZ / 990-N filed and current

☐ Public charity status confirmed (not a private foundation, unless PF rules followed)

1.2 — Solicitation Disclosures

☐ All solicitation materials include a statement that contributions are tax-deductible (if applicable)

☐ If the organization is NOT eligible for tax-deductible contributions, all solicitations disclose that fact — IRC § 6113 (penalty: $1,000 per day, up to $10,000 per year)

☐ Quid pro quo disclosure provided for contributions exceeding $75 — IRC § 6115

☐ Solicitations do NOT contain false or misleading statements

1.3 — Unrelated Business Income

☐ Fundraising activities reviewed for unrelated business income tax (UBIT) implications — IRC § 513

☐ Activities qualify for exclusions: volunteer labor exception (§ 513(a)(1)), donated merchandise exception (§ 513(a)(3)), or convenience of members exception

☐ Form 990-T filed if gross unrelated business income exceeds $1,000

2. STATE CHARITABLE SOLICITATION REGISTRATION

2.1 — Initial Registration

☐ Identified all states where the organization solicits contributions (including online, mail, phone, and in-person)

☐ Determined whether exemptions from registration apply (common exemptions: churches, educational institutions, small organizations below revenue thresholds)

☐ Filed initial registration in each required state BEFORE commencing solicitation

☐ Filed the Unified Registration Statement (URS) where accepted

☐ Paid all applicable filing fees

2.2 — Registration Checklist by State Category

States Requiring Registration (41 + D.C.):

☐ Alabama ☐ Alaska ☐ Arkansas ☐ California ☐ Colorado
☐ Connecticut ☐ District of Columbia ☐ Florida ☐ Georgia ☐ Hawaii
☐ Illinois ☐ Kansas ☐ Kentucky ☐ Louisiana ☐ Maine
☐ Maryland ☐ Massachusetts ☐ Michigan ☐ Minnesota ☐ Mississippi
☐ Missouri ☐ Nevada ☐ New Hampshire ☐ New Jersey ☐ New Mexico
☐ New York ☐ North Carolina ☐ North Dakota ☐ Ohio ☐ Oklahoma
☐ Oregon ☐ Pennsylvania ☐ Rhode Island ☐ South Carolina
☐ Tennessee ☐ Utah ☐ Virginia ☐ Washington ☐ West Virginia
☐ Wisconsin

States NOT Currently Requiring Registration:

Arizona, Delaware, Idaho, Indiana, Iowa, Montana, Nebraska, South Dakota, Vermont, Wyoming

3. ONLINE FUNDRAISING COMPLIANCE

3.1 — Website and Email Solicitations

☐ Organization website includes required state disclosures (several states require specific website language)

☐ Online donation forms comply with PCI-DSS standards for payment processing

☐ Privacy policy posted and compliant with state laws

☐ Donation confirmation / receipt emailed automatically for each contribution

☐ The Charleston Principles applied to determine state registration obligations for internet solicitation

3.2 — Crowdfunding and Peer-to-Peer

☐ Third-party crowdfunding platforms (e.g., GoFundMe Charity) reviewed for compliance

☐ Peer-to-peer fundraising campaigns supervised by organization staff

☐ All crowdfunding solicitations clearly identify the organization as the beneficiary

☐ Platform fees and pass-through arrangements documented

3.3 — Social Media Fundraising

☐ Facebook / Instagram charitable giving tools registered through the platform

☐ Social media posts containing solicitation language comply with applicable disclosure requirements

☐ Organization controls and monitors all social media fundraising pages

4. PROFESSIONAL FUNDRAISER REQUIREMENTS

☐ Written contract executed with any paid professional fundraiser BEFORE solicitation begins

☐ Contract specifies compensation terms, charitable purpose, and right of the organization to cancel

☐ Professional fundraiser registered in each state where they will solicit (most states require separate registration)

☐ Professional fundraiser bond filed where required (several states require surety bonds)

☐ Organization retains control over solicitation content and donor data

☐ Financial reports from professional fundraiser reviewed at least [monthly / quarterly]

5. EVENT-BASED FUNDRAISING

5.1 — Gala, Dinner, and Auction Events

☐ Quid pro quo disclosure for tickets exceeding $75 (IRC § 6115)

☐ Fair market value of meal, entertainment, and benefits determined and disclosed

☐ Auction items — donated items acknowledged to donors (no value assigned by organization)

☐ Auction proceeds — winning bidders receive acknowledgment letters for amounts exceeding FMV

☐ Sales tax collected on auction purchases where required by state law

☐ Liquor license obtained (if applicable)

5.2 — Walk-a-Thon, Run, and Athletic Events

☐ Participant registration fees reviewed for tax-deductibility (generally NOT deductible if tangible benefits received)

☐ Pledge forms specify the charitable purpose and organization name

☐ Insurance coverage obtained for event liability

☐ Permits obtained from local government (if applicable)

6. GAMING AND RAFFLE COMPLIANCE

☐ State gaming and raffle laws reviewed (requirements vary dramatically by state)

☐ Gaming license or permit obtained where required

☐ Raffle conducted in compliance with state rules (some states prohibit raffles; others require permits)

☐ Prizes valued and reported (IRS Form W-2G for prizes exceeding $600 or 300:1 odds)

☐ Net proceeds dedicated to charitable purposes

7. DONOR ACKNOWLEDGMENT COMPLIANCE

☐ Written acknowledgment procedures in place for all contributions ≥ $250 (IRC § 170(f)(8))

☐ Acknowledgment letters sent contemporaneously (before donor files return)

☐ Quid pro quo disclosure provided for contributions > $75 (IRC § 6115)

☐ Non-cash contributions described (no valuation by organization)

☐ Form 8283 Section B signed for non-cash contributions > $5,000

☐ Form 1098-C filed for vehicle donations > $500 (within 30 days)

☐ Annual giving summaries sent to recurring donors

8. ANNUAL RENEWAL AND REPORTING

☐ State charitable solicitation registrations renewed before expiration dates

☐ State financial reports (e.g., IRS Form 990 or state-specific forms) filed with each registered state

☐ IRS Form 990 (or 990-EZ / 990-N) filed by the 15th day of the 5th month after fiscal year end

☐ State annual report filed with Secretary of State (to maintain corporate good standing)

☐ Fundraising expense ratio calculated and reviewed by the Board

☐ All registration expiration dates calendared for the coming year

9. STATE-SPECIFIC QUICK REFERENCE

SOURCES AND REFERENCES

• IRS, "Charitable Solicitation — State Requirements," https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-solicitation-state-requirements
• National Council of Nonprofits, "Charitable Solicitation Registration," https://www.councilofnonprofits.org/running-nonprofit/fundraising-and-resource-development/charitable-solicitation-registration
• IRS Publication 1771, "Charitable Contributions — Substantiation and Disclosure Requirements"
• Charleston Principles (2001), NASCO/NAAG
• Labyrinth, "State Fundraising Compliance Guide," https://labyrinthinc.com/state-fundraising-compliance-guide/
• Internal Revenue Code §§ 170, 501(c)(3), 513, 6113, 6115