What is AMS Day of Giving?
When is AMS Day of Giving?
Which organizations can participate?
Who can donate?
What is GiveGab/Bonterra?
How will donations be distributed?
How much of my donation goes to the nonprofit?
Who will receive my contact information?
Do I need to create an account to make a donation?
Can I make donations via a mobile device?
Can I pre-schedule a donation for AMS Day of Giving?
What if my preferred organization is not listed?
What is state charitable solicitation registration?
Why is state charitable solicitation registration compliance important?
While 501(c) nonprofits receive key financial benefits, the penalties for noncompliance can be serious. The IRS can revoke a nonprofit’s tax exemption and impose fines that can accrue daily. The states can administratively dissolve a nonprofit corporation and levy steep financial penalties. Perhaps worst of all, an organization can lose out on a grant or large donation because it has not kept itself in good standing.
Taking a proactive approach to compliance helps ensure the sustained success of the organization. The cost of staying compliant is small in comparison to the much larger costs of noncompliance. The saying, “an ounce of prevention is worth a pound of cure” could not be more true in this context.
What are the key aspects of state charitable solicitation registration compliance?
The IRS provides tax exemptions to eligible nonprofits under IRC 501(c). Public charities and private foundations receive 501(c)(3) tax exemption. The IRS scrutinizes organizations when they apply for 501(c)(3) but also ensures that those organizations meet the ongoing obligations to remain eligible. Nonprofits must file a 990 tax form each year with the IRS to disclose their financial data for the year.
Each state has their own set of requirements. Nonprofits are typically incorporated in a given state as a nonprofit corporation. The state in which the nonprofit has incorporated will impose requirements on the nonprofit, and those responsibilities typically span across multiple state agencies. Usually nonprofits must submit an annual filing to the corporations division of the secretary of state, maintain its license to fundraise (charitable solicitation registration), file for a state business license, and maintain state-level tax exemption with the revenue department. As nonprofits expand outside of the state or operate nationwide, they must comply with the same items in each other state as well.
In addition to IRS and state filing requirements, nonprofits must keep adequate records. Keeping accurate and complete records is critical in the event that an organization is audited. It is also common that board members or donors request information from the organization. Finally, records are necessary for submitting applications and renewal filings with various government agencies.
When I check the box on my organization account to declare state charitable solicitation registration compliance, what am I attesting to?
When you check the box you are attesting (defined as “declaring that something exists or is the case”) that your organization is compliant with applicable state fundraising requirements in the states in which you may solicit donors using the GiveGab/Bonterra platform.
Do you have additional resources to reference about state charitable solicitation registration?
Yes! Here are a few more resources from Harbor Compliance to help you:
- Guide and Overview of Many Nonprofit State by State Compliance Requirements
- Guide and Overview Specific to Fundraising Compliance
- National Council of Nonprofits and Harbor Compliance have partnered to create a white paper explaining the state charitable solicitation registration requirements.
- A Quick Summary of Charitable Solicitation in Graphic Form
- Executive Brief: Charitable Solicitation Registration (great for driving awareness and support with leadership and the board)
- State by State Links to the State Organizations that Regulate Charities, Solicitation, and Registrations
How can I ensure my organization receives its donations?
In order to receive your donations via ACH transfer, GiveGab/Bonterra requires a checking account eligible to receive ACH transfers and withdrawals. Your donations will be deposited within 5-7 business days on a daily rolling basis.
If your organization supplies the wrong type of bank account (such as a savings account), or the wrong account numbers, GiveGab/Bonterra will be in touch! After 30 days, if GiveGab/Bonterra hasn’t heard from your organization, they will refund your gifts back to your donors.