Your IRS approval is not a license to fundraise.
That surprises many founders. Getting 501(c)(3) status means the IRS recognizes your nonprofit as tax-exempt. Asking the public for money is a separate step — and in most states, it comes with its own registration.
It is called charitable solicitation registration. Roughly 39 states plus Washington, D.C. require most charities to register with the state before they ask residents for contributions — before the first donation request, not after.
That includes more than a gala or a letter. A donation page on your website, a social media campaign, or an email appeal can count as soliciting, especially when you target people in a particular state.
There are exemptions, but they are narrow and they differ by state. Some religious organizations, organizations soliciting only their own members, and very small all-volunteer fundraisers below a state dollar limit may be exempt. Never assume you qualify — check the list for each state where you will raise money.
Registration is also not one-and-done. Most states require an annual renewal, often filed together with your Form 990 and financial information. Miss it, and you can face late fees, penalties, and in some states an order to stop fundraising until you are current.
Florida is a good example: most charities must register with the Department of Agriculture and Consumer Services before soliciting and renew every year. A few states, like Texas, have no general registration for ordinary charities — which is exactly why you check state by state instead of guessing.
The simple rule: get approved, then get registered in the states where you will ask for support, then keep both current every year.
— 501c3 Expert
We handle all your 501(c)(3) paperwork — nonprofits set up from start to finish, and Form 990s prepared every year.
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