Soliciting Funding for your USGenWeb Website
With the rising cost of web hosting, it is tempting to look at online solicitation as a way to raise those needed funds. But it is not as simple as putting a donation form on your website, then waiting for the money to flow in.
Currently, forty-one states require nonprofits to register BEFORE soliciting their residents, and twenty-five require a disclosure statement on a written solicitation, including a website if soliciting online. You must register in all forty-one states if you solicit online. Penalties for unlicensed solicitation vary by state; but can be severe.
Registration applications typically require at least:
- completing the jurisdiction's specific form,
- paying a filing fee,
- supplying supporting documentation including your organization's Form 1023 and/or the IRS Determination Letter,
- a copy of your IRS Form 990,
- a list of officers or directors and a copy of your bylaws.
Many states exempt certain groups from registration, including small charities that receive less than a certain amount of contributions annually; and most of our state/local projects would qualify for this exemption. However, while a few states require only a notice to the appropriate state official, most will require at least a one-time (OT) application for exemption, and some also require renewal on an annual basis. Most require annual reports even if they do not require annual renewals.
I have not personally researched the laws of every state, but have compiled a table of basic requirements from information available at Harbor Compliance. While I can't guarantee this is 100% accurate, it will give you an idea of what you will have to do before you can solicit donations to support your website. You can start your own research at National Council of NonProfits.
| State | Exempt if Donations Less Than | Registration Required | Annual Renewal Required | Minimum Registration Fee |
|---|---|---|---|---|
| Alabama | $25,000 | OT | N | - |
| Alaska | $5,000 | notice req'd | N | - |
| Arkansas | $25,000 | OT | N | - |
| California | - | Y | Y | $25.00 |
| Colorado | $25,000 | optional | N | - |
| Connecticut | $50,000 | OT | N | - |
| D.C. | $1,500 | Y | Y | See NOTE below |
| Florida | $25,000 | Y | Y | - |
| Georgia | $25,000 | auto exempt | N | - |
| Hawaii | $25,000 | OT | N | - |
| Illinois | - | Y | Y | $15.00 |
| Kansas | $10,000 | Y | N | - |
| Kentucky | - | Y | Y | - |
| Louisiana | - | auto exempt | N | - |
| Maine | - | ? | ? | ? |
| Maryland | - | Y | Y | - |
| Massachusetts | $5,000 | Y | Y | $150.00 |
| Michigan | $25,000 | OT | N | - |
| Minnesota | $25,000 | OT | N | - |
| Mississippi | $25,000 | Y | N | $54.00 |
| Missouri | - | Y | Y | $15.00 |
| Nevada | - | Y | Y | - |
| New Hampshire | - | Y | Y | $25.00 |
| New Jersey | $10,000 | auto exempt | Y | - |
| New Mexico | - | Y | Y | - |
| New York | $25,000 | OT | N | - |
| North Carolina | - | Y | Y | - |
| North Dakota | - | Y | Y | $25.00 |
| Ohio | $25,000 | Y | N | - |
| Oklahoma | - | Y | Y | $15.00 |
| Oregon | - | Y | Y | - |
| Pennsylvania | $25,000 | Y | Y | - |
| Rhode Island | $25,000 | auto exempt | N | - |
| South Carolina | - | Y | Y | $52.00 |
| Tennessee | - | Y | Y | $50.00 |
| Utah | - | Y | Y | $78.00 |
| Virginia | - | Y | Y | $130.00 |
| Washington | $50,000 | optional | ? | - |
| West Virginia | $25,000 | Y | Y | - |
| Wisconsin | $25,000 | auto exempt | Y | - |
| Fees required for state registrations (minimum) | $634.00 | |||
| Filing Fee for IRS Form 1023EZ ($600 for Form 1023) | $275.00 | |||
NOTE: In D.C., the fee for non-profit organizations that raise more than $1500 is $412.50.
Updated: 2 May 2019