Key Takeaways:

  • Most charitable organizations must register with the Charities Bureau before soliciting funds.
  • Registration requirements and exemptions vary by state and organization type.
  • Filing Form CHAR410 and supporting documents is required in New York.
  • Religious, governmental, and educational entities are generally exempt from registration.
  • Ongoing compliance includes submitting annual financial reports (CHAR500).
  • Multi-state charitable solicitations often require registration in each state.
  • Fundraising through third parties or online platforms may trigger additional disclosure and registration requirements.
  • Penalties for noncompliance can include fines and revocation of charitable status.
  • Legal counsel can help navigate the charity registration process.

Are you wondering how to register a charity organization? In order to register an organization with the Attorney General's Charities Bureau, you must submit Form CHAR410, a registration statement, along with other documents, like a copy of your business's Certificate of Incorporation, bylaws, financial report (if the business is more than a year old), and a tax exemption letter from the IRS if applicable.

Who Must Register With the Charities Bureau?

Most of the charitable organizations operating in the state of New York are required to register with the Attorney General's Charities Bureau. These include organizations holding property for charitable purposes, engaged in charitable activities, or soliciting charitable contributions in New York.

New York Law defines the term charity in a broad manner to include a wide variety of activities relating to poverty, health, education, culture, and several other community services. The law however exempts certain types of charities, such as religious organizations, from the requirement of mandatory registration. If you feel that your organization is exempt from registration, you should submit Schedule E, a request for exemption. Upon receipt, the Charities Bureau will determine whether your organization is eligible for exemption.

Filing Requirements for Registration With the Charities Bureau

You must submit the following documents for registration with the Charities Bureau:

  • Registration statement - Form CHAR410
  • A copy of the organization's Certificate of Incorporation, constitution, or trust instrument
  • A copy of the business's bylaws or internal governing documents
  • If you have applied for federal tax exemption, a copy of the application in IRS Form 1023 or 1024
  • If your business has received tax exempt status, a copy of the IRS letter confirming same
  • A copy of the previous year's financial report if the organization is more than a year old.
  • If you solicit public contributions, a registration fee of $25

Organizations Exempted From registration

Following charity organizations are exempted from registration:

  • Religious organizations and houses of worship
  • Charity organizations operated by religious organizations
  • Membership organizations that do not seek public contributions
  • Parent-teacher associations
  • Government agencies
  • Educational institutions

Other organizations are exempt from registration based on their activities and solicitation of funds from the public. Schedule E, the exemption request form, contains a list of exempted categories of charity organizations.

Exceptions Based on Fundraising Thresholds and Activities

Some states offer exemptions from charity registration based on a nonprofit’s size or activity:

  • Revenue Thresholds: In many states, if a nonprofit raises less than $25,000 annually and does not compensate anyone for fundraising, it may be exempt.
  • Volunteer-Only Organizations: Nonprofits with no paid employees or fundraisers may also qualify for exemption in some jurisdictions.
  • Solicitation Type: Organizations that fundraise exclusively from members, or conduct minimal in-state solicitations, may not be required to register.

Even if your nonprofit believes it qualifies for an exemption, it’s often necessary to file an exemption request or notice with the relevant state authority.

Annual Filing Requirements for Registered Organizations

An organization registered with the Charities Bureau must file an annual financial report in Form CHAR500 along with a copy of the following documents, if applicable:

  • IRS Forms 990, 990-EZ, and 990-PF along with the relevant schedules
  • Audit report from an independent Certified Public Accountant

You must also pay the stipulated filing fees for submitting the documents.

Renewals and Updates to Registration

Annual renewals are typically required to maintain active charity registration status. Organizations must file by the deadline set by each state and include:

  • Updated financial information (e.g., IRS Form 990 or equivalent)
  • Renewal forms (like Form CHAR500 in New York)
  • Payment of annual renewal fees

Additionally, organizations must notify the Charities Bureau of material changes, such as:

  • A change in name, address, or leadership
  • Amendments to governing documents
  • Changes in charitable purpose or mission
  • Use of new fundraising professionals

Failing to update registration can lead to penalties, suspension, or revocation of registration privileges.

Collecting Money for a Friend's Treatment: Should You Register?

Sometimes, we may need to collect money to help a friend or neighbor suffering from an illness. Such collection does not amount to charity and is exempt from registration. However, the whole of the collected contributions must be used for the intended purpose.

You may designate up to three alternate beneficiaries if the collected funds cannot be completely used by or for the intended beneficiary. If you choose to designate an alternate beneficiary, you must file Form CHAR017 (Charitable Solicitation for the Relief of an Individual) with the Charities Bureau.

Registering Charitable Solicitations

Charitable solicitations and fundraising activities are regulated at the state level. In many states, it's mandatory to register a charitable nonprofit organization and any professional hired as counsel or consultant for the fundraising activity. Many states also require nonprofit organizations entering into a revenue sharing agreement with another organization to file a disclosure of such a commercial co-venture with the state. You should register with the state where you are soliciting donations.

Fundraising regulations vary from state to state. However, irrespective of the mode of solicitation your organization employs (website, email, social media, phone calls, text messages, postal service, personal requests, etc.) most of the states regulate the activity if it amounts to solicitation. It's a good idea to visit the website of the concerned state agency for up-to-date information on the filing requirements.

Often, more than one officer of the organization must sign the registration form, so you should start preparing the forms well before the filing deadlines. Many states require you to renew the registration in subsequent years. An increasing number of states are moving to online registration.

State-by-State Charity Registration Requirements

Charitable solicitation regulations are not federally standardized. Each state enforces its own registration and reporting laws. While some states require full registration and annual renewals, others may only mandate a notification of intent to solicit or are entirely exempt.

  • Registration States: Over 40 states require nonprofits to register prior to soliciting funds from residents. These include California, New York, Illinois, and Florida, among others.
  • Unified Registration Portal: Some states participate in the Multistate Registration and Filing Portal (MRFP), allowing nonprofits to file initial registrations and renewals in multiple jurisdictions via one system.
  • Exempt States: A few states such as Texas and Indiana generally do not require registration for charitable solicitation unless specific thresholds or activities apply.
  • Penalties: Noncompliance with state registration laws can result in late fees, penalties, and in some cases, a ban on future fundraising within that state.

Before launching a campaign, especially online or nationwide, review the registration requirements in each state where donations may be received.

Working With Fundraising Professionals and Commercial Co-Ventures

Charities that work with professional fundraisers, fundraising counsel, or engage in commercial co-ventures must navigate additional regulatory layers. Many states require:

  • Separate Registrations: Both the charity and the fundraiser may need to register independently with the state.
  • Written Contracts: States often require written, filed contracts between the charity and any outside fundraising entity.
  • Disclosure Statements: Fundraisers must disclose their role and whether contributions are tax-deductible. Some states also require donors to receive specific disclosures at the point of solicitation.
  • Commercial Co-Ventures: When a business advertises that proceeds will benefit a charity (e.g., "10% of proceeds go to X Foundation"), the arrangement typically must be disclosed to the state and include reporting on funds raised and disbursed.

Carefully vet any third-party fundraiser and consult legal counsel to ensure your charity registration and solicitation practices are compliant.

Frequently Asked Questions

1. Do I need to register my charity in every state where I fundraise?Yes, if you solicit donations from residents of a state, you typically need to register there—especially if using email, social media, or websites.

2. What happens if I don't register before fundraising?You may face fines, be ordered to cease fundraising, and risk damage to your organization's credibility and legal standing.

3. Can online donations trigger registration requirements?Yes. Even passive online donation capabilities (like a “Donate” button) may require registration in states where donors reside.

4. Are small nonprofits exempt from charity registration?Possibly. Many states exempt organizations raising under a specific threshold, but filing for exemption is often still required.

5. Do I need an attorney to register a charity?While not mandatory, legal guidance can streamline the registration process and ensure compliance with state and federal laws. You can find an experienced attorney on UpCounsel.

If you need help on how to register a charity organization, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.