Out Of State Charitable Contributions For Churches And Nonprofits
Technology has provided great things for the world which has also helped churches and nonprofit organizations obtain charitable contributions much easier. There are now easily accessible online donation platforms, for people and organizations to easily make a charitable contributions to anywhere they please.
If your church or nonprofit organization solicits donations from another state other than your home state, you may be required to register your nonprofit in those states. There are 39 different states which have instituted this requirement, the odds are in your favor that your nonprofit will need to register with most states.
The definition of solicit has new meaning with the adoption of company websites. Nonprofit websites, allow for online solicitation of funds 24 hours a day, seven days a week.
It is important for your organization to review each states definition of “solicitation”. Some of the more common definitions include phone calls, emails, radio advertisements, and direct mail. New broadened definitions may include, AdWords, Facebook ads, Yelp advertisements, text messaging and so on.
As church insurance brokers, we work with many different churches and nonprofit organizations. We are constantly on the lookout, on how to protect and help our clients manage their liability and property risk.
As many churches and nonprofits have needed to adapt their organization to deal with COVID-19, this has presented new challenges and opportunities. Instead of churches just reaching their local communities, the pandemic has opened the doors to reaching a broader audience from around the world.
How Do Churches And Nonprofits Verify Which States Require Them To Register?
To help churches and nonprofits who receive charitable contributions from other states, we have put together a list of items for you to complete. Having a file created ahead of time, will help streamline your processes as your church files with each state.
- Log into your online payment account, and verify which states you are receiving charitable contributions. We recommend reviewing your account monthly, if not weekly depending on the volume of funds your organization receives.
- Reach out to each state for which charitable contributions are being received, and inquire if they require you to register with them or not. The National Association of State Charity Office provides a complete list of contact information for each state government. Phone numbers and email addresses are provided for each state.
- Obtain the needed documentation for your church or nonprofit organization to register with each state. Each state will have their own requirements, but this list should get you well on your way:
- A completed state registration form
- Copy of your churches or nonprofits most recent Form 990
- A copy of your articles of incorporation and bylaws
- Complete List of your board of directors and officers to include names and titles if applicable
- Payment of the state’s registration fee. Cost varies by state
- Explanation of how you are collecting charitable contributions from out of state sources
- States require your organization to register on an annual basis. We recommend establishing a reminder, to renew and pay your annual registration fee. This will help you avoid late fees and additional paperwork in the future.
Which States Do Not Require Registration For Out Of State Charitable Contributions?
The National Association of State Charity Office, currently advises the following states do not require registration from organization receiving charitable contributions from their state.
- Arizona
- Idaho
- Iowa
- Indiana
- Montana
- Nebraska
- Nevada
- South Dakota
- Texas
- Vermont
- Wyoming
As rules and laws are constantly changing, we recommend if your organization receives funds from these states, to regularly inquire if any changes have been made to their registration requirements.
Your church or nonprofit should also verify, if a disclosure statement is required to be provided to individual donors by these states.
If your church or nonprofit is involved in the following services; religious institution, representing group involved with public safety such as fireman and police officers. Some states have included exemptions based on the type of nonprofit.
Ensure you look over all the documentation and maintain these for your files.
Church And Nonprofit Insurance Agency
It is important to work with an insurance agency that specializes in your particular industry. Many insurance agents “sell insurance”, but very few specialize in the church and nonprofit organization space.
When you partner with an insurance agency whose primary focus is helping churches and nonprofits, you have someone who understands your organization as a whole.
We are not here to just get the next deal, we are a true partner as we seek out ways to help our clients.
Integrity Now Insurance Brokers has partnered with the top church insurance providers and nonprofit insurance companies. This allows us the flexibility to keep our markets competitively priced, and to obtain the needed insurance coverages.
We offer an extensive range of comprehensive policies, including church building insurance coverage, commercial auto insurance for nonprofits, workers’ compensation insurance, church property insurance, church general liability insurance, ministry insurance, and more to safeguard the ministries across Washington, Arizona, Nevada, Colorado, Ohio, Texas, and California.
Give us a call or complete our online church quote form.
