Internet fundraising is growing into a powerful tool for charitable organizations. As Allan Pressel of CharityFinders illustrated at Seton and Associates’ October seminar, a clear and effective website can help raise more funds, lower fundraising costs, attract in-kind donations, build capacity, track donor demographics, recruit staff and volunteers, develop long-term relationships with donors, increase across-the-board participation among event attendees, members, planned gifts and e-advocacy, and motivate people to support the organization immediately. However, using the internet also requires compliance with state solicitation laws. In California, most internet solicitations will fall within the purview of “solicitations for charitable purposes,” which require registration and the filing of an annual report with the California Attorney General. Unless otherwise limited by a disclaimer on your website, it is conceivable that donations will not be restricted to one state’s residents. That your website will reach donors from all over the country is feasible. Having to register with each state’s attorney general’s office can be a cumbersome process. With that in mind, the National Association of State Charity Officials (NASCO) along with the National Association of Attorneys General has organized an effort to create the Unified Registration Statement (URS) to consolidate the information and data requirements of states that require the registration of nonprofit organizations performing charitable solicitations within their jurisdictions. Currently, 39 jurisdictions require registration. As states move toward developing specific laws these guidelines are the conservative approach to ensuring donations from the web are handled appropriately.

If you would like more information about Internet Fundraising, please email Seton & Associates at fundraising@setonlawgroup.com to schedule a meeting.