CHAPTER TWENTY-FOURState Fundraising Law

The solicitation of charitable contributions in the United States involves practices that are recognized as being forms of free speech protected by federal and state constitutional law. Thus, there are limitations on the extent to which fundraising for charitable, educational, scientific, religious, and like organizations can be regulated by government. Nevertheless, nonprofit organizations in the United States face considerable regulatory requirements at the federal, state, and local levels when they solicit contributions for charitable purposes. The purpose of this chapter is to summarize this body of law.1

The process of raising funds for charitable purposes is heavily regulated by the states. At this time, all but four states have some form of statutory structure by which the fundraising process is regulated.2 Of these states, 39 have formal charitable solicitation acts.

§ 24.1 STATE REGULATION IN GENERAL

The various state charitable solicitation acts generally contain certain features, including:

  • A process by which a charitable organization registers or otherwise secures a permit to raise funds for charitable purposes in the state ...

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