Colorado Charity Registration and Nonprofit Fundraising

Colorado regulators pay close attention to charitable fundraising. Letters, email campaigns, social media appeals, grant requests, and online giving pages all receive treatment as solicitation once residents of the state receive the message. Boards that serve donors in several states often place Colorado near the top of the compliance checklist because oversight is active and centralized with the Secretary of State.

Donor Solicitation in Colorado

Registration expectations for Colorado fundraising

The Colorado Charitable Solicitations Act requires most charitable organizations that ask residents for contributions to register with the Secretary of State before outreach begins or before a charitable sales promotion starts. The law reaches mail, email, text, telephone, online appeals, and in-person requests, along with campaigns where a business advertises that a portion of sales supports a charity.

Registration runs through an online system, with annual renewal tied to the organization’s fiscal year. Many groups meet the annual financial reporting requirement by filing a copy of IRS Form 990 through the portal. Larger organizations submit audited or reviewed financial statements once revenue crosses statutory thresholds, while smaller organizations remain on a simpler filing path.

Colorado law also recognizes exemptions. Religious entities that fall within federal Form 990 filing exceptions for churches and integrated auxiliaries often qualify for a religious exemption. Small organizations with contribution levels below a modest amount, membership-based groups that solicit only members, and some public bodies use separate exemption claims. Boards in church and ministry settings frequently ask for help sorting each affiliated entity between registration and exemption.

Online giving and communication with Colorado donors

Donation buttons, peer-to-peer platforms, and email lists reach Colorado residents whether or not an office, staff, or physical presence exists in the state. Regulators focus on where donors live and which audience receives the appeal. A general “give now” page or crowdfunding effort often leads to registration once Colorado residents appear in donor records or once outreach targets the state through advertising, radio, or regional campaigns.

Many churches and nonprofits route contributions through third-party processors. Colorado still views the solicitation as activity by the underlying organization. Agreements with platforms, acknowledgement wording, and website language benefit from review with Colorado rules in mind so fundraising growth does not race ahead of registration status.

Events and campaigns in Colorado

Banquets, conferences, concerts, charity runs, and golf events in Colorado usually involve solicitation of local residents, sponsors, and businesses. Once organizers ask for gifts, sell sponsorships, or run auctions that support a charitable purpose, those campaigns sit under the same statute that covers direct mail and digital outreach. Organizations that tour through Colorado with fundraising appeals, or that highlight Colorado projects or partners in regional campaigns, often face the same obligations as local charities.

Work with professional fundraising consultants and paid solicitors also receives separate attention. Paid solicitors and many fundraising consultants register with the Secretary of State, file campaign notices, and follow contract rules before they contact Colorado donors on behalf of a charity. Boards often want a short summary of who handles filings, how contracts need to read, and which campaigns should trigger those extra steps.

Tax Issues for Colorado Fundraising

Income tax

Colorado income tax treatment for nonprofits lines up with federal recognition in most situations. Once an organization holds federal tax-exempt status, Colorado corporate income tax usually does not apply to core charitable, religious, educational, or health programs. Unrelated business activity in Colorado still raises questions, especially for retail operations, rental income, or joint ventures with for-profit partners that do not sit within the primary exempt purpose. Boards often ask for a brief review before expansion of business lines connected with Colorado donors or facilities.

Sales and use tax

Colorado allows charitable organizations to receive exemption from state-collected sales and use tax on purchases that support regular charitable functions and activities. The Department of Revenue issues a Certificate of Exemption once an organization meets criteria in state law and demonstrates federal tax-exempt status. Purchases qualify only when paid directly from organizational funds under detailed rules.

Sales by churches and charities receive different treatment. Sales that resemble ongoing retail trade often fall under Colorado’s sales tax system, while occasional events, some fundraising dinners, and specific school-related activities receive more favorable treatment. On top of state rules, many Colorado cities and counties run home-rule tax systems with their own exemption letters and procedures for charitable and religious entities. Finance teams planning thrift stores, bookstores, conference centers, or frequent merchandise sales in Colorado benefit from a coordinated review of state and local treatment before launch.

Property tax

Real and personal property used solely and exclusively for strictly charitable purposes, and not for private gain, qualifies for exemption from Colorado property tax. Property used as an integral part of a church, an eleemosynary hospital or licensed health-care facility, a school, or another institution with exempt status receives protection when use aligns with charitable, religious, or educational purposes.

Mixed use brings more complexity. Space leased to for-profit tenants, property held for investment, or facilities that support commercial operations often lose exemption in whole or in part, even when a nonprofit owner holds title. Churches, hospitals, and schools that plan Colorado building projects or campus expansions often request guidance on exemption applications, documentation of charitable use, and the effect of leases or joint ventures on property tax treatment.

Entity Types With Special Questions in Colorado

Churches

Churches and integrated auxiliaries that fall within federal Form 990 filing exceptions often qualify for a Colorado religious exemption from charitable registration. Religious entities that file a Form 990 generally register like other charities. Property used for worship and ministry generally receives strong protection under property tax statutes when used only for religious purposes. At the same time, Colorado sales and use tax rules still reach many purchases and many revenue-producing activities, so pastors and elders often want a clear picture of how building projects, bookstores, cafés, and conferences interact with state and local tax systems.

Religious nonprofits

Campus ministries, faith-based relief agencies, international mission organizations, and similar nonprofits with religious identity sit near churches but do not always share every exemption. Some qualify for religious treatment under the Colorado Charitable Solicitations Act. Others rely on ordinary charitable registration, especially when they file Form 990, employ professional fundraisers, or operate large public campaigns. Boards often review governing documents, program descriptions, and federal filings with counsel to decide which approach fits Colorado expectations and how that choice affects reporting, disclosures, and contracts with fundraisers.

Hospitals and health organizations

Nonprofit hospitals, health systems, and related foundations engage Colorado donors through capital campaigns, grateful patient programs, and recurring appeals. Property tax exemptions for nonprofit hospitals depend on ownership and use of facilities for strictly charitable purposes, and state summaries highlight that treatment. Gift shops, parking, food service, research partnerships, and leased clinic space often follow different tax lines than core inpatient and outpatient care. Boards look for alignment between Colorado property tax rules, sales and use tax obligations, and charitable registration for each affiliated foundation and support entity.

Educational institutions

Colorado schools, colleges, and universities, along with affiliated foundations and booster groups, frequently raise funds from alumni, parents, and friends who live in the state. Accredited educational institutions sometimes rely on exemptions under charitable solicitation law, while separate support organizations often maintain full registrations. Property used for classrooms and core educational activity tends to qualify for exemption, while residence halls, athletic venues, and leased commercial areas call for more careful analysis. Fundraising events, concessions, and bookstores also intersect with Colorado sales and use tax rules.

Next Steps

Colorado adds its own registration, tax, and exemption patterns to every regional fundraising plan. Leadership teams that pause for a focused Colorado review often gain stronger donor trust and fewer surprises from regulators.

For help aligning Colorado outreach with these rules, use the consultation form below and share a brief summary of your Colorado donors, events, and entities. A member of the team will follow up to schedule a private consultation with your leadership.