Maryland Charity Registration and Nonprofit Compliance

Maryland gives donors, journalists, and regulators clear visibility into charitable fundraising through registration, disclosure rules, and public files maintained by the Secretary of State. Fundraising that reaches Maryland residents through mail, email, events, or online giving links back to this system, even when leaders work from offices in other states.

Boards, executive directors, development staff, and church or ministry leaders often want a focused Maryland plan before national campaigns grow, before outside fundraising help joins a project, or before property and tax questions reach county officials.

Donor Solicitation in Maryland

Registration expectations for Maryland fundraising

Maryland expects most organizations that solicit residents for charitable gifts to register with the Secretary of State before fundraising. Charities that receive at least twenty five thousand dollars in contributions or work with a professional solicitor file a full Registration Statement for Charitable Organizations, often called COR 92, with fees that increase in steps as contribution levels rise.

Organizations with lower contribution levels file a short Exempt Organization Fund Raising Notice rather than a full registration, then renew each year with updated financial information. Even this lighter filing keeps Maryland records current and signals that leadership pays attention to state expectations.

Religious, educational, and membership based entities sometimes qualify for statutory exemptions or lighter treatment, yet exemption decisions turn on structure, audience, and fundraising methods, not labels alone. Leadership teams often ask for a map that places each related entity in the correct Maryland category, especially when a church, school, or hospital foundation operates beside a parent organization that holds separate registration.

Professional solicitors and fund raising counsel register in their own right, file contracts, and often post bonds before working with Maryland donors. Agreements with vendors work best when those duties appear in writing and when both sides understand how Maryland treats scripts, campaign reports, and fees.

Online giving and communication with Maryland supporters

Donation pages, recurring gift options, peer campaigns, and email lists reach Maryland residents every day. Once names with Maryland addresses appear regularly in contribution reports, or once campaigns target Maryland through geographic filters or regional media, regulators treat that activity as solicitation inside the state, even when headquarters sit somewhere else.

Written solicitations and receipts sent to Maryland residents must include a specific disclosure statement drawn from the Maryland Solicitations Act. The statement informs supporters that documents and information submitted under the Act are available from the Secretary of State for the cost of copies and postage, and must appear in a clear and conspicuous way.

Many churches and nonprofits route Maryland donations through third party processors or church giving platforms. Agreements, privacy statements, and acknowledgment emails work best when wording lines up with registration or exemption status and when disclosure language stays current for Maryland purposes.

Events and campaigns in Maryland

Banquets, charity runs, concerts, conferences, and similar events in Maryland involve solicitation of guests, sponsors, and the wider community. Ticket sales, sponsorship packages, auctions, and program appeals sit under the same charitable framework as mail and online campaigns, especially when event materials reach residents throughout the state.

Multi party events raise extra questions. When a Maryland church, school, or hospital foundation partners with a national ministry or charity, leadership needs clarity on which entity sits on file with the Secretary of State, which entity appears on receipts, and which entity stands behind any professional fundraiser registration. Early planning helps avoid confusion once donors or regulators review Maryland records.

Tax Issues for Maryland Nonprofits

Income tax

Maryland corporate income tax treatment generally follows federal recognition. A corporation that qualifies under section 501(c)(3) and operates within its charitable, religious, educational, or health mission receives relief from Maryland corporate income tax on mission aligned revenue, while unrelated business income still sits under separate reporting rules.

Revenue from rentals, advertising, joint ventures, and fee based services often prompts closer review. Leadership teams with Maryland operations in those areas often want an early analysis so filings, contracts, and budgets match long term plans.

Sales and use tax

Sales and use tax rules in Maryland create a separate layer of planning. The Comptroller issues exemption certificates to qualifying nonprofit charitable, educational, and religious organizations, as well as selected other nonprofit categories. Organizations present the certificate when purchasing taxable goods or services for organizational use, and vendors record the certificate number on sale records.

Exemption for purchases does not erase all sales tax exposure. Maryland law exempts certain sales by churches and some other nonprofits, for example sales for general purposes of the church, yet many ongoing retail activities still require collection and remittance of tax. Thrift stores, bookstores, frequent online merchandise sales, and camps with merchandise lines often sit inside this space. Finance teams benefit from a written list that separates revenue treated as exempt from revenue treated as taxable retail activity.

Property tax

Property tax exemptions depend on both ownership and use. Maryland law exempts real property that is necessary for and used exclusively for charitable or educational purposes that promote general welfare, along with property used for public religious worship, parsonages, and convents under separate provisions.

To receive exemption for a tax year, an organization must own the property before July 1 and file an application with the State Department of Assessments and Taxation or the appropriate local office by early September, supported by documentation about ownership and use. Mixed use campuses that include leased space, investment property, or commercial ventures receive closer review, and partial exemptions appear often in those settings.

Entity Types With Special Questions in Maryland

Churches

Churches in Maryland pay close attention to property and sales tax relief, along with charitable registration questions for outreach that reaches beyond core congregations. Some church activity falls outside registration requirements, yet related corporations for schools, counseling centers, media work, or community programs often register and file full annual reports. Sanctuaries, parsonages, and education buildings often fit within property exemptions, while leased space and investment property raise separate issues.

Religious nonprofits

Faith based charities, campus ministries, mission agencies, and relief organizations with Maryland supporters often share church values yet move through the general charitable framework. Many register with the Secretary of State, include Maryland disclosure language on written appeals, and apply for sales tax exemption certificates. Leadership teams often request a chart that shows registration status, disclosure wording, and tax treatment for each affiliate so staff handle Maryland work in a consistent way.

Hospitals and health organizations

Nonprofit hospitals, health systems, and related foundations rely heavily on Maryland property tax provisions and charitable registration rules. Hospital campuses pursue exemption for land and buildings used for health and charitable purposes, while medical office buildings, parking structures, and leased clinic space sometimes fall under partial exemption or full taxation. Foundations that run grateful patient programs, capital campaigns, and special events register as charitable organizations and follow Maryland disclosure rules for written solicitations.

Educational institutions

Independent schools, colleges, universities, and supporting foundations in Maryland rely on tuition and strong fundraising from families and alumni. Classroom buildings and core academic facilities often receive property tax relief, while residence halls, athletic complexes, and leased commercial areas draw closer review. Institutions also watch solicitation licensing, Maryland disclosure language, and audit thresholds that require a financial review once contributions reach set levels and a full audit once contributions reach higher levels.

Next steps

Maryland links charitable registration, disclosure language, tax exemptions, and property rules in ways that shape decisions about online appeals, events, and long term projects. Leadership teams that bring these pieces together for Maryland often see fewer surprises from donors, grantmakers, and regulators.

For guidance tailored to your Maryland footprint, use the consultation form below to describe your donors, events, property, and related entities connected with this state. Our team will follow up to schedule a private consultation with your leadership.