Adding a “Donate” button feels like a simple website upgrade. For state regulators, that same button often looks like a formal fundraising program that reaches into many states at once.
Most nonprofit leaders focus on mission, not multi-state filing rules. Yet more than forty states regulate charitable solicitation. Many expect organizations to register before asking their residents for gifts, and they treat online appeals much like letters, phone calls, or events.
The result is a gap. Your team sees a helpful way for supporters to give online. A regulator sees solicitation of their residents by an organization they do not yet have on file.
WHAT REGULATORS CARE ABOUT
State charity officials focus on three questions.
Who is asking their residents for money.
How those funds will be used.
Whether the organization follows their rules for registration, reporting, and disclosures.
They do not stop at traditional fundraising methods. A public “Donate” button, a recurring gift form, or a crowdfunding page often receives the same treatment as a mailed appeal. Once a resident of that state reaches your page and submits a gift, the oversight system has a connection to your organization.
WHY A DONATE BUTTON TRIGGERS LEGAL QUESTIONS
Online giving blurs state lines.
A supporter in your home state shares your donation link with friends across the country.
A board member promotes your donate page on social media.
A partner ministry posts your campaign in a newsletter that goes to several states.
From your side, those are healthy signs of support. From a regulator’s side, your organization is now asking their residents for contributions.
Some states expect registration as soon as a public website accepts gifts from their residents. Others look for a pattern of gifts or targeted outreach before they treat an organization as “soliciting” in that state. Rules change over time, exemptions differ, and agencies update their own internal guidelines. Without a focused review, leadership often has no clear picture of where registration already applies.
COMMON AREAS WHERE RISK GROWS QUIETLY
Out-of-state donors
Online giving almost always reaches donors outside your home state. A small number of gifts might feel minor. In several states, repeated or substantial gifts from residents trigger registration duties even when outreach started locally.
Crowdfunding and peer-to-peer campaigns
Birthday fundraisers, crisis drives, and “give day” campaigns send your donate link far beyond your usual list. Donors tag friends, those friends live in other states, and your organization receives contributions from places you never planned to reach. Regulators see a public request for money, not a private link among friends.
Email and social media
A newsletter with a “Donate now” link or a post that directs followers to your giving page often reaches subscribers spread across many jurisdictions. When a state sees repeated email or social media appeals to its residents, officials view your organization as an active solicitor, not a passive online presence.
Grants and workplace giving
Online grant portals and workplace giving platforms connect you with corporate donors, donor-advised funds, and payroll campaigns. Many of those intermediaries expect charities to hold registrations in the states where employees or donors live. When those systems flag a gap, questions reach your staff very quickly.
WHAT HAPPENS WHEN COMPLIANCE FALLS BEHIND
Once a state believes your organization solicits its residents without registration, several tools sit on the table.
Regulators send letters that demand an explanation, registration, and back reports.
Statutes in many states authorize fines and late fees for each year of unregistered activity.
Agencies issue orders that require you to stop fundraising in that state until everything is current.
Those direct penalties rarely tell the whole story. Internal time, legal fees, stress on staff, and tense board meetings often cost more than the underlying fines. Public databases that show an organization as “delinquent” or “not in good standing” stay online long after the crisis feels resolved inside the office. Donors, journalists, and grant makers search those databases before major gifts, and they form quick judgments about governance and trust.
Online platforms add another pressure point. Several states, including California, now regulate online fundraising platforms that serve their residents. Those platforms review charity registration status and pause donation tools for organizations that do not appear in required state records. A holiday campaign or crisis appeal loses momentum fast when the donate button no longer works.
WHY DIY GUIDES DO NOT SOLVE THE PROBLEM
Many nonprofits download a chart or article and try to work through registration on their own. These resources help raise awareness, yet they rarely fit the real complexity of a living organization.
A few examples.
Exemptions often sound broad, yet hide narrow conditions and hidden thresholds. Religious, educational, and small-charity exemptions differ from state to state. The wrong assumption about one word in a statute can leave years of online fundraising exposed.
Corporate structures vary. Parent entities, related foundations, fiscal sponsorships, and support organizations each raise different questions. A simple list rarely explains where one entity must register while another does not.
Deadlines, forms, and fees move constantly. States change portals, revise forms, and adjust penalties without much warning. Staff who try to manage registrations as a side project struggle to keep pace, especially when team members change.
Your board has fiduciary duties. Directors must show that they took reasonable steps to understand legal risk and respond. A patchwork, do-it-yourself approach often leaves no clear record of thoughtful review.
WHAT A TARGETED LEGAL REVIEW PROVIDES
A focused consultation with counsel experienced in charitable solicitation law works differently from a generic checklist.
You receive a clear picture of your online fundraising footprint. Counsel reviews where your donors live, which channels you use, and how your donate button fits within larger campaigns.
You see how specific states treat your current approach. The analysis covers strict states, threshold states, and places with limited or no registration rules, in light of your actual activity.
You receive a strategy that fits your risk tolerance and budget. Some organizations choose broad registration coverage. Others focus on key states tied to major gifts, grants, or events. Leadership receives a plan that matches available resources and board expectations.
You gain support when regulators or platforms ask questions. A prior relationship with counsel shortens response time and reduces stress when a letter, email, or platform notice arrives.
WHEN TO SCHEDULE A CONSULTATION
Certain moments call for legal guidance before the next step.
You plan to add or redesign a donate button or launch a new site.
Online revenue from out-of-state donors has grown, or leadership wants that growth.
You want to use crowdfunding, peer-to-peer campaigns, or paid digital ads that reach multiple states.
A grant maker, donor-advised fund, or workplace giving program asks about your registration status.
Your organization receives any outreach from a state agency about fundraising, filings, or compliance.
If any of these describe your situation, a short meeting with an attorney who focuses on nonprofit and charity registration law often prevents larger problems later.
NEXT STEP
If your organization already has an online donate button or plans to add one, consider a focused review before the next major campaign. Use the consultation form below to share your questions about registration, online fundraising, or governance.
An attorney from our team will review your information, look at how your online giving tools interact with state law, and help you decide on next steps that protect both your mission and your leadership.