Pennsylvania Charity Registration and Nonprofit Compliance

Pennsylvania takes charitable oversight seriously. The Solicitation of Funds for Charitable Purposes Act and related rules place fundraising under the Bureau of Corporations and Charitable Organizations in the Department of State, with additional enforcement authority in the Office of Attorney General. Charities that solicit in Pennsylvania normally register before asking for contributions and keep that registration current through the BCO-10 and related filings.

Churches, ministries, schools, hospitals, and community nonprofits feel this structure most acutely when Pennsylvania donors, events, or property become significant. A careful Pennsylvania plan pairs charitable registration with tax and property strategies that respect the state’s “purely public charity” standards.

Donor Solicitation in Pennsylvania

Registration expectations

The Solicitation of Funds for Charitable Purposes Act covers requests for contributions made by any method to support a charitable purpose. Charitable organizations that solicit Pennsylvania residents register before solicitation and renew through the BCO-10 Charitable Organization Registration Statement, with financial statements and Form 990 or BCO-23 attached.

Two exemptions draw the most attention. First, bona fide duly constituted religious institutions and integral ministries that qualify for the church filing relief from Form 990 sit outside the registration duty. Second, institutions of purely public charity with annual contributions under twenty five thousand dollars and program service revenue under five million dollars receive relief, so long as no one receives compensation primarily for solicitation. Hospitals, certain educational institutions, veteran and first responder groups, libraries, and similar organizations fit other narrow exemptions when they meet detailed criteria.

Registration fees scale with contribution levels. Recent guidance shows a fifteen dollar fee for contributions at or below twenty five thousand dollars, one hundred dollars for twenty five thousand one to under one hundred thousand, one hundred fifty dollars for one hundred thousand to under five hundred thousand, and two hundred fifty dollars for contributions at or above five hundred thousand. Financial statement expectations also rise with fundraising. Contributions between one hundred thousand and two hundred fifty thousand require at least a compilation from an independent accountant, contributions between two hundred fifty thousand and seven hundred fifty thousand require a review or audit, and contributions of seven hundred fifty thousand or more require an audit.

Pennsylvania’s legislative intent stresses public protection and full disclosure of identities, fundraising relationships, and financial information. Filings feed the state’s public charity database, which donors, media, and counterparties review before significant support or partnerships. Late or incomplete filing invites penalties and attention from Charitable Trusts and Organizations staff.

Online giving and digital outreach

The Act treats solicitation broadly. A public donation page, email campaign, text appeal, crowdfunding effort, or social media drive aimed at Pennsylvania residents sits in the same legal bucket as a letter or phone call. Once development staff track regular contributions tied to Pennsylvania addresses or target Pennsylvania audiences in digital campaigns, regulators view that activity as solicitation in the Commonwealth regardless of corporate domicile.

Many organizations route online gifts through third party processors and giving platforms. Those tools influence how names appear on public receipts, which entity receives funds, and what donors read about tax treatment and registration. Pennsylvania compliance works best when donation flows, disclaimers, and thank you templates line up with BCO-10 filings and any use of professional solicitors or fundraising counsel.

Events and campaigns in Pennsylvania

Banquets, breakfasts, concerts, races, conferences, and capital campaigns in Pennsylvania all involve solicitation when proceeds support a charitable purpose. Ticket sales, sponsorships, auctions, and pledge segments during programs build directly into the registration and reporting thresholds that the BCO tracks as “gross annual contributions,” including proceeds from special events.

Partnerships with Pennsylvania businesses introduce charitable sales promotion rules, because promotions where a seller advertises that purchases benefit a charity attract both registration and contract scrutiny. Professional solicitors and fundraising counsel that plan or conduct campaigns for compensation must register in their own right and file copies of contracts and post-campaign financial reports. Organizations that rely on telemarketing firms, direct mail vendors, or digital fundraising agencies treat Pennsylvania as a priority jurisdiction during contract review.

Tax Topics for Pennsylvania Nonprofits

Income tax

Once an organization qualifies for federal exemption under section 501(c)(3), Pennsylvania generally treats mission related income as exempt from corporate net income tax, subject to “purely public charity” principles. Unrelated business income, such as recurring commercial rentals or advertising, still triggers state corporate income reporting that parallels federal Form 990-T analysis.

Boards that steward Pennsylvania donors often treat income tax review and charitable registration as a single project. Consistent descriptions of programs, relatedness of revenue, and governance structures across BCO-10, Form 990, and any corporate filings reduce friction with both the Department of State and the Department of Revenue.

Sales and use tax

Pennsylvania’s Tax Reform Code exempts sales of taxable property and certain services to institutions of purely public charity that hold an exemption order from the Department of Revenue. Regulations explain that the exemption applies to purchases billed directly to the exempt organization, including office supplies, fundraising supplies, utilities, vehicles, food, and furnishings, with narrow exceptions.

Sales by nonprofits receive different treatment. Regular retail activity and ongoing merchandise sales often require collection and remittance of sales tax, while some limited fundraising events receive more favorable handling. Leadership teams frequently build a Pennsylvania matrix that marks each revenue stream as taxable or exempt from sales tax, tied to the organization’s purely public charity status and exemption letter.

Property tax

Article VIII, section 2(a)(v) of the Pennsylvania Constitution authorizes exemption for institutions of purely public charity, and statutory provisions exempt churches and houses of worship, along with certain charitable, educational, and hospital property. Courts apply the Hospital Utilization Project (HUP) test and Act 55 to decide whether an institution qualifies, then examine whether each parcel of property advances that charitable purpose.

Ownership alone does not secure exemption. Property that supports unrelated commercial activity, sits idle, or competes with taxable businesses often attracts real estate tax even when the owner holds purely public charity status. Churches and ministries still receive strong protection for sanctuaries and associated land, yet mixed use campuses, leased space, and joint ventures deserve careful review before budgets rely on full exemption.

Entity Types with Special Questions in Pennsylvania

Churches and religious ministries

Bona fide religious institutions and integral ministries that qualify for 990 church filing relief fall outside Pennsylvania’s charitable registration requirement, yet the Act still applies to their fundraising conduct and relationships with professional solicitors. These organizations also work with property tax rules for worship facilities and parsonages and with sales tax rules for building projects, supplies, and limited fundraising sales.

Separate corporations for schools, camps, counseling centers, community outreach, or media ministry often sit outside the core church exemption and register on their own. Many churches and ministries face special exemption questions in this state once they hold multiple entities, online giving platforms, or significant Pennsylvania donor bases.

Faith based and community nonprofits

Faith based charities, rescue missions, campus ministries, neighborhood organizations, and other 501(c)(3) entities that solicit in Pennsylvania typically register with the Bureau through the BCO-10 and file the required annual report. Leaders in this space follow the same audit thresholds and fee schedule as other charities and often seek recognition as institutions of purely public charity for sales and property tax purposes.

Hospitals and health organizations

Nonprofit hospitals, health systems, and community health centers in Pennsylvania live inside the purely public charity framework for both sales and property tax exemption. Courts and assessors apply the HUP test to hospital systems and related entities, and recent Supreme Court decisions reinforce those standards. Hospital foundations and auxiliaries that solicit from the public register and report as charitable organizations, follow the contribution based audit thresholds, and disclose relationships with related entities through BCO-10 filings.

Educational institutions

Independent schools, colleges, universities, and related foundations often qualify as institutions of purely public charity for sales and property tax and hold exemptions from charitable registration when they meet statutory conditions. Alumni associations, booster clubs, and affiliated fundraising arms that reach beyond narrow institutional communities often register on their own and comply with Pennsylvania’s financial statement and disclosure rules.

Next Steps

Pennsylvania links charitable registration, detailed public disclosure, audit thresholds, sales tax exemption, and strict property tax standards in a way that shapes almost every strategic decision for organizations with activity in the Commonwealth. A shift in online outreach, an ambitious capital campaign, or a new facility often pushes a charity into a new tier or triggers attention from state staff.

Use the consultation form below to describe your Pennsylvania donors, campaigns, property, and related entities. A member of the team will follow up to schedule a private consultation and outline practical options for Pennsylvania charity registration, exemption analysis, and governance planning that match your mission, risk tolerance, and growth plans.