Tennessee Charity Registration and Nonprofit Compliance

Tennessee regulates charitable fundraising through the Charitable Solicitations Act, overseen by the Secretary of State’s Division of Charitable Solicitations and Gaming. Charitable organizations which seek support from Tennessee residents generally register with the Division before solicitation activity begins and renew each year through the online system.

Churches, ministries, schools, hospitals, and community nonprofits also encounter the Tennessee Nonprofit Gaming Law, sales and use tax rules for exempt entities, property tax standards for religious and charitable property, and franchise and excise guidance for unrelated business activity. Leadership teams which plan Tennessee donors, events, and facilities in a coordinated way place the organization on stronger footing with both the Secretary of State and the Department of Revenue.

Donor Solicitation in Tennessee

Registration expectations

The Charitable Solicitations Act covers requests for contributions made to Tennessee residents by mail, phone, electronic communication, or personal contact. Charitable organizations which plan public fundraising in the state register with the Division before appeals and then submit annual renewals with updated organizational information and financial data. Typical filings include Form 990, a summary of contributions and expenses, and any required financial statements.

Several categories receive exemption from registration, including bona fide religious institutions, certain educational institutions, licensed hospitals and nursing homes, volunteer fire and rescue organizations, specified community fairs, government entities, and persons who solicit solely for those exempt bodies. A separate exemption route exists for charities which do not raise or receive gross contributions from the public in excess of fifty thousand dollars during a fiscal year and meet other conditions. Even in an exemption setting, leaders still weigh growth plans, use of professional fundraisers, and multi-state campaigns before relying on relief.

Recent legislation increased the gross revenue trigger for audited financial statements from five hundred thousand dollars to one million dollars, with organizations between those levels facing less intensive financial statement requirements. Registration and renewal fees currently sit at ten dollars through June 30, 2025, with higher late fees for delinquent reports. Mid-sized charities with Tennessee donors often adjust audit planning, board calendars, and accounting engagement letters in response.

Online giving and digital outreach

Donation pages, recurring giving tools, email newsletters, text campaigns, livestream appeals, and social media promotions aimed at Tennessee residents fall within the same statutory definition of solicitation as traditional mailings and calls. Out-of-state organizations which highlight Tennessee in campaigns, segment Tennessee addresses in databases, or see a steady pattern of contributions linked to Tennessee contact information move under Tennessee registration expectations even without a physical office.

Many churches and nonprofits rely on third party giving platforms, church management systems, or peer fundraising tools. Donation flows, organization names, physical addresses, and disclosure language on those platforms work best when they match Secretary of State records and describe any professional fundraisers accurately. Email and receipt templates for Tennessee donors often mention the registered legal name, principal office, and a brief description of charitable purpose in language consistent with the registration file.

Events and campaigns in Tennessee

Dinners, luncheons, auctions, concerts, banquets, 5K races, golf outings, and conferences in Nashville, Memphis, Knoxville, Chattanooga, and smaller communities all function as solicitation when proceeds support a charitable program. Ticket revenue, sponsorships, auctions, and donation appeals during programs feed directly into contribution totals which support registration and financial statement thresholds. Leadership which tracks event revenue by state, not solely by program, receives clearer signals about when Tennessee filings move to a new tier.

Games of chance raise separate questions. The Tennessee Nonprofit Gaming Law allows eligible 501(c)(3) and 501(c)(19) organizations to hold one annual gaming event, such as a raffle or bingo session, once the General Assembly has approved the event and the organization has an active charitable registration. Rules cover application timing, prize limits, required returns of gaming proceeds to charitable use, audited financial statements for larger events, and strict recordkeeping. Informal raffles without gaming approval sit close to Tennessee lottery law, so boards often review raffle plans carefully before tickets reach donors.

Tax Topics for Tennessee Nonprofits

Income tax, franchise, and excise

Tennessee imposes franchise and excise taxes on most business entities, yet nonprofit organizations generally fall outside those taxes when they operate within exempt purposes. The Department of Revenue’s manual explains that nonprofit organizations remain exempt from franchise and excise tax unless they conduct unrelated trades or businesses which produce unrelated business taxable income or otherwise fall under federal income tax. Business tax on gross receipts from sales of tangible personal property or services still receives attention, although exemptions in the manual cover certain nonprofit amusement and civic activities.

Boards often align federal Form 990 descriptions, Tennessee charitable registration filings, and any franchise and excise analysis so revenue streams and related entities appear consistent across systems. New ventures, leases, or joint projects with for-profit partners often lead to a brief franchise, excise, and business tax review before contracts move forward.

Sales and use tax

Tennessee sales and use tax rules draw a clear line between sales to exempt entities and sales by those entities. Churches, schools, hospitals, nursing homes, volunteer fire departments, many 501(c)(3) organizations, and several other nonprofit categories qualify for exemption on purchases once they receive a sales and use tax exemption certificate from the Department of Revenue. The exemption applies only when the invoice or charge goes directly to the exempt organization and staff use an organization check or credit card rather than personal payment with later reimbursement.

Regular sales of taxable goods or services by nonprofits often remain subject to sales tax unless a specific statute removes those receipts from the base. Fundraising events, thrift operations, concessions, and online merchandise stores each receive their own analysis. Many organizations build a Tennessee sales tax grid which marks each revenue stream as taxable or exempt and then train staff and vendors to follow the same rules each time.

Property tax

Tennessee law exempts real and personal property owned by religious, charitable, scientific, and nonprofit educational institutions when the property is occupied and used purely and exclusively for one or more exempt purposes. The State Board of Equalization’s property tax exemption manual emphasizes three elements for exemption applications: ownership by a qualifying institution, occupancy by that institution or another exempt institution under a limited rent arrangement, and actual use for an exempt purpose.

Campuses with mixed use receive closer review. Property segments leased to commercial tenants, used for unrelated business activity, or left unused for extended periods often receive partial or no exemption, while sanctuaries, classrooms, clinics, and mission-focused program space receive stronger protection. Local assessors administer applications and renewals, so organizations often prepare clear use descriptions, diagrams, and supporting documents before meeting with county staff.

Entity Types with Special Questions in Tennessee

Churches and religious ministries

Many churches and religious ministries qualify for exemption from Tennessee charitable registration, particularly when they fall within the statute’s definition of religious institution and do not file Form 990. At the same time, use of professional solicitors, separate charitable corporations, or broad public campaigns often leads to registration even when core worship activity remains exempt.

Religious bodies also depend on property tax exemption for sanctuaries, fellowship halls, parsonages, and related land, along with sales and use tax relief for purchases once the organization holds an exemption certificate. Separate corporations for schools, camps, counseling centers, or outreach programs often sit on a different footing for charitable registration, gaming events, and tax treatment. Many churches and ministries face special exemption questions in Tennessee once multiple entities, facilities, and donor streams appear on the organizational chart.

Faith based and community nonprofits

Faith based charities, rescue missions, campus ministries, neighborhood organizations, and other community nonprofits which seek donations from Tennessee residents usually appear in the Division’s charitable registration records or on the exemption list. Leaders in this group track revenue thresholds, audit triggers, and any use of professional fundraisers or gaming events so filings stay current.

Boards often focus on governance and fundraising policies which align with Tennessee filings, including gift acceptance policies, donor acknowledgments, co-venture agreements, and written procedures for raffles or other gaming activity. Careful coordination across leadership, development, and finance reduces risk of public complaints or state enforcement during busy campaign seasons.

Hospitals and health organizations

Nonprofit hospitals, health systems, behavioral health providers, and community clinics in Tennessee rely heavily on property tax exemption for clinical facilities and on sales and use tax relief for qualifying purchases. Many systems sponsor separate foundations which register as charitable organizations, file Form 990 with supporting financial statements, and disclose any professional fundraising relationships for capital campaigns and grateful patient programs.

Educational institutions

Independent schools, colleges, universities, and related foundations in Tennessee benefit from broad property tax and sales and use tax provisions when facilities and purchases support educational missions, subject to Board of Equalization and Department of Revenue oversight. Alumni associations, booster clubs, and affiliated fundraising bodies which solicit beyond a narrow campus community often register with the Division or request an exemption, and they review event plans carefully when raffles or other gaming elements enter the picture.

Next Steps

Tennessee links charitable solicitation rules, exemptions, gaming approvals, sales and use tax treatment, property tax standards, and franchise and excise guidance in ways which influence nearly every structural or fundraising decision for organizations with Tennessee supporters. A new statewide campaign, an annual gaming event, or a property purchase in the state often shifts filing duties, audit expectations, or exemption analysis.

Use the consultation form below to outline Tennessee donors, events, online campaigns, gaming plans, property, and related entities connected with your organization. A member of the team will follow up to schedule a private consultation and propose practical options for Tennessee charity registration, gaming compliance, tax planning, and governance support tailored to your mission and risk tolerance.