Toolkit · Nonprofit

The Charitable Registration, Fundraising Contract, and Donor Disclosure Toolkit

26 U.S.C. § 501

Type
Toolkit
Jurisdiction
National
Date
2024-05-22
Topic
Nonprofit

Working instruments for charitable solicitation compliance. The registration set includes a multistate solicitation map, a filing tracker with a redaction rule, and a renewal calendar. The contract set includes professional fundraiser and commercial co-venture term sheets, a script approval form, and a point-of-sale disclosure template. The donor document set includes acknowledgment, quid pro quo, nondeductibility, and variance language drafted to be pasted directly into templates. The oversight set includes a board review agenda, a channel compliance audit, and a donor due diligence card. A campaign launch approval form, an incident response protocol, and an authority quick reference complete it.

The Charitable Registration, Fundraising Contract, and Donor Disclosure Toolkit

Nonprofit > Charitable Solicitation and Fundraising | Published 22 May 2024 - Updated 4 May 2026 | UpLaw - uplaw.us

How this toolkit is built

Fourteen instruments. Bracketed text is for completion. State charitable solicitation acts vary substantially — check the state's statute and current form before filing anything here.

Two rules organize all of it: you may spend what you spend, and you may not misdescribe it. Everything below is machinery around those two propositions.

Tool 1 — Solicitation Map

Organization: [ ] · Prepared: [date] · (Update annually and before any new campaign.)

Channel In use? States reached Registered?
Donation page on website ☐ All 50
Direct mail ☐
Email appeals ☐
Social media asks ☐
Events ☐ Host state + attendee states
Grant applications ☐
Paid solicitor calls ☐ Solicitor registered? ☐
Crowdfunding platform ☐ Written consent on file? ☐
Commercial co-venture ☐ Contract filed? ☐

⚠️ The trigger is where the donor is. The "passive website" argument has not worked for a long time.

Tool 2 — Registration Filing Tracker

State Registered Exempt? Exemption filing required? Renewal due Audit threshold Financial statement level Donor schedule redacted?
☐ ☐ ☐ ☐ none ☐ reviewed ☐ audited ☐

Filing package: ☐ Articles and bylaws ☐ Exemption determination — status under 26 U.S.C. § 501 ☐ Officer and director list ☐ Financial statements ☐ Annual return under 26 U.S.C. § 6033 ☐ Fundraiser contracts ☐ Fee

⚠️ Redact the donor schedule on every state filing. Blanket state collection of major-donor identities is facially unconstitutional — Americans for Prosperity Foundation v. Bonta, 141 S. Ct. 2373. File redacted even where a state's form has not been updated, and challenge a rejection rather than complying.

📌 Assign a named owner and a backup for renewals. The most common failure in this field is a lapse discovered by an outsider during due diligence.

Tool 3 — Professional Fundraiser Contract Term Sheet

# Term Required
1 Contributions payable to the charity, deposited in the charity's account Always — adopt even where not mandated
2 Scope: campaigns, channels, states ☐
3 Compensation, stated clearly ☐
4 Script and materials approved in writing before use; no changes without approval ☐
5 Accuracy covenant — no statement about the use of funds that is untrue or creates a false impression ☐
6 Registration and bonding representations, by state, with a maintenance covenant ☐
7 Point-of-solicitation identification as a paid solicitor, naming the charity ☐
8 Channel compliance — 16 C.F.R. Part 310 · 47 U.S.C. § 227 · 15 U.S.C. § 7704 — with suppression list transfer ☐
9 Donor data belongs to the charity; no use, retention, sale, or rental ☐
10 Campaign reports on a schedule permitting the charity's own filings ☐
11 Audit rights ☐
12 Immediate termination for misrepresentation, without cure ☐
13 Indemnity for regulatory penalties from the solicitor's conduct ☐
14 Insurance and bond confirmation ☐

Accuracy covenant language:

"Contractor shall not make, and shall not permit any person acting on its behalf to make, any statement regarding the use of contributions that is untrue or that creates a false impression, whether by affirmative statement, half-truth, or omission. Charity may terminate this Agreement immediately upon any breach of this provision, without opportunity to cure."

This tracks the standard of Illinois ex rel. Madigan v. Telemarketing Associates, 538 U.S. 600, which is the whole risk in this field.

Tool 4 — Commercial Co-Venture Term Sheet

☐ Amount per item, in dollars or a stated percentage — never "a portion" or "proceeds" ☐ Cap, if any, with a commitment to disclose it at the point of sale ☐ Start and end dates ☐ Guaranteed minimum, if any ☐ Charity's written approval of all advertising before use ☐ Trademark license — limited in scope, time, and manner; terminable on breach ☐ Post-campaign accounting with supporting records ☐ Payment deadline ☐ State filings: who files, where, by when ☐ Representation of compliance with every applicable co-venture statute ☐ Termination and correction rights if a disclosure proves inaccurate ☐ Indemnity to the charity

Point-of-sale disclosure language:

"For each [product] purchased between [start date] and [end date], [Company] will donate $[amount] to [Charity], up to a maximum total donation of $[cap]."

⚠️ The two failures generating nearly all enforcement are the undisclosed cap and the undefined percentage. Both are deceptive under 15 U.S.C. § 45 and state analogues — see Everything We Say Is True and Substantiating Advertising Claims.

Tool 5 — Script and Materials Approval Form

Campaign: [ ] · Vendor: [ ] · Channel: [ ] · States: [ ]

# Review item Approved
1 Solicitor identifies as a paid solicitor and names the charity ☐
2 No statement about the use of funds that cannot be substantiated ☐
3 No implied percentage or "most of your gift" language ☐
4 No urgency or scarcity claims that are untrue ☐
5 Purpose described accurately and consistently with the restriction language ☐
6 Nondeductibility statement included, if applicable — 26 U.S.C. § 6113 ☐
7 Variance language included for a restricted appeal ☐
8 Do-not-call and opt-out mechanics described ☐
9 No collection of card numbers by inbound-call scripts inconsistent with policy ☐
10 Materials retained with this approval ☐

Approved by: [name, title] · Date: [ ]

📌 Retain this form. The charity's exposure depends on what it knew and approved.

Tool 6 — Donor Acknowledgment Templates

A. No goods or services

[Charity], [address], [EIN] Thank you for your contribution of $[amount], received [date]. No goods or services were provided in exchange for this contribution. Please retain this acknowledgment; it is required to substantiate a charitable deduction under 26 U.S.C. § 170.

B. Quid pro quo — required for event tickets, auctions, raffles, tournaments, and premiums above the de minimis threshold

Thank you for your payment of $[total] on [date] for [event/item]. In exchange you received [description], with a good faith estimate of fair market value of $[value]. The amount deductible as a charitable contribution is limited to the excess of your payment over the value received: $[total − value]. (Required by 26 U.S.C. § 6115.)

C. Nondeductibility — every solicitation by an exempt organization not eligible for deductible gifts

Contributions or gifts to [organization] are not deductible as charitable contributions for federal income tax purposes. (26 U.S.C. § 6113.)

D. Variance language — every restricted appeal

"Contributions to this appeal will be used for [purpose]. If [purpose] is fully funded or becomes impracticable, [Charity] will apply contributions to other programs consistent with its charitable mission."

📌 Fix the templates, not the individual receipt. These failures are never isolated. See Charitable Giving and Philanthropy and The Charitable Giving and Philanthropic Planning Toolkit.

Tool 7 — Restricted Gift Register

# Appeal / gift Purpose as stated Amount raised Amount used Balance Variance language present? Review date
1 ☐

☐ Review annually and confirm each balance is being used as stated ☐ Where no variance power was reserved and the purpose is oversubscribed or impracticable: do not redirect. Seek donor consent, or relief from a court or the attorney general ☐ Insider-transaction exposure travels with fundraising abuse — 26 U.S.C. § 4958

Tool 8 — Channel Compliance Audit

# Item Status
1 Telefunder registered and bonded in every state called
2 Caller identifies self and charity promptly — 16 C.F.R. Part 310
3 Calling hour restrictions observed
4 Entity-specific do-not-call list maintained and honored
5 Consent records for autodialed calls and texts — 47 U.S.C. § 227 ⚠️ per-message damages
6 Revocation honored immediately, across channels
7 Email: accurate headers, honest subject lines, working opt-out, postal address — 15 U.S.C. § 7704
8 Mail: no invoice-mimicking appeals; unsolicited premiums not represented as creating an obligation — 15 U.S.C. § 45
9 Telemarketing framework applied — 15 U.S.C. § 6101 · 15 U.S.C. § 6102
10 Donor data inventory, privacy notice, vendor data terms — see Data Privacy and Security
11 Rented or exchanged donor lists reviewed

⚠️ Charitable status is not a channel exemption. This is the most expensive assumption in the field.

Tool 9 — Campaign Launch Approval Form

Campaign: [ ] · Launch date: [ ] · Owner: [ ]

☐ Registration confirmed in every state the campaign reaches ☐ Exemption filings current where applicable ☐ Fundraiser or co-venturer registered and bonded; contract filed where required ☐ Script and materials approved in writing (Tool 5 attached) ☐ Point-of-sale or point-of-solicitation disclosure language approved ☐ Variance language included if the appeal is restricted ☐ Acknowledgment and quid pro quo templates ready for this campaign's gift types ☐ Nondeductibility statement included if applicable ☐ Channel consent and suppression mechanics confirmed ☐ Platform written consent on file, if a platform is used ☐ Reporting deadlines calendared, including campaign financial reports ☐ Board approval obtained for the contract

Approved: [name, title, date]

Tool 10 — Board Review Agenda

Fundraising is a governance function. Put these on the agenda annually.

☐ Registration status by state, with renewal dates and the named owner ☐ Any lapse, late filing, or state inquiry in the past year ☐ Restricted gift balances and confirmation of use as stated ☐ Fundraiser and co-venturer contracts — approved, filed, and performing ☐ What the organization says about the use of funds, and whether it can be substantiated ☐ Acknowledgment and quid pro quo templates — reviewed at least once ☐ Annual return under 26 U.S.C. § 6033 reviewed before filing; donor schedule redacted on state copies ☐ Who owns the donor list under each vendor contract ☐ Insider-transaction review — 26 U.S.C. § 4958 ☐ See Nonprofit Formation and Governance and Forming and Operating a Nonprofit

Tool 11 — Donor Due Diligence Card

☐ Look up registration in your state — public, free, one minute ☐ Read the annual return — program versus fundraising versus administration; executive compensation; related-party transactions ☐ Ask a caller: "Are you a paid solicitor, and who employs you?" They must answer ☐ Never give a card number to an inbound caller. Hang up and give directly ☐ Read co-venture fine print for the cap ☐ Get the acknowledgment if you intend to deduct ☐ Be skeptical of urgency, sound-alike names, and post-disaster appeals from new entities ☐ Do not ask for the percentage. Ask what the organization accomplished last year — see Village of Schaumburg v. Citizens for a Better Environment, 444 U.S. 620, Secretary of State of Maryland v. Joseph H. Munson Co., 467 U.S. 947, and Riley v. National Federation of the Blind of North Carolina, 487 U.S. 781 ☐ If something was misrepresented, see Responding to Fraud, a Scam, or Financial Exploitation and Consumer Fraud and Financial Exploitation

Tool 12 — Incident Response Protocol

Incident First moves
Unregistered solicitation discovered Stop soliciting in the state · register immediately · disclose the lapse if asked · expect a late fee
Solicitor misrepresented the use of funds Terminate under the accuracy covenant · notify states where the campaign ran · correct the record with misled donors · preserve the script, contract, and approvals
Co-venture claim inaccurate Correct at the point of sale immediately · quantify the shortfall · pay it · voluntary correction is treated very differently from one that follows a subpoena
Acknowledgments wrong Issue corrected acknowledgments for the period · fix the template
Restricted appeal oversubscribed Do not redirect · donor consent, reserved variance power, or relief from a court or the attorney general
State demanded the unredacted donor schedule Cite Americans for Prosperity Foundation v. Bonta, 141 S. Ct. 2373 · challenge rather than comply
Attorney general inquiry Respond promptly, in writing, through counsel · preserve everything · see Administrative Law
Crowdfunding fraud suspected Preserve the campaign page and messages · report to the platform · ordinary fraud law applies, including 18 U.S.C. § 1341 and 18 U.S.C. § 1343

Tool 13 — Disaster Appeal Checklist

☐ Confirm registration before launching; check emergency registration provisions ☐ Include variance language — oversubscription is the norm ☐ Describe the use of funds in terms you can substantiate a year later ☐ Coordinate with responders already operating ☐ Monitor for sound-alike organizations using your name or a variant ☐ Warn donors, in your own appeal, to verify registration and avoid irreversible payment methods ☐ Track restricted balances from the outset, not after the appeal closes

Tool 14 — Authority Quick Reference

Constitutional framework: Schaumburg, 444 U.S. 620 · Munson, 467 U.S. 947 · Riley, 487 U.S. 781 · Madigan, 538 U.S. 600 · Americans for Prosperity Foundation, 141 S. Ct. 2373 Exempt status and reporting: 26 U.S.C. § 501 · § 6033 · § 4958 Donor disclosure: 26 U.S.C. § 170 · § 6113 · § 6115 Deception: 15 U.S.C. § 45 Channels: 15 U.S.C. § 6101 · 15 U.S.C. § 6102 · 16 C.F.R. Part 310 · 47 U.S.C. § 227 · 15 U.S.C. § 7704 Fraud: 18 U.S.C. § 1341 · 18 U.S.C. § 1343

Tool 15 — Crowdfunding and Platform Sheet

A. Charity fundraising on a platform ☐ Every ordinary obligation applies — registration, acknowledgment under 26 U.S.C. § 170, quid pro quo statements under 26 U.S.C. § 6115, and the co-venture rules if a business is involved ☐ Confirm the platform holds your written consent to list you; several states now require it ☐ Confirm transmission timing and escrow practices ☐ Confirm which fees are deducted and how they are disclosed to donors ☐ Confirm who issues the acknowledgment — you or the platform — and that it satisfies the statute ☐ Confirm refund handling ☐ Confirm who owns the donor data — see Data Privacy and Security

B. Advising an individual raising money for a person ☐ Generally not a charitable solicitation and largely unregulated ☐ Ordinary fraud law still applies — 18 U.S.C. § 1341 · 18 U.S.C. § 1343 ☐ Donations are not deductible to the donor ☐ Funds may be income to the recipient depending on the facts — see Business and Self-Employment Tax ☐ ⚠️ A lump sum can destroy means-tested benefits worth more than the campaign raises. Raise this before the campaign ☐ Say in the appeal what happens to any surplus ☐ Name the organizer, the beneficiary, and how funds will reach them

Tool 16 — Twelve-Point Annual Audit

# Item Status Owner
1 Registration current in every state where you solicit
2 Exemption filings current where required
3 Donor schedule redacted on all state filings
4 Audit threshold checked against current revenue
5 Acknowledgment and quid pro quo templates reviewed and in use at every event
6 Nondeductibility statement in every solicitation, if applicable
7 Variance language in every restricted appeal
8 Restricted balances reviewed against stated purposes
9 Fundraiser and co-venturer contracts board-approved, filed, performing
10 Scripts and point-of-sale language approved in writing
11 Channel consent and suppression records verified
12 Donor data practices and vendor contracts reviewed

📌 Items 1 and 5 account for most enforcement contact in this field — a lapsed registration and a receipt that does not say what the statute requires. Neither is a hard problem; both are ownership problems.

Tool 17 — Related Practice Areas That Intersect Fundraising

Fundraising problems rarely arrive alone. When one appears, screen these adjacent areas.

If the issue involves Also read
A donor's deduction, a bequest, or a donor-advised fund Charitable Giving and Philanthropy · The Charitable Giving and Philanthropic Planning Toolkit
Board duties, conflicts, or exemption maintenance Nonprofit Formation and Governance · Forming and Operating a Nonprofit · Applying for Tax-Exempt Status
A church, synagogue, mosque, or religious ministry Religious Organizations
A deceptive claim in an appeal or a co-venture Everything We Say Is True · Substantiating Advertising Claims · Consumer Protection Law
A donor who was defrauded Consumer Fraud and Financial Exploitation · Responding to Fraud, a Scam, or Financial Exploitation
Donor lists, platforms, or vendor data handling Data Privacy and Security
A state agency inquiry, denial, or registration dispute Administrative Law
Tax treatment of receipts, payroll, or unrelated business income Business and Self-Employment Tax
Street solicitation, permits, or a public-space dispute Planning a Protest and Responding to Police Action
The field's constitutional framework, in narrative form Ask Before You Ask · Charitable Solicitation and Fundraising · Registering to Fundraise and Running a Compliant Campaign

📌 The most common cross-over in practice is a fundraising problem that turns out to be a governance problem — an unapproved contract, an unreviewed script, or a restricted balance nobody tracked. Start with the board minutes.

Related Documents