Who we serve…

Clearly Compliant works primarily with 501(c)(3) and (c)(4) nonprofit organizations as defined by federal law.  As a reminder, federal law determines tax exemption and deductibility.  Nonprofit status is determined by state law.  Most states require nonprofit organizations to register prior to fundraising.

What triggers the need to register? That is different in each state!  For some states it is the mere solicitation of funds, while in others it is the receipt of funds.  Some states have thresholds with the number of donors triggering the need to register.  Other states, like New York, consider any on-line donation capability as solicitation triggering the requirement for registration.  Registration triggers are unique to each state, and can be complex to evaluate, and critical to monitor.  Additionally, as nonprofits face increased financial scrutiny, state laws are continuously being assessed and re-visited.  Clearly Compliant works with a legal consultant to continuously monitor changes in state law and commits to communicating this information to clients in easy-to-understand detail.

Who is exempt from charitable solicitation registration?  Again, this differs state by state.  Common exemptions for many states include churches, religious organizations, educational institutions, hospitals, organizations who solicit only through membership, and organizations with gross contributions of less than $25,000 in a given fiscal year.