Top 6 Benefits Of Registering Proactively

Kim O'Brien
Posted on August 14, 2017 by Kim O'Brien in Fundraising and Grants, Nonprofit Compliance.

Take the proactive approach to compliance

Sure, you know that working with a compliance provider can help streamline operations for your nonprofit. But a proactive approach is worth so much more than that. As the old adage goes, an ounce of prevention is worth a pound of cure! See the top six reasons you should register proactively:

1. Earn Donor Trust

Believe it or not, donors do care that the organizations they give to are doing all they can to be transparent about fundraising activities. The rise of charity rating websites gives credence to the fact that donors expect accountability from the organizations they give to (and the internet has made it simpler than ever for prospective donors to investigate organizations prior to giving). But earning donor trust doesn’t have to be a roadblock. Contact us for solutions to keep your nonprofit on the path to compliance.

2. Operate Legally and Efficiently

Did you know 45 states enforce some type of regulation related to fundraising? Chances are, all nonprofits will encounter some type of registration requirement for their solicitation activities at one point or another. Organizations that aren’t registered anywhere are gambling with their public image. And if they’re caught fundraising illegally, penalties and fines can swiftly follow. Thankfully, there’s a better way. A simple call or email to Harbor Compliance can set your organization on the path to compliance.

3. Positive Brand Image

You might not have considered it, but registering for charitable solicitation is a huge branding opportunity. Today, many organizations in the nonprofit sector are clamoring to come up with the next big viral marketing campaign. In addition to promoting your brand, don’t overlook the value of good, old-fashioned public trust. Reputation is one of the most valuable currencies out there. A great way to garner positive attention is to diligently meet state requirements and be able to proudly demonstrate your good standing where appropriate.

When your organization registers for charitable solicitation, it joins the ranks of the most trustworthy groups out there. It engenders trust from donors and sets your organization apart from the crowd. Compliance can and should be a badge of honor. The requirements, while complex, present an opportunity to demonstrate how serious your organization is about protecting its donors and ensuring professional conduct.

4. Requirements Are Here To Stay

If you’re waiting for fundraising requirements to go away, don’t. Fundraising registration requirements have existed for decades. Although many attempts have been made to reduce the complexity of these registration requirements, none have been successful. Organizations that are waiting for a simpler registration process to appear are just inviting penalties in the meantime. It’s only a matter of time until corrective action is brought against them.

5. Registration Is The Law

Charitable solicitation registration requirements are law and, as such, should not be taken lightly. Since registration is generally required prior to soliciting funds, the best results are always achieved by being proactive. Regardless of solicitation activities, states often have separate standards that apply when donations are actually received. Some states, like California, require registration within 30 days of receiving assets. Other states consider “repeated” and “substantial” gifts from a state enough to trigger registration. This gray area causes headaches for charities of all types and sizes. It’s best to review your organization’s fundraising footprint and decide on a proactive registration strategy.

6. Nationwide Registration Erases Uncertainty

Nationwide compliance is a license to fundraise without inhibition. It provides peace of mind to fundraisers and opens doors to future campaigns no matter what venue or format you’d like to pursue. Additionally, many grant applications and other sources of funding can only be applied for after the charitable registration has been completed. Having these registrations in place beforehand allows groups to nimbly respond to grantmakers’ requests and avoid disqualification.

Has your nonprofit mission considered some of the six benefits above? We can help! It’s never too late to implement a compliance plan into your fundraising efforts. Harbor Compliance is dedicated to helping nonprofit organizations maintain compliance with federal, state, and local government licensing requirements. Contact us today to get started on the path toward peace of mind!


© 2012 - 2020 Harbor Compliance. All rights reserved. Harbor Compliance does not provide tax, financial, or legal advice. Use of our services does not create an attorney-client relationship. Harbor Compliance is not acting as your attorney and does not review information you provide to us for legal accuracy or sufficiency. Access to our website is subject to our Terms of Use and Service Agreement.