Fundraising Compliance for Virtual, In Person, and Hybrid Events

© 2012 - 2021 Harbor Compliance
Fundraising Compliance
for Virtual, In Person
and Hybrid Events
Presented by:
Sharon Cody, J.D. and Laurie Hochman

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Introduction to Harbor Compliance
Harbor Compliance provides services and software to help
executive teams and boards manage compliance.
We have a proven track record of success in all stages and aspects of charitable solicitation
compliance including registrations, exemptions, extensions, renewals, corporate
qualifications, and registered agents.
YOUR PRESENTER:
Sharon Cody, J.D.
Partnership Manager
717-431-9162 (direct)
[email protected]
Harbor Compliances is not an accounting or legal firm
and does not provide tax, financial, or legal advice.

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10 Years, Over 40k
Auction & Event
Fundraisers 400 Million
Dollars Raised

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Learning Objectives
Which traditional and online fundraising activities trigger
registration and reporting obligations.
What additional laws apply when the event includes charitable
gaming.
How compliance helps build trust with donors and sponsors.
What resources are needed to manage events.
What resources are needed to manage compliance.

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Charitable Solicitation Compliance
From the Internal Revenue Service
Many states have laws regulating the solicitation of funds
for charitable purposes. These statutes generally require
organizations to register with a state agency before
soliciting the state's residents for contributions, providing
exemptions from registration for certain categories of
organizations. In addition, organizations may be required
to ﬁle periodic ﬁnancial reports. State laws may impose
additional requirements on fundraising activity involving
paid solicitors and fundraising counsel.
“

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Solicitation = asking for donations
Traditional forms of solicitation:
● Direct mail
● Phone calls
● Grant applications
● Emails
● Text to give
● Giving Days
● Events
Do These Requirements Apply to Us?

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Remember charitable solicitation:
● Occurs regardless of whether a donation is received
● Occurs where the donor is located Emails
● Requires a review of rules in all 41 states
● May require registration in multiple states or nationwide
How Do We Determine Where to Register?

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41 Require charitable
solicitation registration
State Requirements
Charitable solicitation registration
and disclosure statement
Charitable solicitation registration
Disclosure statement
State Charitable Solicitation Requirements
25 Require a disclosure
statement

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Solicitation Also Includes:
● Fundraising counsel and professional solicitors
● Professional solicitors
● Cause marketing campaigns / Commercial Co-Ventures
Special registration and reporting requirements may apply to:
● Auctions
● Raﬄes
● Games of chance
Additional state and/or local registration and reporting may apply to:

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● Of the host state/province, and locality
● Of each state/province where event participants are located
* See: https://www.harborcompliance.com/information/charitable-gaming-license
Charities Need to Research the Laws
Where Do We Need to Register?
https://www.harborcompliance.co/in
formation/charitable-gaming-license

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Raffles and Auctions
The following may be banned, or
may require additional permits:
● Alcohol, tobacco and cannabis
● Firearms
● Cash prizes and 50/50s
● Credit card purchases of raffle tickets
● Advertising of raffles
● Raffles themselves

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1 Register or ﬁle an
exemption in all 41 states.
2 Don’t accept online contributions from
states in which you’re not registered.
OR
Two Practical Approaches to Online Fundraising

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Supporters Are Researching Before Donating
“Before Giving to a Charity . . .
Find out if the charity or fundraiser
must be registered in your state by
contacting the National Association
of State Charity Oﬃcials.”
From the Federal Trade
Commission Website:

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92%
of regulators indicated that they regularly conduct internet research on nonproﬁts.
Source: “State Regulation and Enforcement in the Charitable Sector,” Urban Institute and Columbia Law School, September 2016. Web.
Regulators Are Researching Online, Too

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State Fundraising Disclosure Requirements
Take advantage of the opportunity to win trust and
boost donations: Use charitable solicitation disclosures
as an opportunity to market your nonproﬁt.

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Communicate
to your leadership teams why compliance should be a priority.
Compliance Is a Nonproﬁt Best Practice

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Event Management
Tools Auctria streamlines everything from the ﬁrst donation to
the last receipt and all the bidding in between
● Donation request on the event website
● Open text boxes on website
● Footer on the event website
● Disclosures on system generated emails
● Continue to build trust with custom messaging that is
in accordance with compliance requirements
Communicate with Transparency

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Event Management
Best Practices ● Before the event goes live
○ secure auction donations with solicitation form
and letter
○ sell sponsorships
● During the event fundraiser
○ sell tickets, merchandise, raﬄes
○ bidding online, in the room or hybrid
○ donations and paddle raise
○ close out
● After the event fundraiser
○ send out thank you and receipts and statements
○ post on the website how much was raised and
where the funds are going
○ maintain a donation form for post-event donations
Event Website as a Microsite Before, During &
After Event

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What Does It Take to Register?
1
Research
● Registration status
● Application forms, fees, and
supporting documents
● Other state prerequisites
2
Apply
● Mail, fax, and online
applications
3
Monitor
● Process times vary from a
week to several months
● Follow up with states to
ensure approval
4
Renew
● Track renewal dates
● File renewal applications
● Stay current with legislative
changes
Take Action!
Review how your organization manages compliance.
If you haven’t registered where required, develop a plan to become compliant.

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What Does It Cost?
State fees
to register nationally come to $1,500 to $5,500 for most organizations.

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What Does It Take to Manage Compliance?
Time to manage
renewals
Files for copies of licenses
and applications
Spreadsheet of registration
numbers, statutes, and
due dates
Calendar system for
deadlines and reminders
Time to prepare disclosure
statements
Research to track
legislative and
administrative changes

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Our Managed
Compliance Solution
Fully manage each step of the process
Tracking software for reporting
Flat-rate pricing per state
Expert team with a dedicated Client
Success Manager
Take Action!
Reach out to us to discuss how we can partner with
your organization!

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Our Compliance Software Makes It Easy

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Stay in Touch With
Auctria
@auctria
FB Group: Auction Team Talk
Email: [email protected]
Auctria demos weekly:
auctria.com/webinars

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Contact us!
Questions & Answers
Sharon Cody
Partnership Manager, Harbor Compliance
717-431-9162
[email protected]
Contact us by email to schedule a time to speak or
send additional questions to:
Laurie Hochman
Marketing Coordinator, Auctria
[email protected]

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Fundraising Compliance for Virtual, In Person, and Hybrid Events

Fundraising Compliance for Virtual, In Person, and Hybrid Events

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