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Fundraising Compliance for Virtual, In Person, and Hybrid Events

Auctria
September 23, 2021

Fundraising Compliance for Virtual, In Person, and Hybrid Events

Virtual events and other online fundraising methods allow nonprofits to reach broader audiences. But most states have yet to confirm specific guidance for online fundraising, leaving organizations confused about how to ensure their event is compliant.

Learn best practices and insightful strategies that can help make your event both successful and compliant, including:

* 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.
* How to best manage your fundraising registrations and renewals.
* What resources are needed to manage compliance.

Auctria

September 23, 2021
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  1. © 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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  2. © 2012 - 2021 Harbor Compliance
    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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  3. © 2012 - 2021 Harbor Compliance
    10 Years, Over 40k
    Auction & Event
    Fundraisers 400 Million
    Dollars Raised

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  4. © 2012 - 2021 Harbor Compliance
    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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  5. © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    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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  6. © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    Solicitation = asking for donations
    Traditional forms of solicitation:
    ● Direct mail
    ● Phone calls
    ● Grant applications
    ● Emails
    ● Text to give
    ● Giving Days
    ● Events
    © 2012 - 2021 Harbor Compliance
    Do These Requirements Apply to Us?

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  7. © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    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
    © 2012 - 2021 Harbor Compliance
    How Do We Determine Where to Register?

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  8. © 2012 - 2021 Harbor Compliance
    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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  9. © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    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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  10. © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    ● 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?
    © 2012 - 2021 Harbor Compliance
    https://www.harborcompliance.co/in
    formation/charitable-gaming-license

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  11. © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    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
    © 2012 - 2021 Harbor Compliance

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  12. © 2012 - 2021 Harbor Compliance
    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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  13. © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    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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  14. © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    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.
    © 2012 - 2021 Harbor Compliance
    Regulators Are Researching Online, Too

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  15. © 2012 - 2021 Harbor Compliance
    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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  16. © 2012 - 2021 Harbor Compliance
    Communicate
    to your leadership teams why compliance should be a priority.
    © 2012 - 2021 Harbor Compliance
    Compliance Is a Nonprofit Best Practice

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  17. © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    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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  18. © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    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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  19. © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    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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  20. © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    What Does It Cost?
    State fees
    to register nationally come to $1,500 to $5,500 for most organizations.

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  21. © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    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
    © 2012 - 2021 Harbor Compliance

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  22. © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    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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  23. © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    Our Compliance Software Makes It Easy
    © 2012 - 2021 Harbor Compliance

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  24. © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    Stay in Touch With
    Auctria
    @auctria
    FB Group: Auction Team Talk
    Email: [email protected]
    Auctria demos weekly:
    auctria.com/webinars

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  25. © 2012 - 2021 Harbor Compliance
    © 2012 - 2021 Harbor Compliance
    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:
    © 2012 - 2021 Harbor Compliance
    Laurie Hochman
    Marketing Coordinator, Auctria
    [email protected]

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