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.

Transcript

1. © 2012 - 2021 Harbor Compliance Fundraising Compliance for Virtual, In Person and Hybrid Events Presented by: Sharon Cody, J.D. and Laurie Hochman
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) scody@harborcompliance.com Harbor Compliances is not an accounting or legal firm and does not provide tax, financial, or legal advice.
3. © 2012 - 2021 Harbor Compliance 10 Years, Over 40k Auction & Event Fundraisers 400 Million Dollars Raised
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.
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. “
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?
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?
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
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:
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
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
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
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:
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
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.
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
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
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
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.
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.
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
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!
23. © 2012 - 2021 Harbor Compliance © 2012 - 2021 Harbor Compliance Our Compliance Software Makes It Easy © 2012 - 2021 Harbor Compliance
24. © 2012 - 2021 Harbor Compliance © 2012 - 2021 Harbor Compliance Stay in Touch With Auctria @auctria FB Group: Auction Team Talk Email: hello@auctria.com Auctria demos weekly: auctria.com/webinars
25. © 2012 - 2021 Harbor Compliance © 2012 - 2021 Harbor Compliance Contact us! Questions & Answers Sharon Cody Partnership Manager, Harbor Compliance 717-431-9162 scody@harborcompliance.com Contact us by email to schedule a time to speak or send additional questions to: © 2012 - 2021 Harbor Compliance Laurie Hochman Marketing Coordinator, Auctria hello@auctria.com