Charitable Registration vs. 501(c)(3): Not the Same Thing
These two get confused constantly — and the confusion leads many nonprofits to fundraise without being registered.
501(c)(3) status
- Granted by the IRS
- Determines your federal tax treatment and whether donors can deduct gifts
- Obtained once, then maintained with an annual Form 990
Charitable solicitation registration
- Granted by each state, usually the Attorney General or Secretary of State
- Gives you permission to ask that state's residents for donations
- Must be obtained separately in each regulating state and renewed, usually every year
Why you usually need both
Your 501(c)(3) tells donors their gift is deductible. Your state registrations tell regulators you're allowed to ask. Having one doesn't satisfy the other — and you may need state registration even before your 501(c)(3) is approved.
Related service: Charitable Solicitation Registration →