There is a common misconception among nonprofits — that they only need to register in a state where they have collected above a certain dollar amount.
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States generally following the guidelines of the federal government when defining professional fundraisers, however some have tweaked the definitions to match their unique requirements.
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Sometimes an organization may decide to scale back on its fundraising and focus more on the states providing the majority of its donations and support.
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Accredited educational institutions, hospitals, religious organizations, member organizations are some of the sort of nonprofits that may be exempted from registration.
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The penalties vary by state and how aggressive and lucrative the nonprofit’s donation campaigns have been.
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