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.
States generally following the guidelines of the federal government when defining professional fundraisers, however some have tweaked the definitions to match their unique requirements.
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.
Accredited educational institutions, hospitals, religious organizations, member organizations are some of the sort of nonprofits that may be exempted from registration.
The penalties vary by state and how aggressive and lucrative the nonprofit’s donation campaigns have been.
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