by David Harrison, Senior Accountant, CPA, JD

Nonprofits are held to strict reporting standards. For instance, your organization is required to annually file Form 990 with the IRS to preserve your tax–exempt status, among other requirements. But reporting isn't limited to the federal level. Most states have their own laws regulating charitable solicitations. Registration requirements are designed to increase transparency and improve public trust in your nonprofit.

As of this article, 41 states and the District of Columbia require nonprofits to register if they want to conduct solicitation activities. These registrations must be renewed on an annual basis and include specific supporting documentation. The nine states that don't currently require registration are Delaware, Iowa, Idaho, Indiana, Montana, Nebraska, South Dakota, Vermont and Wyoming. Several others — including Arizona, Louisiana, Missouri and Texas — mandate that organizations register if they're engaged in certain activities or if they engage professional fundraising advice.

This state-by-state approach has resulted in a crazy quilt of reporting requirements for charities that operate on a national or regional basis. Although state laws often are similar, even small differences can make your job difficult. For this reason, advice from a CPA is recommended when filing financial statements and tax forms.

What constitutes "solicitation" for registration purposes? It includes such established activities as direct mail, phone calls, emails and in-person requests for donations. Newer solicitation forms may include "Donate Now" buttons on websites and social media platforms or crowdfunding activities. Using such web-based communications means that solicitations now effectively cross state lines, even when you aren't specifically targeting out-of-state donors. This greater reach means you usually need to register in multiple states.

Auditors need to verify specific items: What are they? webinar on Jan. 7 at 11 a.m. Review uniform guidance applications to single audits, specific compliance regulations, applicable internal control requirements, and more. Cost: Free. Presented by VonLehman CPA & Advisors. Register

Lunch and Learn: Being a Good Follower webinar Jan. 11 from noon to 1 p.m. Leadership Johnson County Board President Brad Coy will define the role of a follower and the importance of being a coachable follower for the success of your organization. Cost: $10. Register

Savvy ways to land DAF gifts in 2021 webinar on Jan. 28 from 2-3:15 p.m. Learn how to encourage donations from these funds in marketing messages and fundraising appeals, and how to inspire larger gifts over time. Cost: Free. Presented by Chronicle of Philanthropy. Register

Ethical storytelling for nonprofits and philanthropy prerecorded webinar. Learn how to meaningfully interview and portray people who have experienced trauma. The session also presents questions to ask yourself before writing about vulnerable communities. Cost: Free. Presented by Nonprofit Quarterly. Watch

Remaking the Economy: COVID 19, Recovery, and the Black Community prerecorded webinar. How do race, gender, and class intersect amid the health and economic crisis that is COVID-19? Cost: Free. Presented by Nonprofit Quarterly. Watch

Trusted Mentors is looking for mentors to serve adults striving to stay housed or out of prison. All mentors receive quality training and ongoing support from professional staff to ensure overall success. Average commitment is six hours a month for a year. Register