Lesson 10 of 11
State charitable registration and exemptions
Federal exemption does not cover state obligations. Two things usually need attention at state level.
Charitable solicitation registration
Most states require an organisation to register with the state charity regulator before asking residents for donations, with annual renewals and financial reporting. Online fundraising can trigger registration in multiple states, so review where you are actively soliciting.
State tax exemption
Some states grant income, sales or property tax exemption automatically on the strength of the IRS determination letter. Others require a separate application. Sales tax exemption in particular is often separate and limited to purchases for exempt purposes.
Want help with the paperwork?
You can incorporate and apply for exemption yourself using the steps in this course. If you would rather have support, Gullia Filing prepares and files your nonprofit incorporation, supplies compliant bylaws and conflict of interest policy, and obtains your EIN.