What it is
Fundraising compliance means following the laws and reporting expectations that apply when you ask people for money or run an event to raise it. Depending on your plans, that can include raffle and gaming rules, charitable solicitation registration, and how donations are acknowledged and receipted.
These rules usually come from several levels at once. Federal tax rules, state charitable solicitation laws, and local city or county ordinances can each play a part. A bake sale, an online campaign and a raffle may each raise different questions.
This site is an independent educational directory, not a legal or tax advisor. Think of this page as a map of topics to explore, such as raffle laws by state, 501c3 fundraising rules and fundraising compliance for nonprofits, so you can ask better questions of the people who can advise you.
Compliance is not only a nonprofit concern. Parents, teams, clubs, churches and individuals who fundraise for a cause may also face rules, especially when they collect money from the public or offer prizes.
How it’s traditionally been approached
Many organizations have handled compliance by checking their state attorney general or secretary of state website, since these offices often oversee charitable solicitation. Others contact their city or county clerk about local permits for events.
For raffles and similar games, groups have often looked up their state's charitable gaming rules first. Some states limit who may run a raffle, how tickets are sold, or what must be reported, and some restrict raffles altogether. Because these rules vary and change, groups commonly confirm the current requirements before each event.
For donation receipts, nonprofits have traditionally sent written acknowledgments that describe the gift. Whether a donor can deduct a gift depends on the recipient's tax-exempt status and current IRS rules, so organizations often encourage donors to confirm with a tax professional. Many groups also rely on volunteers, board members or an accountant to keep records.
How the right fundraising consultant may help
The right fundraising consultant may help you sort through these questions before you commit time and money to an event. Some consultants are familiar with common compliance steps and can point you toward the offices, permits and professionals you may need to talk to. They are not a substitute for an attorney or tax professional, but they may help you plan with fewer surprises.
A first conversation is often a discussion of your goals, your organization's status, your audience and the kinds of fundraising ideas you are considering. The consultant may ask whether you are a registered nonprofit, where you plan to fundraise, and whether prizes, tickets or online giving are involved.
Good questions to ask include: Have you worked with groups like mine? How do you approach checking state and local rules? When would you recommend I involve a lawyer or accountant? How do you keep campaigns aligned with my organization's mission? A thoughtful consultant should be comfortable saying what falls outside their role.
The bigger picture
Worrying about whether you are doing things correctly can take the joy out of fundraising. Taking time to understand the rules up front may bring some peace of mind, protect the trust of your supporters and help you focus on the cause you care about.
Compliance also touches your finances and your volunteers' well-being. Clear records and plans can reduce stress for everyone involved. If the pressure of running a cause is weighing on you, caring for your own health matters too, and Providers.plus can help you find wellness resources.
Keep in mind
- Raffle, gaming and charitable-gambling laws vary by state and often by city or county, so check current state and local rules and any required permit before planning one.
- Charitable solicitation registration requirements differ by state, so confirm whether your group needs to register where you plan to fundraise.
- Whether a donation is tax-deductible depends on the recipient's tax-exempt status and current IRS rules, so confirm with a tax professional.
- A consultant may offer helpful guidance, but results are never guaranteed, and legal or tax questions belong with a qualified attorney or tax professional.
Guides in this topic
Fundraising consultant types
Frequently asked questions
What are the basic fundraising ideas compliance rules I should know?
The basics usually involve three areas: whether your activity needs a permit (such as a raffle), whether you must register to solicit donations, and how you acknowledge gifts. Requirements vary by state and locality and can change, so check current rules with the relevant offices. A qualified attorney or tax professional can advise on your specific situation.
Are raffles legal for fundraisers?
It depends on where you are and who is running the raffle. Some states allow raffles for certain charitable groups, often with conditions or permits, while others restrict them more tightly. Check current state and local rules and any required permit before planning one.
Do raffle laws differ by state?
Yes. Raffle laws by state can differ on who may hold a raffle, how tickets may be sold, what reporting is required and whether a permit is needed. Cities and counties may add their own rules, so confirm the current requirements locally.
Do I need to register to fundraise as a charity?
Possibly. Charitable solicitation registration requirements vary by state, and some states ask organizations to register before asking residents for donations. Contact the state office that oversees charities, often the attorney general or secretary of state, to learn what applies to you.
Are donations always tax-deductible?
No. Deductibility depends on the recipient's tax-exempt status and on current IRS rules. Donors should confirm with a tax professional, and organizations should not assume a gift is deductible without checking.
How can a fundraising consultant help with compliance?
A consultant may help you plan fundraising ideas, identify questions to ask and point you toward the right offices and professionals. They generally do not provide legal or tax advice, so you may still need an attorney or accountant for those questions.
Educational resource. Fundraiser.biz shares general information and connects people with independent fundraising consultants. It is not professional advice. Talk with a qualified professional about your own situation.