Online Fundraising Compliance: 9 FAQs for Nonprofits (2026 Update)
Back in 2018, Morweb partnered with Harbor Compliance to publish a guide helping nonprofits navigate online fundraising laws. Since then, digital fundraising has evolved dramatically — along with state regulations, donor expectations, and privacy requirements.
This 2026 update refreshes that original post with the most current and verifiable information on U.S. charitable solicitation and online fundraising compliance.
Why Fundraising Compliance Still Matters
Before your nonprofit accepts donations online, it’s critical to ensure compliance with state charitable solicitation laws. Noncompliance can lead to fines, restrictions, and a loss of donor trust.
At Morweb, we build nonprofit websites that make compliance simpler — with built-in tools for transparency and disclosure. This updated guide references data from Harbor Compliance, and other organizations to help you stay legally compliant and build donor confidence.
Question 1: Where is registration required?
Answer:
Charitable solicitation is governed by state law, and the obligation to register usually depends on where your donors live, not where your organization is based.
If your nonprofit accepts online donations from multiple states, you may need to register in each of those jurisdictions.
As of 2025, more than 40 U.S. states and the District of Columbia require nonprofits to register before soliciting charitable contributions (Harbor Compliance – Charitable Registration Guide).
To stay safe, many nonprofits choose to register wherever they actively solicit donations or display a “Donate” button accessible to residents of regulated states.
Question 2: How much does it cost to register?
Answer:
Registration fees vary by state and are often based on annual revenue. Typical filing fees range from $0 to about $100 per state, with additional administrative costs depending on your scope of fundraising.
On average:
- Smaller nonprofits (under $100K in revenue): ~$1,200–$1,500 total nationwide
- Larger nonprofits ($1M+): ~$5,000+ annually across all states
While the cost itself is modest, the time required to research, file, and maintain renewals can be significant — which is why many nonprofits use compliance management tools or professional services (Harbor Compliance – Charitable Registration: Navigating the Complexities).
Question 3: Are there exemptions for small charities?
Answer:
Yes — many states offer registration exemptions for smaller organizations that raise only limited funds or do not publicly solicit donations.
However, each state defines “small” differently, and these exemptions are not automatic. Nonprofits must typically apply for an exemption and may still need to file reports or renew their exemption periodically.
For details, see the National Council of Nonprofits’ overview on charitable solicitation registration.
Question 4: What happens if I miss a registration requirement?
Answer:
Failing to register or renew can result in:
- State fines and penalties
- Suspension of fundraising privileges
- Board or officer liability for governance failure
- Loss of donor trust
According to the Trust in Nonprofits and Philanthropy Report (2025), 57% of Americans report high trust in nonprofit organizations, underscoring the importance of transparency and accountability.
Similarly, the Donor Trust Report (2024) found that donors who perceive charities as transparent and well-governed are significantly more likely to give and donate repeatedly.
The Gist: Compliance Builds Donor Confidence
Fundraising compliance is not just a legal necessity — it’s a trust signal.
When paired with a compliant nonprofit CMS like Morweb, your fundraising platform can stay secure, transparent, and aligned with modern standards.
Book a free consultation with Morweb to learn how to make your fundraising compliant and donor-friendly.
