Page 158 - Washington Nonprofit Handbook 2018 Edition
P. 158

contributions to the extent that there is  an  impact to persons or entities in their
               state.


                       b.     Internet Solicitations

                       Internet solicitations  are trickier.  There  is limited regulatory guidance with
               respect to charitable solicitation compliance if a person or entity is soliciting in a
               state  solely  through  the  internet.    In  an  attempt  to  provide  clarity,  the  National
               Association  of  State  Charity  Officials  published  internet  registration  guidelines
               known as the “Charleston Principles” which outline when registration in a foreign
               state is required:


                       •      If  the  person  or  entity  solicits  through  the  internet  and  specifically
                              targets  (e.g.,  email,  telephone,  or  direct  mail)  persons  or  entities
                              physically located in the state; or


                       •      If  the  person  or  entity  solicits  through  the  internet  and  receives
                              contributions  on  a  repeated  and  ongoing  basis  (the  number  of
                              contributions  may  vary,  but  some  states  would  say  that  25  or  more
                              contributions  per  year  is  considered  repeated  and  ongoing)  from
                              persons or entities physically located in the state; or


                       •      If  the  person  or  entity  solicits  through  the  internet  and  receives
                              substantial  contributions  (this  amount  may  vary,  but  some  states
                              would  say  $25,000  or  1%  of  total  contributions  per  year  in  the
                              aggregate  constitutes  substantial  contributions)  from  persons  or
                              entities physically located in the state.


                       However, many states advise that a person or entity soliciting contributions
               on  the  internet  proactively  register  and  comply  with  every  state’s  charitable
               solicitations laws, particularly if the solicitations are broadcast widely and are likely
               to receive responses in many states.


                       Registering nationwide is not required so long as the following elements are
               met:

                       •      The only connection with the state is a small number of donations


                       •      There is no plan to actively target residents of that state, and











               WASHINGTON NONPROFIT HANDBOOK                -147-                                       2018
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