The Risks of Not Registering Your Non-profit

If you’re one of the many nonprofits preparing to raise funds in the upcoming year, you may already be familiar with the requirement to register in each state where you plan to raise funds. Because many are now using tools like social media to raise funds, the requirement to register in the states that require it is almost a foregone conclusion. If you’re looking to avoid the paperwork hassle, though, and not register your charity on the hope you qualify for some hidden exclusion, you may want to think again. The consequences associated with your actions are more serious than you think.

Civil Penalties

The civil penalties associated with failure to register typically mean fines for the organization itself. They can often be fairly substantial, too, taking quite a bite out of your group’s yearly revenue. Often, as in the State of Maryland, fines of $5,000 or more can be imposed for every single violation, so each time your group held an event and you weren’t registered, you may be adding to your tally.

Criminal Liabilities

The fines aren’t the only problem with a failure to register. If you knowingly fail to comply with the state’s charitable registration act, you could be facing up to felony charges just for failing to comply. This can extend to anyone on the directorial board who knew registration was required, and could mean extensive personal fines or even jail time (for multiple offenses in the State of Florida) for you and your board members.

Go The Easy Way

Fortunately, we make registration easier than ever, so there’s no problem with compliance. With a streamlined process that means one simple form ensures you’re complying with every state in which you plan to raise funds, and links to all the relevant information, it’s simple to get the paperwork you need completed immediately and never have to worry about facing penalties again. Get started now.

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