What this service is
The IRS decides your federal tax-exempt status, but states regulate charities too. Two separate kinds of state filing usually apply:
- Charitable solicitation registration. Many states require a charity to register with a state office, often the attorney general or secretary of state, before or soon after it solicits donations from residents, and to renew every year. Our guide to state charitable solicitation registration explains how this works.
- State tax exemption. Your federal determination letter does not automatically exempt you from state income, franchise, sales or property taxes. Many states require their own application. See state tax exemption.
We prepare and file both, in the states where you operate and solicit, and keep track of the renewals.
Two examples of how rules differ
California requires every charitable corporation and other entity holding property for charitable purposes to register with the Attorney General's Registry of Charities and Fundraisers within 30 days of first receiving charitable assets, such as donations or grants. The requirement also reaches out-of-state charities doing business in California, which includes soliciting California residents. Separately, the California Franchise Tax Board treats an organization as taxable until it grants exempt status; a 501(c)(3) with a federal determination letter requests state exemption on Form FTB 3500A.
New York registers charities through the Attorney General's Charities Bureau under Article 7-A of the Executive Law and Article 8 of the Estates, Powers and Trusts Law, with annual financial reporting.
Other states have different triggers, thresholds, exemptions and deadlines. Rules vary by state, which is why we start by mapping where you actually raise money.
Who needs it
- New charities about to launch a donation page or mail appeal.
- Organizations that raise money online from donors in many states.
- Charities that have been soliciting without registering and need to catch up.
- Newly recognized 501(c)(3)s that still need state income or sales tax exemption.
What's included
- State review: we identify the states where your activities likely require registration or a tax exemption filing.
- Initial registrations with each required state office, using your governing documents, IRS determination letter or application, and financial information.
- Annual renewals, including the financial reports states ask for, coordinated with your federal annual return.
- State tax exemption applications for income or franchise tax, and guidance on sales and property tax where they are handled separately.
- Renewal tracking in a calendar of every state deadline, with reminders well ahead of each one.
What we need from you
- Your articles, bylaws, EIN and IRS determination letter, or a copy of your pending exemption application.
- A list of the states where you have an office, staff, board meetings or programs.
- How you raise money: online, by mail, events, grants, professional fundraisers.
- Your most recent financial statements and federal annual return.
- Names and addresses of officers and directors.
How it works
- Mapping and quote. We review where and how you solicit and send a fixed quote before work starts.
- Document gathering. We collect what each state requires.
- Preparation. We prepare each registration or exemption application for your review and signature.
- Filing. Applications are submitted with each state's fee, paid to the state.
- Tracking. Renewal dates go on your compliance calendar.
What affects timing
State agencies set their own review times, and some ask follow-up questions. Many states want an IRS determination letter or a copy of your federal application, so timing can depend on where your IRS application stands. Renewals often depend on your federal annual return being ready, so we coordinate the two. Form 990 itself asks which states you file a copy with.
Frequently asked questions
Does a 501(c)(3) letter exempt us from registering?
No. Federal exemption and state registration are separate. Whether your organization is exempt from registering depends on each state's own law, so we check every state on your list.
Do online donations count as soliciting in other states?
Possibly. California, for example, treats soliciting California residents by mail, advertising or other targeted means as doing business there. Other states take their own positions, so we review your fundraising methods state by state.
Can you also handle state annual reports for the corporation?
Corporate annual reports to the secretary of state are a separate filing. Our annual compliance service can track those too, and our guide to state annual reports explains them.
Sources
- California Attorney General: Initial Registration. oag.ca.gov
- California Franchise Tax Board: 2025 Instructions for Form FTB 3500A. ftb.ca.gov
- New York Attorney General Charities Bureau: Voluntary Dissolution of Not-for-Profit Corporations with Assets (registration requirements, Appendix E). ag.ny.gov
- IRS: Form 990, Return of Organization Exempt From Income Tax (2025). irs.gov
IRS forms, fees and inflation-adjusted amounts change. We review this page when the IRS publishes new instructions.
501Nonprofit.com is a private company, not the IRS. This page is general information, not legal or tax advice for your organization. Example organizations and figures are hypothetical.
