State registration laws and online fundraising

According to a recent article in the The Chronicle of Philanthropy, many nonprofit organizations are probably violating laws in some states because they are collecting donations through online fundraising without letting state authorities know.

The article goes on to say that as many as 90 percent of all nonprofit groups may not have complied with state registration laws, according to Tony Martignetti, a planned-giving adviser in New York and author of Charity Registration: State-by-State Guidelines for Compliance.

As evidenced by the successful use of social media during President Barack Obama’s campaign, advancements in technology are shaping the way organizations raise funds. Nonprofits must understand the implications that come along with these new practices so that their efforts can be rewarding and not potentially harmful.

How is your organization adapting in today’s increasingly technology-driven fundraising environment? What challenges are you facing?

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