Charleston Principles for Nonprofit Registration
The Charleston Principles
The Charleston Principles are guidelines developed to help determine when a charitable organization must register in a state for charitable solicitation purposes. They were created in 2001 by the National Association of State Charity Officials (NASCO) and the National Association of Attorneys General (NAAG).
These principles emerged from a joint conference in Charleston, South Carolina, in response to growing concerns about the complexity of multistate fundraising compliance. At the time, inconsistent state regulations were placing a heavy burden on nonprofits operating across state lines.
Key Factors for State Registration
The Charleston Principles outline four key criteria that may trigger a charitable registration requirement in a given state:
- The charity has a physical presence in the state
- The charity receives contributions from the state on a regular and ongoing basis
- The charity actively solicits donations from residents of the state
- The charity has another substantial connection to the state
Why the Charleston Principles Matter
These guidelines provide clarity for both charities and state regulators by offering a standardized approach to determining when registration and reporting are required. While not legally binding, many states reference or incorporate the Charleston Principles in their regulatory practices.
By following these principles, charities can reduce compliance risks and avoid penalties associated with unregistered solicitation. They also support transparency and public trust in charitable operations.
If your nonprofit solicits contributions in multiple states, it's important to understand how the Charleston Principles apply to your activities. URS Compliance can help assess your current registration obligations and streamline the filing process.