Top 4 board misconceptions about nonprofit fundraising

… or What nonprofit board members should know about fundraising compliance, but were afraid to ask...

These are the top misconceptions I've actually heard from nonprofits:

1. (Scariest) "We have a letter from the IRS saying we are a 501 c 3. So we can legally fundraise. Wrong, you need to register in 45 states.
2. I'm registered to fundraise in my own state, so I'm good! Wrong, you need to register in states where you solicit gifts as well.
3. We won't get caught, and if we are, we'll just pay the fine and no one will know. Wrong, many states also post the names of nonprofits who've erred. In Pennsylvania, the list is posted on the Bureau of Charitable Organizations website and it goes back to 1979! Really? You want your nonprofit black-balled for 40+ years?
4. We board members have Directors and Officers Liability insurance, so I'm personally protected. Wrong, most D&O insurance policies don't cover the cost of compliance infractions, so you may be personally liable.

Check out this good, quick article on fundraising compliance from one of my favorite online zines, #blueavocado. https://blueavocado.org/fundraising/riskybusiness-is-your-fundraising-in-compliance-with-state-laws/

For more, check out my "Are you a fundraising criminal?" blog https://vmja.com/are-you-a-fundraising-criminal/