Sell one raffle ticket online to someone in another state, and you might have just broken the law — without even knowing it.
Many rowing clubs think fundraising rules are the same everywhere. They’re not. In the U.S., each state sets its own rules for nonprofit fundraising. If your club solicits donations from people in other states — even through an online fundraiser, email campaign, or social media post — you may need to register in those states before asking for money.
This is where clubs get into trouble. It’s easy to post “Donate Now” on your website and share it on Facebook. But the moment someone from across the state line clicks and gives, you may have triggered legal requirements you didn’t meet. States take this seriously because they want to ensure that nonprofits asking their residents for money are legitimate and transparent. Ignorance of the law is rarely accepted as a defense — and for a small rowing club, the financial and reputational consequences can be significant.
What Triggers Multi-State Registration?
The threshold varies by state, but common triggers include soliciting donations through a public website, running online raffles or crowdfunding campaigns, sending email appeals to out-of-state recipients, or receiving donations from residents in other states — even passively. Some states require registration the moment you solicit, regardless of how much you raise. Others set a dollar threshold. Either way, the burden is on your club to know the rules before you ask.
Real Consequences for Real Clubs
We’ve seen it happen:
- A club was fined after running a national online raffle without the proper registrations in multiple states.
- A major grant application was denied because the grantor discovered the club wasn’t compliant with state fundraising laws.
- Sponsors pulled support after learning the club’s fundraising activities could be considered illegal in their home state.
These aren’t edge cases. They’re predictable outcomes when fundraising outpaces compliance planning.
Why It Matters
Fines can eat up the very donations you worked hard to raise. Worse, public notice of noncompliance can damage your club’s reputation with donors, sponsors, and members. Many grantors now check for multi-state fundraising compliance before awarding funds — meaning you could lose a grant opportunity before your application is even reviewed. For clubs that rely heavily on annual fundraising to cover equipment, travel, and coaching costs, a compliance gap can quietly undermine everything else you’re building.
What to Do
The good news is that compliance is manageable when approached systematically. Start with these steps:
- Know your audience. If you’re asking for donations outside your home state, research the fundraising registration requirements for each state where you solicit. The Unified Registration Statement (URS) is accepted by most states and can simplify the process.
- Register where required. Many states offer a straightforward — though sometimes tedious — registration process for nonprofits. Some require annual renewal, so build this into your administrative calendar.
- Use fundraising platforms that manage or guide compliance for multi-state campaigns. Some platforms flag registration requirements based on donor location, which can help you stay ahead of the issue.
- Document your outreach. Keep records of where you’re soliciting and who’s giving, so you can demonstrate compliance if asked. Good recordkeeping is your first line of defense.
- Consult a nonprofit advisor or CPA familiar with charitable solicitation laws if your fundraising reach is growing. A one-time review can prevent costly mistakes down the road.
Bottom Line
Crossing state lines in rowing means new water, new currents, and new challenges. Crossing them in fundraising is no different — the rules change by state, compliance is your responsibility, and the cost of getting it wrong often exceeds the cost of getting it right from the start. Before your next campaign goes live, make sure you know exactly where you’re rowing — and whether you’re licensed to be there.