When can nonprofits start soliciting donations?

Nonprofits in all but 10 states are required to register with the appropriate state division prior to soliciting donations in that state. The states that do not require registration as of 2016 are Delaware, Idaho, Indiana, Iowa, Montana, Nebraska, South Dakota, Texas (except for certain law enforcement, public safety, and veteran causes), Vermont, and Wyoming.

The good news is that most small- and medium-sized nonprofits have no problem registering on their own without the help of an expensive law firm or specialist. Furthermore, it is always a good idea to check whether your particular nonprofit is exempt from registering under the state rules.