Steve Urich explains why charities must display state-specific disclosure statements before donors give money, across mail, email, and online. Common mistakes include outdated language and assuming corporate partners handle compliance. A five-step checklist covers registration status, state rules, accurate wording, team coordination, and partner vetting.
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When you're gearing up to launch a fundraising campaign, it is so easy to get caught up in the big picture. But you know, there's one small detail that can create some major compliance headaches if you overlook it. So today, we're digging into the critical role of required disclosures. And just so you know, this resource is brought to you by Ironwood Registrations. It's part of our multi-state fundraising compliance series, which is all about making these complex topics clear and practical for nonprofit leaders like you. Okay, so you're launching a campaign. All your energy is going into the messaging, the engagement, the story. But there's this little detail kind of lurking in the background that can create some serious compliance risk if it's missed. And that's your required disclosures. So what are we actually talking about here? What exactly are these disclosures? Let's start with a really clear definition just to make sure we're all on the same page. Simply put, required disclosures are just specific statements that state laws require you to include in your charitable solicitations or any promotional financial materials. You can think of them as the "fine print" that's, well, not so fine. It's legally necessary. And you know, these rules exist for a really good reason. It's not just red tape. They're all about creating transparency for your donors, making sure your fundraising claims are accurate, and giving people a clear picture of how their contributions are actually gonna be used. At the end of the day, it's about protecting everyone from being misled. Okay, so that's the what and the why. Now let's get into the when and where by walking through a few key scenarios you're probably familiar with. First up, let's talk about your standard solicitations. We're talking about the bread and butter of fundraising, right? Things like direct mail, email campaigns, online donation pages. Even in these everyday situations, specific rules apply. And this is where it gets really specific. A lot of states require language that's almost identical to this. It directs donors to where they can find financial info and makes it clear that being registered with the state is not the same as an endorsement. And getting this wording exactly right? That isn't just a suggestion—it's often a legal requirement. Alright, let's switch gears to another really common scenario: cause marketing. This is when a for-profit business advertises that buying their product will benefit your charity. That partnership, which is often called a commercial co-venture, brings a whole other set of disclosure rules to the table. Now, this is a perfect example of what regulators are looking for. Vague language like "a portion of proceeds will be donated" Well, that usually doesn't cut it. Most states require the specifics—the exact percentage or the dollar amount per purchase—and any maximum donation cap. In this case, clarity isn't just good practice; it's the law. And believe it or not, things can get even more complicated when you bring in a professional fundraiser. See, engaging a third-party firm can introduce another layer of state mandates, which means even more specific disclosures might be required in your solicitations. This brings us to a really practical question, especially these days. With so much fundraising happening online, where do these disclosures actually have to go? Is just putting a little link in the footer of your website enough? Well, the short answer is no, probably not. States expect these disclosures to be clearly visible, right on the donation page or within the campaign description itself. The key thing here is that they have to be accessible before a donor finishes their gift. Hiding them on a separate terms and conditions page is generally not going to be compliant. And, as you can imagine, this all gets even more complex when your campaigns cross state lines. So let's talk for a minute about the reality of multistate fundraising and some of the common mistakes that we see people make. Look, if you're fundraising nationally, you just can't assume that one state's rules apply everywhere else. Every state has its own little quirks and nuances. This means having a structured review process isn't just a good idea, it is an absolute necessity. And some of the most common mistakes are surprisingly easy to make. Things like using old language from a past campaign, forgetting to include a sentence that one specific state requires, or not updating your disclosures if a registration has lapsed. And a really big one is just assuming that your corporate partner is handling all the compliance stuff. That's a risky assumption that can come right back to the charity. Now, I wanna zoom out for a second. It's really easy to get lost in the weeds of compliance, but let's talk about why this is about so much more than just following the rules. These disclosure requirements, they aren't just bureaucratic hoops you have to jump through. They actually represent something much more fundamental to the incredible work that you do. See, when you get this right, it reinforces everything you want your organization to stand for. It builds donor trust, it demonstrates transparency, and that in turn boosts your credibility and it signals strong governance. It's basically a public statement that your fundraising practices are buttoned up and compliant. So, to make all of this super practical, let's wrap up with an actionable checklist that you can use before your next campaign ever goes live. Here are 5 key steps you can build right into your process: First, confirm your registration status in all the relevant states. Second, review the specific disclosure rules for each of those states. Third, double-check that all your language is current and accurate. Fourth, make sure your marketing and development teams are coordinated so everyone's on the same page. And finally, if you've got a corporate partner, be sure to review their materials to make sure they're compliant too. And that really brings us to the key takeaway: Required disclosures are a fundamental part of compliance. Taking the time to build structured oversight into your campaign process doesn't just prevent problems—it protects your donors, it protects your partners, and it protects your organization. And all of that paves the way for sustainable fundraising growth.
