Do I Need a License to Collect for Charity?


Quick Answer

According to Legal Zoom, states usually require charities to obtain a license that registers the organization as an official charity. Licensing requirements and fees vary from state to state.

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Do I Need a License to Collect for Charity?
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Full Answer

State licenses for charities protect the public from fraud when being solicited for donations. Churches, schools and certain organizations may be exempt from needing a license. For the most part, charities need a license to conduct any type of fundraising activity. In addition, states typically require charities to file detailed reports revealing financial information. For instance, states often require a tax return from charitable organizations reporting income received from charity functions.

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