September 2015

State Registration Issues and Online Fundraising

An issue that public charities and private foundations have faced for years is that of state nexus and compliance, especially with respect to fundraising that is done through an interactive website.  The ability to expand a nonprofit’s reach through technology and other means leads to the increase in state compliance requirements.

The National Association of State Charity Officials (NASCO) released a final version of its internet fundraising guidelines.  These guidelines are referred to as the Charleston Principles.  Essentially, the guidance is this:

• Organizations that are domiciled within a state and solicit contributions through their website must register with that state.

• Organizations located outside of a state must register if they use their website to specifically “target” individuals in that state or receive contributions from that state on a “repeated and on-going basis”.

For more information on the Charleston Principles, click here.

Facebook Rolls Out 'Donate' Button for All Charities

At the end of August, Facebook announced that it is making its “donate now” button available to all nonprofits to use on their Facebook pages and linked advertisements. 

Read more. 

Foundation Investment Growth Slowed Substantially Last Year 

In 2014, investment portfolios of private foundations grew 6.1%, which is a lower rate than in the previous two years.  This study showed that foundation investments moved in a positive direction for the third straight year despite the lower growth.  This article highlights additional study finds.

Read more.

Edelstein has responded to the FASB’s exposure draft, which if implemented as proposed, would radically change how nonprofit financial statements are presented.  FASB has received over 260 comments. The amount of attention it has received is not surprising given the profound nature of the changes described in the exposure draft.  If you are interested in reading our response, please click here [Our comment letter is number 71].