Q. Which nonprofits can participate?
Nonprofits that are verified 501(c)(3) charitable nonprofits that are headquartered or provide services in Rhode Island can participate.
Q. When can my nonprofit start registering for 401Gives?
Registration for nonprofits will begin on November 16, 2020. If we have your contact information, you will be notified via email. For questions and to add your name to the newsletter mailing list, email 401Gives@unitedwayri.org.
Q. Is there a fee for nonprofits to participate?
For the inaugural 401Gives, all nonprofit registration fees for 401Gives were waived.
For 2021, there will be a $35 early bird registration fee for nonprofits that register before February 15, 2021 and $50 after that. Fees are used for website costs, training, and media charges. Volunteer Center members will receive free registration.
The only other fees are the platform and credit card fees which donors always have the option to cover on your organization's behalf.
401GIVES NONPROFIT FEES
TOTAL 401GIVES CREDIT CARD AND PLATFORM FEES 2020:
$51,704.72 ($46,844.48 were covered by donors, $4,860.24 left ‘uncovered’)
EFFECTIVE RATE: .49% This is the ‘true’ cost to fundraise online for 401Gives in 2020. (you can compare to fees 4.7% + $0.30). In dollars, it cost a nonprofit $0.49 for every $100 raised online during 401Gives.
DONATION REALIZATION RATE: 99.51% This is the % of donations each nonprofit ‘took home’ on average in 2020.
What did each org actually pay (on average) in fees? $13.65!
Q. What is a "unique donor"?
For the purposes of awarding prizes to nonprofits, a unique donor is one individual or corporation/business. Multiple donations from one donor to the same nonprofit will count as one gift. Organizations cannot donate to themselves.
Q. Can a nonprofit have a fiscal sponsor?
Yes, a nonprofit can have a fiscal sponsor. You register with the nonprofit’s information and then the banking information of the fiscal sponsor. For further help, please contact a GiveGab representative through the chat messenger.
Q. What if a nonprofit has the 501c3 pending?
You can still register if the nonprofit’s 501c3 is pending. We will verify as it gets closer to the giving day.
Q. What is state charitable solicitation registration?
Nonprofits are held to a high standard of government regulation and public scrutiny. And that is with good reason! Eligible 501(c) nonprofits are exempt from federal corporate taxes and have access to public funding. These benefits are not typically available to for-profit businesses, so laws are in place to protect the public and ensure nonprofits do not abuse their financial advantages. The IRS and states all have requirements for nonprofits.
Q. Why is state charitable solicitation registration compliance important?
While 501(c) nonprofits receive key financial benefits, the penalties for noncompliance can be serious. The IRS can revoke a nonprofit’s tax exemption and impose fines that can accrue daily. The states can administratively dissolve a nonprofit corporation and levy steep financial penalties. Perhaps worst of all, an organization can lose out on a grant or large donation because it has not kept itself in good standing.
Taking a proactive approach to compliance helps ensure the sustained success of the organization. The cost of staying compliant is small in comparison to the much larger costs of noncompliance. The saying, “an ounce of prevention is worth a pound of cure” could not be more true in this context.
Q. What are the key aspects of state charitable solicitation registration compliance?
The IRS provides tax exemptions to eligible nonprofits under IRC 501(c). Public charities and private foundations receive 501(c)(3) tax exemption. The IRS scrutinizes organizations when they apply for 501(c)(3) but also ensures that those organizations meet the ongoing obligations to remain eligible. Nonprofits must file a 990 tax form each year with the IRS to disclose their financial data for the year.
Each state has their own set of requirements. Nonprofits are typically incorporated in a given state as a nonprofit corporation. The state in which the nonprofit has incorporated will impose requirements on the nonprofit, and those responsibilities typically span across multiple state agencies. Usually nonprofits must submit an annual filing to the corporations division of the secretary of state, maintain its license to fundraise (charitable solicitation registration), file for a state business license, and maintain state-level tax exemption with the revenue department. As nonprofits expand outside of the state or operate nationwide, they must comply with the same items in each other state as well.
In addition to IRS and state filing requirements, nonprofits must keep adequate records. Keeping accurate and complete records is critical in the event that an organization is audited. It is also common that board members or donors request information from the organization. Finally, records are necessary for submitting applications and renewal filings with various government agencies.
Q. When I check the box on GiveGab to declare state charitable solicitation registration compliance, what am I attesting to?
When you check the box you are attesting (defined as "declaring that something exists or is the case") that your organization is compliant with applicable state fundraising requirements in the states in which you may solicit donors using the GiveGab platform.
Q. Do you have additional resources to reference about state charitable solicitation registration?
Yes! Here are a few more resources from Harbor Compliance to help you: