Fundraising regulations: What volunteer boards need to know

Fundraising is the engine that powers the projects and campaigns that define success for mission-driven organizations. It’s also a tightly regulated space, whether you rely on face-to-face pledge drives or high-dollar grantmaking and corporate donations.

Compliance with regional and national laws demands strong governance practices and proactive preparation. And the stakes are high: appropriate registrations and disclosures are key to obtaining tax incentives, avoiding legal penalties and maintaining your reputation among donors and volunteers.

Understanding your legal environment can also make the organization more effective, helping you tap into fundraising innovations and adapt to new regulatory regimes. Good governance helps you stand out in a nonprofit environment where expectations for transparency — and regulatory scrutiny — have never been more stringent.

Read on for a region-by-region breakdown of fundraising legislation, including:

• Recent changes to fundraising rules in each country.
• Factors to consider when crafting your fundraising and compliance plans.
• Insights on staying ahead of the evolving regulatory landscape.

Fundraising regulations for nonprofits and charities by region

Americas

Canada

Charities, private and public foundations, and not-for-profit (NPO) corporations operating in Canada are required to register with the Canadian Revenue Agency. Fundraising regulations are set by the Canada Not-for-Profit Corporations Act, which stipulates that fundraising is allowed so long as it is not:

• The organization’s main purpose (you need to be raising money for a specific charitable goal).
• A separate business.
• Delivering disproportionate benefit to the individuals doing the fundraising.
• Deceptive or illegal.

The government also suggests, under the Income Tax Act, that NPOs should spend less than 35% of their revenue on fundraising. That number isn’t a hard cap, but higher expenditures increase the likelihood of an investigation.

United States

Organizations hoping to tap into the deepest capital markets in the world — and a famously giving-inclined population — must contend with both broad federal regulations and local requirements in every state from which they intend to raise funds.

Two federal laws define the basic framework: the Internal Revenue Service (IRS) rules under 26 U.S. Code § 501(c)(3), and the Federal Trade Commission’s (FTC) Telemarketing Sales Rule (16 CFR Part 310). These outline requirements for transparent communications and the avoidance of fraudulent practices, as well as defining which sources of funds can be tax-exempt and how to register as a nonprofit with the IRS.

Then there is state legislation. In Delaware, Idaho, Indiana, Iowa, Montana, Nebraska, South Dakota, Vermont and Wyoming, you’re in the clear. For the other 41 states and the District of Columbia, you’ll need to submit annual registration paperwork to the Attorney General’s (AG) office.

For registration details — deadline, filing format, website and fee information — we recommend consulting this list from the nonprofit-focused Caritas Law Group. For key 2023-2025 updates to state laws, we’ve got you covered:

California

A recent law, AB 488, compels annual disclosures from fundraising platforms (such a Facebook), and a 2024 update will block charities from using such platforms if they are delinquent in their registrations or payments to the California AG’s Registry of Charities and Fundraisers, the IRS or the California Franchise Tax Board (FTB).

Colorado

Recently passed both SB 129, a donor privacy law blocking disclosure of personal information identifying members of nonprofits, and SB 16, which allows for qualified intermediaries to receive (and pass on) charitable donations.

Georgia

Recent developments in Georgia include one new law imposing penalties on nonprofits that fail to follow donors’ written instructions for the use of their donations, and another increasing the penalties for violations of fundraising laws.

Hawaii

Hawaii’s SB 1048 will, starting January 1st 2026, require fundraising platforms to register under the state’s solicitation law. On that same date, SB 2693 will kick in, creating the offense of charitable fraud during states of emergency.

Following California’s example, SB 2983 requires fundraising platforms to register with the state AG.

Tennessee

A major law passed last year, HB 1707, makes multiple legal changes to fundraising and registration renewal, including the requirement that fundraisers must have an organization’s express permission to act on their behalf.

Utah

Utah’s HB 43 introduced several significant changes, such as prohibiting fundraisers from falsely indicating that they are affiliated with a charitable organization. It also eliminates requirements to register annually with the state Division of Consumer Protection, pre-notify the state about charitable sales promotions and more.

Virginia

Last year’s HB 464 raised the state’s audit threshold from $1 million to $1.5 million. The earlier HB 1748 tightened disclosure rules for professional fundraisers, and expanded fundraising law to cover email campaigns.

Asia-Pacific

Australia

Uniquely among countries on this list, Australia recently passed a major set of national reforms to fundraising laws for charities, NPOs, and non-government organizations (NGOs)…but the new “principles” take effect on a state-by-state basis, with only half — South Australia, Victoria and the Capital Territory — having adopted them into law as of early 2025.

Until they adopt some version of the National Fundraising principles, Western Australia, Northern Australia, Queensland, New South Wales and Tasmania operate under their existing local laws (see breakdown here).

New Zealand

Under the Charities Act of 2005, New Zealand requires national registration as a nonprofit or charitable organization prior to engaging in fundraising activities. In some jurisdictions (such as Auckland), public fundraising also requires a specific license, obtained from local government.

Notably, New Zealand is very friendly to NPOs specializing in fundraising for other mission-driven organizations, and maintains exceptional resources to support staff members in their fundraising efforts.

Singapore

Singapore’s fundraising regulations have recently been overhauled. Transparency is stronger thanks to a public portal tracking Charity Compliance indicators for mission-driven organizations, and a revised Philanthropy Tax Incentive Scheme (PTIS) encourages both private and corporate giving. Finally, new rules for grantmaking organizations loosened restrictions on their use of funds.

Europe

United Kingdom

In England, Wales and Northern Ireland, charitable fundraising has a centralized home: the Fundraising Regulator.

The agency’s Code of Fundraising Practice spells out legal dos and don’ts, with a major update to the code rolling out over the course of April and May 2025.

Ireland

Under the Companies Act of 2014, Irish not-for-profit organizations can operate as trusts, associations, cooperatives or other corporate structures. They can also — separately — choose to register as charities to receive valuable tax exemptions.

Irish charity operators, unlike their British counterparts, must also contend with wide-reaching regulations, such as anti-money-laundering laws, set by governing bodies of the European Union (EU).

European Union 

The EU’s regulatory framework for nonprofit fundraising relies on a meshwork of national laws set by member states. While there are coordination and registration options through the European Commission (for collaboration with agencies) and the Agency for Fundamental Rights (for voluntary disclosure and human rights cooperation), actual legal requirements apply at the national level.

For most member nations, registration as a mission-driven organization includes options for foundations, associations and (in some cases) limited-liability companies. Consult the Council on Foundations for an overview of laws in your target country or countries.

In the EU, 2025 marks the advent of new reporting standards under the Corporate Sustainability Reporting Directive (CSRD) of 2024, which applies more stringent requirements to corporate charitable giving (with the likely consequence that recipient nonprofits will need to supply donors with more information, more often).

These changes come one year after the passage of new rules to combat money laundering. The Anti-Money Laundering and Combating the Financing of Terrorism (AMLR) Regulation takes effect in 2027, with major updates including:

• Extending the scope of regulated entities (and adding crowdfunding platforms, in response to which Meta withdrew direct fundraising services in the EU and removed the donation buttons on Facebook).
• New transparency rules on beneficial ownership.
• Detailed guidance on customer due diligence.
• An EU-wide ban on cash payments above €10,000.

Switzerland

Swiss law governing not-for-profit organizations allows for the full range of standard legal vehicles — NPOs and NGOs, societies, trusts, cooperatives and more. Registration can be completed through the Federal Council’s SME Portal, and nonprofit fundraising in the country often makes use of centralized resources at organizations like StiftungSchweitz.

Africa

South Africa

NPOs operating in South Africa register as community-based, faith-based or non-governmental — in all cases, doing so through one of the country’s provincial social development offices. Organizations working for the public benefit are eligible for tax exemptions, provided they register with the Revenue Service.

Nigeria

In Nigeria, not-for-profit organizations most often choose to incorporate as charitable trusts, or as unincorporated associations. The country does not grant special status to organizations working for the public benefit.

To work directly with the Nigerian government, NGOs of all types must register with the appropriate ministry, such as health or education, and all NGOs are required to register with the National Planning Commission, the Federal Inland Revenue Service and the Special Control Unit Against Money Laundering.

Tanzania

The NGO Registrar in Zanzibar holds authority over registration for mission-driven organizations operating in the country, with their work benefitting from a centralized online portal.

Ghana

Operating an NGO in Ghana requires submitting relevant paperwork to the national Department of Social Welfare and navigating the district-level bureaucracy. Here’s a process overview from regulatory compliance specialists at Firmus.

For NPO corporations, meanwhile, you’ll need to follow a parallel process with the Registrar of Companies — we recommend this guide from Global Philanthropy Indices to get you started.

Botswana

The core of Botswana’s fundraising regulations spring from a central registry. The nation — along with Ghana, Nigeria and Uganda — recently tightened some NGO financing restrictions to help fight money laundering, as documented by the International Center for Nonprofit Law.

Since 1995, nonprofits operating in the country have also benefited from membership in the Botswana Council of Nongovernmental Organizations (BOCONGO), which maintains its own Code of Conduct and list of funding resources.

Lesotho

While the Lesotho Council of NGOs provides an umbrella under which NGOs are able to coordinate and communicate while operating in Lesotho, actual registration falls under the Companies Act of 2011. Companies can register as societies or charitable trusts, with the latter offering greater tax exemption.

Malawi

Under the NGO Act of 2001, nonprofits working in Malawi must register with the country’s NGO Regulatory Authority (NGORA).

To learn more about important exemptions and prepare your organization for Malawi-based projects, you’ll need to consult the philanthropic guidelines in the Taxation Act and Stamp Duties Act — here’s a great starting point.

Zimbabwe

Zimbabwe’s Non-Governmental Organizations Board maintains registration information for NGO’s operating in the country, including those registered as trusts and voluntary associations.

Many groups working in Zimbabwe also engage voluntarily with the National Association of Non-Governmental Organizations (NANGO).

Namibia

Namibia offers a standard range of mission-driven organizations: trusts, voluntary associations and not-for-profit corporations. These are subject to common requirements such as disclosures, detailed record-keeping and donor transparency. Dive deeper with this handbook from the German Development Service and !Nara Training Center.

A major update to Tanzanian NGO law is expected in the coming years, although the bill has been stalled in the House of Representatives since 2021.

Uganda

Mission-driven fundraising in Uganda is the purview of its National Bureau for Non-Governmental Organizations. Domestic and international NGOs must register separately, although both processes require standard disclosures including the organization’s purpose, intended public benefit, incorporating documents, structure and more.

What you need to be aware of

For board secretaries, governance professionals and other officers with compliance-related duties, the most important take-home message is this: charity and nonprofit fundraising sits at the intersection of transparency and sunshine laws, tax policy, anti-corruption and money laundering laws, incorporation procedures and many other complex legal constraints.

This guide addressed big-picture issues —where and with whom to register, which laws and bodies exert regulatory force — but your specific fundraising plan will need to check its own specific legal boxes.

Our advice: bring in your legal advisor or outside counsel early and hire outside help when you need it. Over-prepare, organize more than you need to — and don’t drop the ball on documentation and rock-solid governance fundamentals.

“Fundraising regulations may seem daunting, but as well as being something we have to comply with, they’re the backbone of trust and transparency in the nonprofit world. By embracing these guidelines, we not only protect our organizations but also honor our commitment to our donors and the communities we serve.” – Ed Rees, Senior Director, Sales for BoardEffect at Diligent.

More useful resources

For organizations operating in the United States, we recommend keeping an eye on a few key resources to monitor upcoming changes. The Nonprofit Alliance maintains a legislation watch list for corporate fundraising laws, for example, and Labyrinth regularly updates their state-by-state registration guides. For the UK, we suggest consulting legal research firm Lexology, and in the EU the European Fundraising Association reliably covers new legislation.

For help crafting a fundraising plan and navigating the logistics it’ll involve, Diligent has you covered with a fundraising plan template and our list of best practices.

Simple and secure: The advantages of BoardEffect

As a board administrator or nonprofit liaison, the best way to support your board that is to take busywork off their plates and build systems that streamline disclosures and registrations. In other words, a comprehensive governance platform future-proofs your fundraising planning.

A tool like BoardEffect allows you to:

• Access the organization’s full document archive from any device, at any time, through a secure portal.
• Store your key fundraising documents, plans and information on legislation requiring compliance all in one central Resource Library.
• Attach key documents to board packets for agenda items related to fundraising discussions.
• Create secure workrooms for your Finance or Fundraising Committees to review material and collaborate on fundraising projects.
• Easily annotate, share and collaborate on key fundraising documents agreements — whether for signature, review or coordination.
• Use surveys and polls to gather feedback from board members on fundraising efforts and plans.

Fundraising is challenging enough without administrative hiccups. Choose the smoother road. Choose BoardEffect.

Schedule a demo today to find out how we can support your board with fundraising.