Effective June 20, 2013, Arizona repealed its solicitation registration requirements for nonprofits that fundraise in Arizona. Nonprofits no longer need to file an initial registration form or the annual renewal registration form that was required under the prior law.
Arizona’s charitable registration requirements had been the most onerous of any in the country. Arizona’s law did not include exemptions commonly allowed in other states for small organizations, churches, charter schools, and nonprofits that solicit only from their own members. While state charitable solicitation laws are intended to protect citizens from abusive fundraising practices, they have become increasingly complex and difficult for nonprofits to comply with, particularly with Internet fundraising where nonprofits can easily (and inadvertently) solicit across state lines. In the past, many nonprofits ignored registration requirements but this is riskier now because the IRS has added questions about state registration on the IRS Form 990.
In repealing this law, Arizona now joins eight other states without any registration or reporting requirements for nonprofits engaged in fundraising in their state. The other states without charitable solicitation registration laws are Delaware, Indiana, Iowa, Montana, Nebraska, Nevada, South Dakota, and Wyoming.