State Registration for Greek Foundations
Many Greek foundations believe that they are exempt from state registration requirements because they generally solicit from within the affiliated fraternity’s or sorority’s membership. Some states do provide an exemption for charities soliciting solely from within their own membership. Although your foundation is affiliated with the fraternity, the members of the fraternity are not, by virtue of being members of the affiliated fraternity, also members of the foundation. Normally, foundations do not have members.
40 states require registration to solicitation contributions, requiring annual registration. Federal and state authorities are becoming increasingly focused on proper registration.
Does your foundation:
- Maintain a website with a ‘donate here’ button?
- Send out mailers, pamphlets, flyers, magazines, etc.?
- Send emails that include a request for contributions?
- Hold fundraising events?
If you answered YES to any of the above questions, you are likely required to register in the red states indicated in the map. Even if you do not receive contributions from these requests, the requests are a solicitation. Violation of registration requirements can be embarrassing, costly and result in increased scrutiny from both federal and state regulators.