If you’re a Professional Fundraiser, we think you’re doing some of the most meaningful work a company can do. The creativity, strategy, and energy that go into raising money for nonprofit causes – while building a successful business – offer real value to the sector.
But like many areas of charitable fundraising, the space has seen its share of bad actors. And when even a few exploit the system, it brings increased scrutiny to the entire industry.
That scrutiny is here. And it’s growing.
We recently attended a National Association of Attorneys General (NAAG) webinar focused on the regulation of Professional Fundraisers. The message was clear: this category of fundraising is very much on the radar of state regulators.
Regulators step in when either nonprofits or consumers have been harmed. Some Professional Fundraisers have solicited funds using a nonprofit’s name, only to retain all or most of the proceeds. Others have structured contracts that left the nonprofit with little to show – even in campaigns that raised significant amounts. Then there are the transparency concerns: unclear prize terms, vague donation disclosures, and marketing language that leaves donors unsure where their money is going.
Even if none of this applies to your company, it’s important to understand the context. Regulators aren’t assuming good intentions. They’re enforcing the law.
Many companies we work with ask this question – and it’s a fair one. The term “Professional Fundraiser” can seem narrow, but state regulators define it broadly.
Here’s a simple test:
You’re likely a Professional Fundraiser if your company solicits donations on behalf of a nonprofit and there’s public alignment between your brand and the nonprofit’s. This could mean:
If any of that applies, then in the eyes of most states, you are a Professional Fundraiser – and thus, subject to the rules that come with it.
Some companies knowingly comply with the law. Others, often smaller or newer to the space, simply don’t realize they’re regulated...or they assume the rules don’t apply to their specific campaign.
We understand the hesitation. Becoming a registered Professional Fundraiser means navigating a patchwork of state-level requirements. It can feel tedious, expensive, and bureaucratic. But the legal threshold for being regulated is remarkably simple. If you’re fundraising on behalf of a nonprofit, and the public can reasonably see that alignment, you’re likely in scope.
Yes.
We don’t believe in calling out others by name, but there are numerous examples of fundraising companies that have been hit with significant penalties, banned from operating in certain states, or publicly reprimanded by state attorneys general.
In most cases, the fallout includes not only fines and legal costs, but also long-term reputational damage. Enforcement actions are typically accompanied by press releases, and those press releases are designed to send a message – to other fundraisers, to nonprofits, and to the public.
A quick Google search of “state AG actions against professional fundraisers” shows how common these actions are, and how publicly they’re handled.
If you're seen as noncompliant, nonprofits may hesitate to work with you. States may deny future registrations. Consumers may lose trust. The risk is more than theoretical.
In general, states want to see three things:
These requirements vary by state and can quickly become overwhelming if you’re managing multiple campaigns across jurisdictions.
Compliance doesn’t have to slow you down.
Change has built a platform designed specifically for Professional Fundraisers. We help you register, disclose, and stay compliant without burying your team in paperwork. From campaign setup to reporting, our system was built to help you grow, not just stay in line.
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