Chapter Toolkit

5. Chapter FAQ's

Q. How were the Chapters/Projects chosen?

All of the chapters and projects featured in the Embrace A Stream Challenge first had to go through a rigorous process of review by the Embrace A Stream Committee, a group of 11 Trout Unlimited volunteers from across the country elected by their peers to review and approve grant applications through our Embrace A Stream grants program, which since starting in 1973 has funded more than 1,050 locally-driven TU chapter projects with over $4.6 million in direct funding and $13 million raised in matching funds and in-kind services. The chapters invited to participate in the Embrace A Stream Challenge have all received an Embrace A Stream grant in 2022.

Q. Can my Chapter donate to its own project using our Chapter Credit Card?

No, donations from a chapter to its own project will be ineligible for consideration in the awarding of prizes in the Embrace A Stream Challenge competition.

Q. What is state charitable solicitation registration?

Q. Why is state charitable solicitation registration compliance important?

While 501(c) chapters receive key financial benefits, the penalties for noncompliance can be serious. The IRS can revoke a chapter’s tax exemption and impose fines that can accrue daily. The states can administratively dissolve a chapter 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 chapters 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. chapters 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. chapters are typically incorporated in a given state as a chapter corporation. The state in which the chapter has incorporated will impose requirements on the chapter, and those responsibilities typically span across multiple state agencies. Usually chapters must submit an annual filing to the corporation's 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 chapters 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, chapters 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?

• Guide and Overview of Many chapter State by State Compliance Requirements
• Guide and Overview Specific to Fundraising Compliance
• National Council of chapters and Harbor Compliance have partnered to create a white paper explaining the state charitable solicitation registration requirements.
• A Quick Summary of Charitable Solicitation in Graphic Form
• Executive Brief: Charitable Solicitation Registration (great for driving awareness and support with leadership and the board)
• State by State Links to the State Organizations that Regulate Charities, Solicitation, and Registrations

Q. How will donations be distributed?

Each donation made to a participating chapter will be disbursed directly from GiveGab via direct deposit within 5-7 business days.