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Compliance

Scott Heflin • February 24, 2021

Two Commonly Overlooked Compliance Issues

Compliance

The first quarter of each new year is a great time to renew your annual compliance for both PCI and State Registrations for Fundraising


PCI compliance (assuming you receive funds via credit cards) is a must-have in today's organization.  Depending on your size, it can be relatively simple or quite complex.  However, once achieved, the annual renewal process is much easier.  Being non-compliant can subject the organization to huge financial penalties for each credit card accessed by a hacker, whether you use a system on your own servers or those in the cloud!  Yes, a common misconception is the cloud vendor is solely responsible but it's simply NOT true.


What impact would there be on your organization if 1,000 of your credit cards were digitally compromised?  Potentially thousands of dollars per stolen card, plus the backlash from your constituents... you would be seen as having violated their trust and likely lose future revenue from them.  This breach would likely ruin most non-profits.



State Registrations for Fundraising is a challenging requirement of filing in most states in which you raise donations.  Managing this is a painstaking task requiring many hours of research and filing paperwork and fees.  There are organizations who do this for you for a nominal annual fee.  Depending on your size, outsourcing this could make good sense allowing team members to focus on strategic objectives.

There have been some attempts to build a single-site registration service but it hasn't move along very quickly.  For more information see Harbor Compliance:
https://www.councilofnonprofits.org/tools-resources/charitable-solicitation-registration



Recently, I did find a resource on the ECFA website and reference it here for your convenience:  http://multistatefiling.org/index.html

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