Charitable Organizations Frequently Asked Questions

​​​​The following is designed to answer common questions you may have regarding registration and annual reports of a charitable organization.

Registration Question

• What is a charitable organization?
• What is a contribution?
• What does it mean to solicit contributions in Wisconsin?
• My charitable organization receives donations through a website that anyone can access.  Is that considered “soliciting” in Wisconsin?
• When does a charitable organization need to be registered with the Department?
• What are the registration exemptions?
• My charitable organization is soliciting contributions in Wisconsin and none of the exemptions apply, but it is already registered with the Department as a nonstock corporation under chapter 181.  Does it also need to register with the Department as a charitable organization under chapter 202?
• Are there any prohibited acts?
• Does my organization need a special permit to conduct a raffle or to hold a bingo event?
• Are there any other Wisconsin state agencies or federal government agencies that my charitable organization may have to register with?
• Must registered charitable organizations notify the Department before using a new trade name (“doing business as” name) in the state?

Annual Financial Report Questions

• Why must I file an annual financial report?
• When must I file my annual financial report?
• What form should I use to file my annual financial report?
• What do I need to submit with my financial report?
  
• Can the requirement for an audited or reviewed financial statement be waived?
• Is there a fee to file the annual financial report?
  
• Is there a difference between an annual financial report and a registration renewal?
• How do I update my organization's phone number/email address/mailing address, etc.?
  

Registration FAQ's

What is a charitable organization?

Under Wisconsin law, the term “charitable organization” includes an organization described in section 501(c)(3) of the Internal Revenue Code, as well as any other organization established for a benevolent, educational, philanthropic, humane, scientific, patriotic, social welfare or advocacy, public health, environmental conservation, civic, or other charitable purpose.

What is a “contribution”?

A contribution is a grant or pledge of money, credit, property, or thing of any kind or value to a charitable organization or for a charitable purpose.  There are some limited exceptions:  food, used clothing, used household goods, income from bingo or raffles, government grants, and bona fide membership fees, dues, or assessments are not considered “contributions” for these purposes. 

What does it mean to “solicit contributions” in Wisconsin?

A charitable organization solicits when it requests a contribution for a charitable purpose or to benefit a charitable organization from a person in this state.  Solicitations include oral or written requests in any form, whether made directly to specific individuals or organizations or more broadly through general advertisements in the state.  They also include sales campaigns that reference charitable purposes, such as statements that all or part of the proceeds from a sale will be used to support a charitable cause.

My charitable organization receives donations through a website that anyone can access.  Is that considered “soliciting” in Wisconsin?

• The charitable organization’s principal place of business is located in Wisconsin.
• The website refers to Wisconsin or otherwise affirmatively appeals to residents of this state, such as by sending communications to people physically located in this state.
• The charitable organization receives 50 or more contributions totaling more than $25,000 through the website from residents of this state during its fiscal year.

If none of those situations apply – and if the charitable organization is not soliciting contributions in Wisconsin in any other way – then registration under chapter 202 of the Wisconsin statutes is not required.

When does a charitable organization need to be registered with the Department?

What are the registration exemptions?

The following organizations or individuals are exempt from chapter 202 registration requirements, even if they are soliciting contributions in this state:

• Any charitable organization that does not raise or receive contributions greater than $25,000 during its fiscal year, so long as it has no paid employees and all its functions are performed by unpaid volunteers.
• A religious organization that is exempt from filing an IRS Form 990 annual information return.
• A political candidate, committee, or group that is required to file financial information with the Federal Elections Commission or the state Ethics Commission.
• A fraternal, civic, benevolent, patriotic, o​r social organization that solicits contributions solely from its membership.
• A veterans organization formed under federal law or chapter 188 of the Wisconsin Statutes, or a service foundation recognized in the organization’s bylaws.
• A nonprofit postsecondary educational institution accredited by a federally approved regional accrediting agency or association.
• An educational institution and its authorized charitable foundations, if they solicit contributions only from students and their families, alumni, faculty, trustees, corporations, foundations, and patients.
• An elementary or secondary school that is a private school, as defined in section 118.165 of the Wisconsin Statutes.
• A person soliciting contributions for the relief of a named individual if all contributions, without any deductions, are given to the named individual.
• A Wisconsin state agency or local governmental unit.
• A corporation established by an act of Congress that is required by federal law to submit to Congress annual reports, fully audited by the Department of Defense, of its activities including itemized accounts of all receipts and expenditures.

My charitable organization is soliciting contributions in Wisconsin and none of the exemptions apply, but it is already registered with the Department as a nonstock corporation under chapter 181.  Does it also need to register with the Department as a charitable organization under chapter 202?

Yes.  While some charitable organizations are formed as nonstock corporations, and some nonstock corporations solicit charitable contributions in the state, the two types of registrations are distinct and serve different purposes.

Are there any prohibited acts?

Yes, a charitable organization, fundraising counsel, or professional fundraiser may, not do any of the following: (Also see s.2​02.16(1))

• Use an unfair or deceptive act or practice.
• Imply that a contribution is for or on behalf of a charitable organization or use any emblem, device or printed matter belonging to or associated with a charitable organization without first being authorized in writing to do so by the charitable organization.
• Use a name, symbol or statement so closely related or similar to that used by another charitable organization that the use of the name, symbol or statement would tend to confuse or mislead a person being solicited.
• Represent or lead anyone in any manner to believe that the person on whose behalf a solicitation or charitable sales promotion is being conducted is a charitable organization or that the proceeds of the solicitation or charitable sales promotion will be used for charitable purposes if that is not the fact.
• Lead anyone in any manner to believe that another person sponsors, endorses, or approves a solicitation or a charitable sales promotion if the other person has not sponsored, endorsed or approved the solicitation or charitable sales promotion in writing.
• Use the fact of registration to lead any person to believe that the registration constitutes an endorsement or approval by the state.
• Represent or cause another to represent that contributions are tax-deductible unless they so qualify under the federal Internal Revenue Code.
• Represent or cause another to represent that the person has previously approved or agreed to make a contribution when in fact the person has not given this approval or agreement.
• Represent or cause another to represent that the person has previously contributed to the same organization or for the same purpose when in fact the person has not so contributed.
• Fail to apply contributions in a manner substantially consistent with the solicitation or the purposes expressed in the solicitation.
• Represent in any manner that registration constitutes an endorsement or approval by the Department or the Department of justice.

Does my organization need a special permit to conduct a raffle or to hold a bingo event?

Yes, Contact the Division of Gaming of the Wisconsin Department of Administration for instructions on how to apply for a raffle or bingo license. The Division of Gaming’s website address is www.doa.wi.gov/Pages/AboutDOA/Gaming.aspx.

Are there any other Wisconsin state agencies or federal government agencies that my charitable organization may have to register with?

• Wisconsin Department of Financial Institutions – Corporate and Consumer Services Bureau: Registers business entities that are conducting business in Wisconsin, including non-stock corporations. dfi.wi.gov/Pages/Home.aspx
• Wisconsin Department of Revenue – Tax Operations Bureau: Issues Certificates of Exempt Status to non-profit organizations. www.revenue.wi.gov/Pages/FAQS/pcs-n-profit.aspx
• Wisconsin Department of Administration – Division of Gaming: Issues bingo and raffle licenses. www.doa.wi.gov/Pages/AboutDOA/Gaming.aspx
  
• Wisconsin Department of Administration – Division of Administrative Services: Approves charitable organizations to participate in the State Employee Combined Campaign. www.giving.wi.gov
• Wisconsin Department of Justice: Receives copies of the IRS form 990-PF from Private Foundations. This is an IRS requirement. See Federal Income Tax Regulation 1.6033-3 for more information.
• Internal Revenue Service (IRS) – Processes charitable organization applications for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. https://www.irs.gov/charities-non-profits/applying-for-tax-exempt-status

Must registered charitable organizations notify the Department before using a new trade name (“doing business as” name) in the state?

Yes, a registered charitable organization must notify the Department at least 30 days prior to using any trade name that was not disclosed in its initial application.  If the Department does not object within 30 days, the organization may use the trade name in the state.

Annual Financial Report FAQs:

Why must I file an annual financial report?

Every charitable organization registered in Wisconsin must file an annual financial report. The Charitable Organization Annual Report is designed to provide a complete and full financial reporting of the organization's charitable and non-charitable activities in sufficient detail to permit public evaluation of its operations.

When must I file my annual financial report?

It must be filed within 12 months after your fiscal year-end.

What form should I use to file my annual financial report?

There are three different reporting forms available on the forms page, please review the qualification(s) on which one you must file.

What do I need to submit with my financial report?

All requirements are listed on the financial report forms.

Note: if your organization is required to submit a Reviewed or Audited financial statement it must be prepared in accordance with generally accepted accounting principles (GAAP), which have been reviewed by an independent certified public accountant (Special purpose frame works such as cash basis and modified cash basis does not meet the requirements).

Can the requirement for an audited or reviewed financial statement be waived?

Yes, A charitable organization may apply to the Department in writing, within 90 days after the charitable organization’s fiscal year-end for a waiver of the requirement for audited or reviewed financial statements, if you meet the following requirements:

1. The charitable organization's contributions were, during each of the past 3 fiscal years, less than $100,000
2. During the fiscal year for which the waiver is being requested, the charitable organization received one or more contributions from one contributor that exceeded $200,000, if seeking a reviewed financial statement waiver, or that exceeded $400,000, if seeking an audited financial statement waiver.

Is there a fee to file an annual financial report?

No, there is no fee

Is there a difference between an annual financial report and a registration renewal?

Yes.  The annual report and the renewal are two different annual requirements.

1. The online renewal registration must be filed before July 31st of each year. The online renewal involves answering a few online questions and paying the renewal fee.    
2. The annual financial report must be submitted to the division within 12 months after the organization's fiscal year-end.  The annual report does not have a fee associated with it and there are three annual report forms to choose from A description of each form can be found on the division's website at dfi.wi.gov/Pages/BusinessServices/CharitableProfessionalOrganizations/Forms.aspx.
   • Note: The annual report form cannot be submitted online.
     

How do I update my organization's phone number/email address/mailing address, etc.?

The online renewal provides you with an opportunity to update these items; however, you can also change this information at any time by logging on to your organization's online account through our website.  Simply go to dfi.wi.gov/ice/berg/UserLogin.aspx and click on "Name & Address Change".