Key takeaways
- The FTC's Telemarketing Sales Rule doesn't cover tax-exempt charities making their own calls, but most of it applies to paid "telefunders" calling on their behalf.
- Paid callers must promptly give the charity's name and say the call is a request for a contribution, honor do-not-call requests and call only between 8 a.m. and 9 p.m.
- Under the TCPA, autodialed or prerecorded calls and texts to cell phones generally need prior consent, even for nonprofits.
- Most states require charities to register, and 42 regulate paid professional fundraisers, typically with registration, a bond and a filed contract.
This guide is general information, not legal advice. Rules change and vary by state, so confirm your obligations with qualified counsel before a campaign.
Who is calling matters
The rules depend on whether a charity's own staff and volunteers make the calls or a paid outside firm calls on its behalf. The FTC says tax-exempt nonprofits that conduct their own telemarketing are not covered by its Telemarketing Sales Rule, but most of the rule applies to "telefunders": for-profit telemarketers who solicit charitable contributions for a charity. Many state laws also apply specifically to paid solicitors.
The FTC Telemarketing Sales Rule (TSR)
For paid telefunders, the FTC lists these key requirements:
- Prompt disclosures: in every outbound call, before any solicitation, the caller must give the charity's identity and say that the purpose of the call is to solicit a charitable contribution.
- Entity-specific do-not-call: if someone asks not to be called again on behalf of a charity, that request must be honored. Telefunders are exempt from the TSR's National Do Not Call Registry provision.
- Calling hours: no calls before 8 a.m. or after 9 p.m.
- Prerecorded messages: cold calls that deliver prerecorded messages aren't allowed, and prerecorded calls to members or previous donors must include a prompt opt-out.
- Truthful answers: callers may not misrepresent the charity's purpose, how a gift will be used, whether it is tax deductible, or how much of it goes to the charity. If a donor asks what share goes to the charity, the answer must be truthful.
- Recordkeeping: telefunders must keep records such as call details and do-not-call lists. The FTC's 2024 amendments extended the retention period from 24 months to five years.
The Telephone Consumer Protection Act (TCPA)
The TCPA, enforced by the FCC and through private lawsuits, focuses largely on how calls are placed:
- Do Not Call Registry: a 2003 FCC order relieved nonprofits from the TCPA's National Do Not Call Registry provisions. Keeping your own internal do-not-call list is still good practice, and some states require it.
- Autodialed and prerecorded calls to cell phones: nonprofits are not fully exempt. Calls and texts to cell phones made with an autodialer or a prerecorded or artificial voice generally require the person's prior consent.
- Texts: treat text messages like calls, and get consent before texting supporters.
- Penalties: the TCPA allows private lawsuits with damages of $500 per violation, up to $1,500 for willful or knowing violations.
Live calls dialed by a person carry fewer TCPA restrictions than automated calls, which is one reason many charities prefer human-led outreach.
State charitable solicitation laws
State law adds further layers:
- Charity registration: 36 states and Washington, DC broadly require charities to register before soliciting their residents, unless an exemption applies.
- Professional fundraiser registration: according to Perlman & Perlman, 42 states regulate professional fundraisers (also called paid or professional solicitors). Typical requirements include registering before soliciting, posting a surety bond, often $10,000 to $25,000, and filing the contract between the charity and the fundraiser with the state.
- Point-of-solicitation disclosures: virtually all of those states require a paid solicitor to identify itself as a professional fundraiser, many require disclosure that it is paid, and donors who ask must be told truthfully how much of a gift goes to the charity.
Some states also have their own telemarketing and do-not-call laws that can be stricter than the federal rules.
For requirements, fees and filings in each state, see our state charitable solicitation registration guides.
A practical checklist before calling
- Confirm your organization's charitable registration in the states you'll call into.
- If you use a paid firm, confirm it is registered and bonded where required, and that your contract is filed where required.
- Approve the talk track, including the required disclosures.
- Check lists against your internal do-not-call list and any state lists that apply.
- Use live calls dialed by a person, or obtain the right consent, for cell phones.
- Call only within permitted hours in the recipient's time zone.
- Record do-not-call requests immediately and honor them.
- Keep records of calls, talk tracks and outcomes.
Questions to ask a calling partner
Ask any outside fundraising partner, including us, how they handle disclosures, do-not-call requests, calling hours, state registration and recordkeeping. A good partner will answer clearly and put it in the contract. For how to run the calls themselves, see our guide to phone fundraising.