State registration for online donations

From GrassrootsPedia

Does a nonprofit organization need to register in every state in order to solicit money online? It's unclear. Organizations that are fundraising by direct mail in a particular state must register as a charitable organization in that state, but the laws are hard to apply directly to internet fundraising. No one has been prosecuted for internet fundraising, so there's no precedent to know how the laws will apply. Some online donation vendors that are nonprofits themselves tell you they are registered in all applicable states, so you don't have to.

Does it help you that the vendor is registered? It's possible. It certainly doesn't hurt. But the law could also be interpreted to mean that both the vendor and your organization (as the entity for which the donations are being solicited) should be registered in any states where "substantial" funds are being raised. Whatever a vendor (or this report) tells you, you should consult your own lawyer and make your own decisions. For more resources on this subject, see the [Nonprofit FAQ on this subject.