To report a charity scam or suspicious solicitation in Tennessee, you should first file a formal complaint with the Tennessee Secretary of State, Division of Charitable Solicitations and Gaming. This office is the primary regulator responsible for enforcing the Tennessee Charitable Solicitations Act, which requires most organizations to register before asking for donations. If the issue involves deceptive business practices or significant financial loss, you may also need to escalate the matter to the Tennessee Attorney General’s Consumer Protection Division.
What Controls the Issue
The primary legal framework governing charitable giving in the state is the Tennessee Charitable Solicitations Act (T.C.A. § 48-101-501 et seq.). This law mandates that charitable organizations, professional solicitors, and fundraising counsel must register with the Tennessee Secretary of State before soliciting contributions within the state.
While the IRS grants federal tax-exempt status (such as 501(c)(3) status), this does not exempt an organization from Tennessee’s state-level registration and reporting requirements. As of 2026, the state continues to enforce strict transparency rules regarding how funds are raised and disclosed to the public.
Confirmed Regulatory Requirements
Under Tennessee law, several specific rules govern how charities must operate. Violations of these rules are often the basis for a formal complaint:
- Registration: Most organizations must register and renew their status annually by the last day of the sixth month following the end of their fiscal year.
- Raffle Legality: Raffles are strictly regulated. Only qualified 501(c)(3) or 501(c)(19) organizations that have received specific approval from the Tennessee General Assembly may legally conduct a raffle.
- Donation Bin Signage: Collection receptacles (bins) for clothing or household items must have permanent signage on at least two sides, including the front. This signage must clearly identify the charity and provide contact information.
- Financial Transparency: If an organization spends less than 25% of its total contributions on its actual charitable programs or mission, it is required to file a specific notice with the Secretary of State explaining the allocation of funds.
- Commercial Coventurers: Any business conducting a "charitable sales promotion" (e.g., "10% of this purchase goes to charity") must have a written agreement with the charity before the promotion begins.
How to File a Complaint
If you suspect a charity is fraudulent or is violating state rules, follow these escalation steps:
- Tennessee Secretary of State: Use the official online complaint form provided by the Division of Charitable Solicitations and Gaming. This is the most effective route for reporting unregistered solicitors or non-compliant donation bins.
- Tennessee Attorney General: For cases involving widespread fraud, identity theft, or deceptive marketing, file a complaint with the Consumer Protection Division.
- Federal Trade Commission (FTC): If the scam occurred via telephone or the internet, reporting it to the FTC helps federal authorities track national trends in charity fraud.
Evidence and Action Checklist
Before filing a complaint, gather as much documentation as possible to support the investigation.
| Category | What to Collect |
|---|---|
| Solicitation Details | Name of the person who contacted you, the organization's name, and the date/time of contact. |
| Marketing Materials | Copies of flyers, mailers, or screenshots of social media advertisements and websites. |
| Payment Records | Receipts, canceled checks, or bank statements showing the transaction (do not share full account numbers). |
| Physical Evidence | Photos of donation bins that lack required signage or contact information. |
| Verification | A screenshot from the Secretary of State’s "Search Charities" database showing the entity is not registered. |
What Does Not Control the Issue
It is important to distinguish between state regulatory authority and other legal frameworks:
- Refund Guarantees: Filing a complaint with the state does not guarantee a refund of your donation. State agencies focus on regulatory compliance and law enforcement rather than individual debt collection.
- Credit Card Disputes: If you donated via credit card and believe you were scammed, you must contact your bank to initiate a chargeback under the Fair Credit Billing Act. This is a federal banking process independent of Tennessee state law.
- IRS Status: An organization may have a valid IRS tax-exempt status but still be in violation of Tennessee state solicitation laws. One does not automatically satisfy the other.
FAQ
Can any charity hold a raffle in Tennessee? No. Only 501(c)(3) or 501(c)(19) organizations that are specifically authorized by the Tennessee General Assembly may hold raffles. Most "games of chance" are otherwise prohibited.
How do I know if a donation bin is legal? A legal donation bin in Tennessee must have permanent signage on at least two sides (including the front) that identifies the charity and provides a way to contact them. If the bin is managed by a for-profit company for the charity, that must also be disclosed.
What happens after I file a complaint? The Division of Charitable Solicitations and Gaming reviews the complaint to determine if a violation of the Charitable Solicitations Act has occurred. They may open an investigation, which can lead to administrative fines or a referral to the Attorney General for legal action.
Is there a deadline for charities to renew their registration? Yes. Organizations must renew their registration by the last day of the sixth month following the end of their accounting year. Failure to do so results in the organization being listed as "expired" or "delinquent" in the state database.