Indianapolis nonprofits operate under Indiana Secretary of State biennial reporting ($20), Indiana Attorney General registration for charitable gaming and certain solicitation activities, Marion County property tax exemption through the County Assessor, and the Indianapolis-Marion County consolidated UniGov vendor system. Indiana does not have a general charitable solicitation registration requirement that applies to most nonprofits, making Indiana one of the lighter-touch state regimes — but the Attorney General does regulate charitable gaming and certain professional solicitor activity.
An Indianapolis youth services nonprofit hosted its first annual casino night fundraiser as a board-led event. The board chair handled logistics personally, including renting tables, hiring dealers, and selling chips. The event raised $48,000 — a strong result. Three weeks later, the executive director received an inquiry from the Indiana Gaming Commission asking for the organization’s Charity Game Night License number. The board had not obtained one. Resolving the matter required filing a late license application, paying penalties, and committing to obtain advance licensing for any future gaming events. The IGC also requested supporting documentation showing how the proceeds had been spent on the organization’s exempt mission, which the organization had fortunately tracked carefully.
Indianapolis’s compliance environment is among the lighter at the state level for general charitable activity, but charitable gaming is actively regulated. The Indiana Secretary of State handles biennial business entity reports through INBiz. Indiana does not impose general charitable solicitation registration, but the Indiana Gaming Commission Charity Gaming Division licenses raffles, bingo, and charity game events — a requirement frequently missed by first-time fundraising committees. The Indiana Department of Revenue administers sales tax exemption through Form NP-20A. At the local level, Indianapolis-Marion County operates as a consolidated UniGov, simplifying vendor registration and contracting compared to cities with separate city and county systems.
The federal compliance layer applies fully — Form 990, single audit at $1,000,000 in federal expenditures, and Uniform Guidance on all federal pass-through funds including HUD CDBG, ESG, and HHS grants flowing through Indiana agencies and Indianapolis-Marion County. Lilly Endowment’s Indianapolis headquarters means many local nonprofits receive substantial private foundation funding with its own grant agreement terms. The questions below address Indianapolis-specific compliance. For Indiana-wide startup guidance, see the Indiana nonprofit startup guide.
Implementation realities and migration notes
Mid-sized nonprofits in this category typically inherit a tangle of restricted-fund histories: federal pass-throughs, state agency contracts, family-foundation grants, and partner funding stretching back many years. Migrating that history cleanly is not optional — auditors and program officers will ask questions that require a year-by-year reconstruction. Implementation timelines run six to ten weeks for organizations that scope the data inventory before signing. Cutting corners on migration to chase a fast launch usually surfaces gaps during the next single-audit cycle, and the cost of fixing those gaps after the fact is meaningfully higher than doing migration right at the start.
Plan accordingly, and require any vendor on the shortlist to demonstrate restricted-fund handling, grant tracking, and donor record migration on a representative sample of your actual historical data before you sign. Vendors that decline to demo on real data are filtering you out for a reason. The demo on your data is where the gaps surface — both the gaps in the vendor’s product and the gaps in your existing records that you will need to clean up regardless of which system you choose. Use that demo to set realistic expectations with the board and the audit committee about timeline and scope before contracts get signed.
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Indiana nonprofit business entity report is filed every two years with a $20 fee for nonprofit corporations.
Lilly Endowment is one of the largest private foundations in the United States, with assets exceeding $50 billion and a heavy focus on Indiana-based grantmaking.
Indianapolis-Marion County consolidated government — combines most city and county functions into a single governmental structure dating to 1970.
DEFINITION
INBiz
Indiana Secretary of State online business services portal — used for biennial business entity reports and entity searches.
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IN Gaming Commission Charity Gaming Division
Indiana state office that licenses and regulates charitable gaming including raffles, bingo, and charity game nights.
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Form NP-20A
Indiana Department of Revenue Nonprofit Application for Sales Tax Exemption — the form used to obtain Indiana sales tax exemption.
Q&A
What is Indiana's stance on online charitable solicitation by Indianapolis nonprofits?
Indiana does not require Indianapolis nonprofits to register for online solicitation reaching Indiana residents. However, online solicitation accessible to residents of registration states may trigger registration in those states under the Charleston Principles framework. Many Indianapolis nonprofits register in California, New York, and Florida even though Indiana itself does not require registration.
Q&A
How does UniGov simplify or complicate compliance compared to separate city/county systems?
UniGov simplifies compliance by consolidating most city and county functions into a single government structure with one vendor registration system, one procurement office, and one audit function. This reduces duplication compared to cities like Detroit or Charlotte where city and county systems are independent. However, certain functions remain separate (such as some township-level services), and federal compliance regimes apply identically regardless of UniGov consolidation.
Q&A
Can a small Indianapolis nonprofit operate without registering for charitable gaming?
Indiana exempts certain very small gaming activities from licensing, but most fundraising raffles, bingo, and casino-style events require an Indiana Gaming Commission license. Operating unlicensed gaming exposes the organization to civil penalties and criminal liability under Indiana law. Even single-event fundraising raffles typically require a Special Raffle License unless they fall within narrow statutory exemptions.
Frequently asked
Frequently Asked Questions
What is the Indiana Secretary of State biennial report?
Indiana nonprofit corporations file a Business Entity Report with the Indiana Secretary of State every other year. The fee for nonprofit corporations is $20 (online filing). The report is due in the anniversary month of the nonprofit's incorporation. Indiana is one of the few states that uses biennial rather than annual reporting for nonprofit corporations. The report confirms registered agent, principal office address, and officer information. Failure to file results in administrative dissolution after a grace period. Filings are submitted online through INBiz, the SOS portal.
Does Indiana require general charitable solicitation registration?
No. Indiana is one of approximately twelve states without a general charitable solicitation registration requirement. Most Indianapolis nonprofits soliciting donations from Indiana residents do not need to register with the Indiana Attorney General for solicitation purposes. The Indiana Attorney General does regulate charitable gaming (raffles, bingo, casino game nights) through the Indiana Gaming Commission, and professional fundraising consultants and paid solicitors operating in Indiana have their own registration requirements. If your Indianapolis nonprofit solicits in other states, those states' registration regimes apply.
What is Indiana charitable gaming registration and when does it apply?
Indiana regulates charitable gaming through the Indiana Gaming Commission's Charity Gaming Division. Nonprofits conducting raffles, bingo, charity game nights, festival games, or door prize events must obtain the appropriate license before the event. Common license types include the Annual Charity Gaming License (for organizations conducting more than three events per year), Special Bingo License, Charity Game Night License, and Raffle License. License fees vary by activity and projected gross receipts. Recordkeeping and post-event reporting are required for all licensed gaming.
How does Marion County property tax exemption work for Indianapolis nonprofits?
Property tax exemption in Marion County is processed through the Marion County Assessor's Office under Indiana Code 6-1.1-10. Qualifying 501(c)(3) organizations file Form 136 (Application for Property Tax Exemption) with the Assessor by April 1 for the current tax year. The property must be owned by the nonprofit and used predominantly for exempt purposes. Indiana property tax exemption analysis includes both ownership and use tests, and partial exemptions are common when properties have mixed use. The Indiana Board of Tax Review provides appellate authority.
How does the Indianapolis UniGov vendor system work for nonprofits?
Indianapolis-Marion County operates a consolidated government (UniGov) that combines most city and county functions. The UniGov vendor registration system is administered through the Office of Finance and Management Procurement Division. Nonprofits seeking contracts with Indianapolis or Marion County departments — including the Office of Public Health and Safety, the Department of Metropolitan Development, and the Office of Audit and Performance — register through this single system. Documentation includes W-9, IRS determination letter, certificate of existence from the IN SOS, and insurance certificates.
What are Indiana's audit requirements for nonprofits?
Indiana does not impose state-level audit thresholds for general nonprofit operations because Indiana lacks a general charitable solicitation registration regime. Audit requirements for Indianapolis nonprofits are typically driven by federal single audit thresholds ($1,000,000 in federal expenditures), grantor and donor requirements, and specific Indiana state contract terms. Many large Indianapolis nonprofits voluntarily obtain annual audits as a governance best practice and to satisfy lender, foundation, and donor requirements.
How do Indianapolis nonprofits obtain Indiana sales tax exemption?
File Form NP-20A (Nonprofit Application for Sales Tax Exemption) with the Indiana Department of Revenue. Approved 501(c)(3) organizations receive a Nonprofit Sales Tax Exemption Certificate. The exemption applies to purchases used in furtherance of exempt purposes, presented at point of sale via Form ST-105 General Sales Tax Exemption Certificate. Sales made by the nonprofit are typically subject to sales tax unless they qualify under the limited fundraising exception (less than 30 days per year, with conditions). Annual Form NP-20 filings may be required.
What insurance does Indianapolis UniGov typically require on nonprofit contracts?
Indianapolis-Marion County contracts commonly require general liability insurance ($1M per occurrence / $2M aggregate is standard), workers' compensation as required by Indiana law, auto liability when transportation is involved, and professional liability for service contracts. Insurance certificates must name Indianapolis-Marion County as additional insured. Specific limits are set in the solicitation. Lapses in coverage constitute contract default. The risk management function reviews compliance during contract execution.
What does the federal single audit require for Indianapolis nonprofits?
If your Indianapolis nonprofit expends $1,000,000 or more in federal awards in a fiscal year, a single audit under 2 CFR 200 Subpart F is required. Federal pass-through funds from Indiana state agencies and Indianapolis-Marion County (HUD CDBG, ESG are common) count toward the threshold. The audit must be completed within nine months of fiscal year-end and submitted to the Federal Audit Clearinghouse. Indiana state contracts may impose additional audit requirements at agency-specific thresholds.
Are Indianapolis nonprofits subject to Indiana adjusted gross income tax?
Indiana generally exempts 501(c)(3) organizations from state adjusted gross income tax on activities related to their exempt purpose. Unrelated business income subject to federal UBIT is also subject to Indiana income tax. The exemption is recognized by the Indiana Department of Revenue based on federal 501(c)(3) status. Form NP-20 (Nonprofit Organization's Annual Report) is filed annually with the IN DOR for organizations that have unrelated business income or that meet certain other criteria.
How does the Indiana Attorney General regulate professional fundraisers?
Professional fundraising consultants and paid solicitors operating in Indiana must register with the Indiana Attorney General's Office. Contracts between charities and professional fundraisers must comply with Indiana Code disclosure requirements. While Indiana does not impose general solicitation registration on the charity itself, charities are responsible for verifying that any professional fundraiser they engage is properly registered. Contracting with an unregistered fundraiser can expose the charity to liability.
Are there special considerations for Indianapolis nonprofits operating with Lilly Endowment funding?
Yes. Lilly Endowment is one of the largest private foundations in the United States and headquartered in Indianapolis. Many Indianapolis nonprofits receive substantial Lilly Endowment grants. While private foundation grants are not subject to Uniform Guidance, Lilly Endowment imposes its own grant agreement terms including reporting cadence, budget compliance, and outcome measurement. Most Lilly grants do not flow federal pass-through dollars, so single audit thresholds are typically not affected by Lilly funding alone.
