Kentucky
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Overall Free to Give Index 6.08/10
Rank 15th
Category Score (0–10) Rank (50 states)
Overall Free to Give Index 6.08 15th
Broad Policy Environment 3.50 46th
Nonprofit Freedom 6.62 19th
Donor Confidence 8.13 1st

Highlights

  • Exceptional donor confidence: Kentucky is tied with Iowa, Kansas, and Montana for 1st in this category, with donor standing, donor privacy protections, and generally deductible contributions.
  • Moderate nonprofit freedom: The state ranks 19th in Nonprofit Freedom, supported by zero-dollar registration and annual fees and relatively modest reporting requirements for charities. Its paid solicitor requirements, however, are some of the most burdensome in the country.
  • Predictable regulatory process: New regulations require legislative approval, giving nonprofits a stable and consistent environment for navigating compliance obligations.
  • Very weak broad policy environment: Kentucky ranks 46th in the Broad Policy Environment, reflecting restrictive occupational licensing rules and limited economic freedom.
  • Weak donor intent protections: Donor gifts to an endowment can still be modified by the Philanthropy if the funds donated are less than $50,000.

Detailed Scorecard

1. Broad Policy Environment

1A. Occupational Freedom (rescaled 0 to 10) 0.83
1B. Tax Competitiveness (rescaled 0 to 10) 3.87
1C. EFNA (0 to 10) 5.80

2. Nonprofit Freedom

2A. Charitable Startup Regulations

Requires charitable registration? Yes
Top Registration Fee $0.00
Minimum Registration Fee $0.00
Top Incorporation Fee $40.00
Minimum Incorporation Fee $40.00

2B. Charitable Reporting Regulations

Requires Annual Report? Yes
Top Annual Fee $0.00
Minimum Annual Fee $0.00
Requires Additional Corporate Filings Yes
Other Fees $15.00
Tiered Fee Structure No
Overlapping Regulators No

2C. Paid Solicitor Requirements

Commercial Fundraisers Must Register with the State Yes
Paid Solicitor Registration Fee $300.00
Paid Solicitor Renewal Fee $300.00
Surety Bond for Professional Fundraisers $25,000.00
Must Paid Solicitors Required to Report to the State in Order to Start Fundraising? Yes
Fundraising Consultant Registration Required Yes
Annual Financial Reporting by Commercial Fundraisers Required Yes
Must File Contracts Between Charities and Commercial Fundraisers Yes
Individual solicitors employed by professional fundraisers must register separately? Yes

2D. General Audit threshold (revenue)

General Audit threshold (revenue) N/A

3. Donor Confidence

3A. State has Never Introduced Disclosure No
3B. State has Privacy Law Yes
3C. State gives Donors Standing Yes
3D. State has UPMIFA Protections Yes (weak)
3E. Donations are Generally Deductible Yes
3F. General Sales Tax Exemption Yes
3G. State has Never Proposed DAF Restrictions Yes
3H. New Regulations Require Legislative Approval Yes