Heavy registration and fee burdens: The state ranks 49th in Nonprofit Freedom, as charities must register, renew annually, undergo regular audits, and pay substantial annual and contractor-related fees that significantly raise compliance costs.
Poor broad policy environment: Massachusetts ranks 39th in the Broad Policy Environment, reflecting a less favorable combination of tax competitiveness and occupational licensing. However, the state’s economic freedom scores are about average.
Limited donor confidence: Massachusetts ranks 35th in this category, offering no donor standing, very weak UPMIFA safeguards, and no donor privacy protections.
Detailed Scorecard
1. Broad Policy Environment
1A. Occupational Freedom (rescaled 0 to 10)
2.67
1B. Tax Competitiveness (rescaled 0 to 10)
2.33
1C. EFNA (0 to 10)
6.72
2. Nonprofit Freedom
2A. Charitable Startup Regulations
Requires charitable registration?
Yes
Top Registration Fee
$100.00
Minimum Registration Fee
$100.00
Top Incorporation Fee
$35.00
Minimum Incorporation Fee
$35.00
2B. Charitable Reporting Regulations
Requires Annual Report?
Yes
Top Annual Fee
$2,000.00
Minimum Annual Fee
$35.00
Requires Additional Corporate Filings
Yes
Other Fees
$15.00
Tiered Fee Structure
Yes
Overlapping Regulators
No
2C. Paid Solicitor Requirements
Commercial Fundraisers Must Register with the State
Yes
Paid Solicitor Registration Fee
$1,000.00
Paid Solicitor Renewal Fee
$1,000.00
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?