Tennessee
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Overall Free to Give Index 5.00/10
Rank 26th
Category Score (0–10) Rank (50 states)
Overall Free to Give Index 5.00 26th
Broad Policy Environment 4.85 21st
Nonprofit Freedom 3.65 44th
Donor Confidence 6.50 12th

Highlights

  • Strong donor confidence: Tennessee ranks 12th in this category, benefiting from donor privacy protections, generally deductible charitable contributions, a DAF-friendly environment, and a predictable regulatory process.
  • Moderately favorable policy climate: The state ranks 21st in the Broad Policy Environment, driven by high economic freedom (2nd in the country) and a competitive tax code. Its score is hurt, however, by burdensome occupational licensing regulations (where it ranks 49th).
  • Legislative oversight of rulemaking: New regulations must pass through the legislature, offering stability and clarity for nonprofit organizations.
  • Weak nonprofit freedom: Tennessee ranks 44th in Nonprofit Freedom, requiring registration, annual renewals, substantial fees, significant reporting obligations for paid solicitors, and annual audits.
  • Limited protection of charitable assets: Tennessee provides no donor standing and maintains very weak UPMIFA safeguards, offering minimal legal protection for restricted gifts and endowments.
  • Legislative disclosure risk: The Tennessee legislature has introduced donor disclosure legislation in recent years.

Detailed Scorecard

1. Broad Policy Environment

1A. Occupational Freedom (rescaled 0 to 10) 0.50
1B. Tax Competitiveness (rescaled 0 to 10) 5.76
1C. EFNA (0 to 10) 8.30

2. Nonprofit Freedom

2A. Charitable Startup Regulations

Requires charitable registration? Yes
Top Registration Fee $50.00
Minimum Registration Fee $0.00
Top Incorporation Fee $100.00
Minimum Incorporation Fee $100.00

2B. Charitable Reporting Regulations

Requires Annual Report? Yes
Top Annual Fee $240.00
Minimum Annual Fee $80.00
Requires Additional Corporate Filings Yes
Other Fees $20.00
Tiered Fee Structure Yes
Overlapping Regulators Yes

2C. Paid Solicitor Requirements

Commercial Fundraisers Must Register with the State Yes
Paid Solicitor Registration Fee $250.00
Paid Solicitor Renewal Fee $250.00
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 No
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? No

2D. General Audit threshold (revenue)

General Audit threshold (revenue) $1,000,000.00

3. Donor Confidence

3A. State has Never Introduced Disclosure No
3B. State has Privacy Law Yes
3C. State gives Donors Standing No
3D. State has UPMIFA Protections Yes (very 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