How Do Not Call Rules Apply to Nonprofit Organizations

Type: Blog
Topic: Do Not Call Solution

Nonprofits that engage in phone and text outreach are generally subject to the Telephone Consumer Protection Act (TCPA) and certain baseline provisions of the FTC’s Telemarketing Sales Rule (TSR). While charitable organizations enjoy exemptions from some TSR requirements (particularly the National DNC Registry), those exemptions are narrow, and nonprofits must still comply with key provisions such as honoring internal opt-outs, identifying themselves clearly, and observing calling-hour limits.

Nonprofits that violate Do Not Call rules can face significant penalties under the TSR and the TCPA, as well as reputational damage with donors. For this reason, it’s important for charitable organizations to have a clear idea of when exemptions apply, when they do not, and what compliance obligations remain in place for every outreach campaign.

In the following sections, you’ll find information on:

When Nonprofits Are Exempt — and When They Are Not

When They Are Exempt

Nonprofits are generally exempt from the National Do Not Call (DNC) Registry when they are conducting outreach for charitable fundraising on their own behalf. This includes calls made by staff or volunteers to solicit donations. In these cases, the organization does not have to scrub numbers against the federal DNC list. Hiring a professional fundraiser does not automatically eliminate the charitable exemption from the National DNC Registry, provided the campaign is exclusively charitable. However, for-profit fundraisers are still directly subject to many TSR provisions, even when calling on behalf of a nonprofit, and must comply with rules such as honoring internal DNC requests and providing required disclosures

When They Are Not Exempt

The exemption disappears as soon as a campaign contains a commercial element, such as promoting goods, services, or for-profit partners. In those cases, the Telemarketing Sales Rule (TSR) applies in full, and calls must be scrubbed against the National DNC Registry.

In addition, the exemption does not apply when the outreach uses technologies or channels that fall under the stricter rules of the Telephone Consumer Protection Act (TCPA):

• For residential landlines, prerecorded or artificial-voice robocalls are permitted without prior consent, but since 2023 they are capped at three within any 30-day period and must include a clear opt-out option.
• For wireless numbers, prerecorded or artificial-voice calls, autodialed calls, and text messages all require prior consent. Charitable status does not create a general exemption for mobile outreach.

Ongoing Compliance Responsibilities

Even when exempt from DNC scrubbing, nonprofits remain bound by specific provisions of the TSR and the TCPA. These rules establish baseline compliance obligations that always apply:

• Honor opt-out requests: Organizations must honor individual opt-out requests immediately. Under the TSR, internal do-not-call lists must be maintained for at least five years. Some states require this to be done for 10 years, and many organizations choose to maintain their lists indefinitely as a best practice.
• Provide clear identification: At the start of a call, the TSR requires that callers identify the charitable organization and provide a contact number or address. For text messages, the sender’s identity must also be clear.
• Follow calling-hour limits: Calls may only be placed between 8 a.m. and 9 p.m. local time for the recipient, as established by the TSR.

Penalties for Non-Compliance

Violating federal Do Not Call laws under the TSR or TCPA can expose nonprofits to serious legal and financial risk:

• TCPA statutory damages: Unlawful calls or texts can lead to damages of $500 per violation. If a violation is “willful or knowing,” courts may impose treble damages, increasing the penalty to $1,500 per violation.
• TSR / DNC violations: Civil penalties under the Telemarketing Sales Rule can be in the tens of thousands of dollars per non-compliant call or text when TSR provisions are violated.
• Class actions and cumulative exposure: Because many violations happen in bulk with multiple calls or texts involved, even small per-call penalties can quickly add up into the millions of dollars. Legal fees, settlements, and liability for hundreds or thousands of violations escalate rapidly.
• Reputational risk: Beyond monetary penalties, nonprofits face loss of donor trust, public scrutiny, and negative press that can reduce fundraising effectiveness long term.

Best Practices for Nonprofit Outreach Campaigns

To reduce risk and maintain credibility with donors, nonprofits should:

• Build a clear opt-out process that records the date, number, and caller for every opt-out request.
• Oversee fundraising vendors by requiring written compliance commitments and conducting regular audits.
• Separate charitable and commercial activity to preserve eligibility for the nonprofit exemption.
• Train staff and volunteers on calling-hour rules, honoring opt-outs, and how to properly identify the organization at the start of a call or within a text.
• Respect channel-specific rules, including the stricter requirements cited above for mobile numbers.

How PossibleNOW Helps Nonprofits Stay Compliant

PossibleNOW helps nonprofits reduce compliance risk while protecting donor relationships.

• DNCSolution® delivers enterprise-grade list scrubbing and internal list management across federal, state, wireless, and internal registries, with detailed reporting and audit trails for defensibility.
• Seamless integrations connect our Do Not Call solution to your CRM and dialer for real-time checks, with options such as litigator list screening, established business relationship management, and mobile risk scoring.
• RegInfoHub consolidates current state and federal requirements, including calling windows and registration rules, so programs stay aligned with changing regulations.
• Compliance Advisory Services assess vendor practices, refine scripts and disclosures, and help nonprofits document controls under the TSR and TCPA.

Strengthen your fundraising results and donor trust with a DNC compliance system that is reliable, auditable, and built for nonprofit outreach. Connect with PossibleNOW today to learn more about our Do Not Call and consent management solutions.

About PossibleNOW

PossibleNOW is the pioneer and leader in customer consent, preference, and regulatory compliance solutions. We leverage our MyPreferences technology, processes, and services to enable relevant, trusted, and compliant customer interactions. Our platform empowers the collection, centralization, and distribution of customer communication consent and preferences across the
enterprise. DNCSolution addresses Do Not Contact regulations such as TCPA, CAN-SPAM and CASL, allowing companies to adhere to DNC requirements, backed by our 100% compliance guarantee.

PossibleNOW’s strategic consultants take a holistic approach, leveraging years of experience when creating strategic roadmaps, planning technology deployments, and designing customer interfaces. PossibleNOW is purpose-built to help large, complex organizations improve customer experiences and loyalty while mitigating compliance risk.