TCPA Nonprofit Exemption: How to Stay SMS Compliant

Texting has become a powerful tool for nonprofits to directly engage with their supporters, raise funds, and amplify their missions. To leverage texting effectively and legally, nonprofits must adhere to the Telephone Consumer Protection Act (TCPA) regulations.

While nonprofits have some flexibility under the TCPA, it's crucial to understand the nuances to avoid issues or legal ramifications. This guide will explain what TCPA compliance is, how it works, and how nonprofits can ensure they are using texting correctly. Here's what we'll cover:

• What is the TCPA?
• Key provisions of the TCPA
• Areas of TCPA nonprofit exemption
• How nonprofits can maintain TCPA compliance
• 5 ways nonprofits can use texting within TCPA guidelines

What is the TCPA?

The Telephone Consumer Protection Act (TCPA) is a federal law enacted in 1991 to protect consumers from unwanted and intrusive telemarketing calls, texts, and other communications, such as faxes.

The TCPA sets strict guidelines on how organizations, including nonprofits, can communicate with individuals via phone and text messages. Noncompliance with TCPA regulations can result in significant fines — $500 per violation for unintentional breaches and up to $1,500 per violation for willful or knowing violations. In class-action lawsuits, these per-violation fines multiply quickly: an organization that sends 10,000 noncompliant texts could face exposure of $5 million to $15 million. Even if most cases settle for far less, the legal costs, reputational damage, and operational disruption make compliance essential — not optional.

For a broader view of momoGood's compliance approach, see our TCPA compliance page.

Key provisions of the TCPA

The TCPA governs telecommunications with these primary provisions:

• Prior express written consent: Before sending any text messages, organizations must obtain consent from recipients. The TCPA generally mandates prior express written consent for telemarketing-oriented prerecorded messages to phone numbers, including residential, mobile, and VoIP services. These calls must identify the organization at the beginning, provide a contact number, and offer an automated opt-out mechanism.
• Opt-out mechanism: Text messages must include a clear and easy way for recipients to opt out of future communications. Many compliant organizations use keywords like "STOP" or "STOP2END." Opt-out requests must be honored immediately.
• Identification: Text messages must clearly identify the sender and provide contact information. Sender identification can be done either within the message content or through an automated contact card after opt-in. This ensures transparency and builds trust with recipients.
• Do-Not-Call restrictions: The TCPA prohibits organizations from contacting people on the National Do Not Call Registry for telemarketing purposes. Additionally, organizations cannot make calls for telemarketing purposes without a policy on maintaining their own lists of people who request not to receive calls.
• Time restrictions: The TCPA prohibits calls and texts before 8 AM or after 9 PM in the recipient's local time zone. This applies to all organizations, including nonprofits. A text sent at 9:30 PM — even with consent — is a violation.

While some of these provisions seem oriented toward phone calls, the FCC has consistently interpreted the TCPA to cover text messages as well. Courts have upheld that each individual text message constitutes a separate "call" under the statute, which is why per-violation fines can accumulate so rapidly.

Areas of TCPA nonprofit exemption

Nonprofits are exempt from some provisions of the TCPA. Let's walk through each provision, highlighting any TCPA nonprofit exemptions:

• Prior express written consent: Partially exempt. Tax-exempt nonprofits are partially exempt from this provision. Since nonprofits don't typically call for commercial purposes, they do not need express written consent for prerecorded telemarketing calls to residential lines. For mobile or charge-incurring services (like VoIP), only express consent is needed. However, it's still best practice to obtain prior express written consent whenever possible — it protects your organization and builds donor trust.
• Opt-out mechanism: Not exempt. Nonprofits must always provide opt-out mechanisms for texts and prerecorded calls. There are no exceptions to this requirement.
• Identification: Not exempt. Nonprofits still must identify themselves and provide contact information when contacting people via call or text.
• Do-Not-Call restrictions: Exempt (for solely charitable purposes). As long as nonprofits are reaching out for a solely charitable purpose, they are technically exempt from do-not-call restrictions. However, "solely charitable" is a narrow standard — if your message includes any commercial element, the exemption may not apply.
• Time restrictions: Not exempt. The 8 AM to 9 PM window applies to nonprofits just as it does to commercial callers. There is no charitable exemption for calling hours.

What "solely charitable" actually means

The "solely charitable purpose" standard is the most commonly misunderstood element of nonprofit TCPA exemptions. Here is how to evaluate it:

• Charitable: A text asking for a donation to fund your mission is charitable. A text inviting supporters to a free awareness event is charitable. A text sharing impact stories is charitable.
• Not solely charitable: A text promoting a paid gala ticket is partly commercial (there's a purchase involved). A text advertising merchandise ("Buy our t-shirt to support the cause") is commercial. A text from a nonprofit hospital promoting its paid services is commercial. Even a fundraising text that includes a commercial partner's promotional message may lose the exemption.
• Gray areas: An event with both a free admission and a donation ask is likely charitable. A text promoting a silent auction where items have retail value is arguably commercial. When in doubt, treat the message as requiring full TCPA consent — it's safer than litigating the boundary.

The safest approach: obtain express written consent for all text communications regardless of content type. This eliminates the need to categorize each message and protects your organization if the "solely charitable" standard is ever challenged.

While nonprofits have more flexibility than for-profit businesses regarding consent when sending informational texts or calls, it's crucial to consult with legal counsel to fully understand the specific exemptions and ensure your practices are compliant. The TCPA landscape evolves, and this article is educational guidance, not legal advice.

How nonprofits can maintain TCPA compliance

To comply with the TCPA, nonprofits must implement several best practices in their texting campaigns:

• Obtain clear consent: Implement a robust process for obtaining and recording consent from individuals who wish to receive text messages. You may collect consent through online forms, text-to-join campaigns with a shortcode, donation page checkboxes, or other written agreements.
• Use double opt-in: Though not a strict TCPA regulation, implementing a double opt-in process is a best practice that adds an extra layer of protection. After individuals sign up, send a confirmation message requiring them to reply with a keyword (like "YES") to confirm their subscription. This ensures your list is clean and engaged.
• Provide opt-out instructions: Every message should include instructions on how to opt out, such as replying with "STOP" to unsubscribe. Ensure that opt-out requests are processed immediately and automatically.
• Maintain records: Keep detailed records of all consents, opt-in confirmations, and opt-out requests. This documentation can be crucial in case of legal disputes and ensures you respect constituents' preferences.
• Conduct regular compliance audits: Conduct regular audits of your texting practices to ensure ongoing compliance with TCPA regulations. Review message content, consent records, and opt-out processes on a consistent schedule — quarterly is a good cadence for most organizations.

Practical consent collection examples

The most common (and legally sound) ways to collect TCPA consent for nonprofit texting:

• Donation page checkbox: Add a clearly labeled, unchecked-by-default checkbox to your online donation form: "I agree to receive text messages from [Organization Name] at the phone number provided. Message and data rates may apply. Reply STOP to opt out." The checkbox must not be pre-checked — the donor must actively select it.
• Text-to-join keyword: Promote a keyword (e.g., "Text GIVE to 12345") on your website, social media, and printed materials. When a supporter texts the keyword, your system sends an automated confirmation: "Thanks for joining [Organization Name]! You'll receive up to 4 messages/month. Reply STOP to opt out. Msg&data rates may apply." This creates a clear written record of consent.
• Event registration form: Include a text opt-in field during event registration. The consent language should be separate from the event registration terms — bundling consent with other agreements may not hold up if challenged.
• Paper forms: At in-person events, use a paper sign-up form with clear consent language. Photograph or scan the forms for your records. The consent language must be on the same page as the signature — don't rely on terms printed on the back of a different form.

What good consent records look like

If your organization is ever challenged on TCPA compliance, your records need to show:

• The exact date and time of consent
• The method of consent (web form, text keyword, paper form)
• The exact language the supporter agreed to
• The phone number that was provided
• Any subsequent opt-out requests and when they were processed

Your texting platform should store this automatically. If it doesn't — or if you're collecting consent through a separate system — build a process to centralize records. A consent record that can't be retrieved quickly is almost as problematic as no record at all.

5 ways nonprofits can use texting within TCPA guidelines

Nonprofits can leverage texting in a variety of ways while staying compliant with TCPA regulations:

1. Fundraising campaigns: Send text messages to supporters with donation requests, including a direct link to donate online. See text donation message examples and templates for inspiration.
2. Event notifications: Keep your community informed about upcoming events, volunteer opportunities, and important updates.
3. Impact stories: Share success stories and testimonials from beneficiaries to inspire and motivate your supporters.
4. Reminders and alerts: Send reminders for events, meetings, and important deadlines to ensure maximum participation.
5. Surveys and feedback: Engage your audience by sending surveys and requesting feedback to improve your programs and services.

Combine these message types within your strategy to engage your supporters in different ways. For more use-case ideas, see 13 ways to use nonprofit SMS.

Compliant message examples

Here are example texts that follow TCPA best practices — each includes sender identification, a clear purpose, and opt-out instructions:

• Fundraising: "[Org Name]: Your $25 gift provides a week of meals for a family in need. Give now: [link]. Reply STOP to opt out."
• Event notification: "[Org Name]: Our annual gala is Sept 15. Register for free: [link]. Reply STOP to unsubscribe."
• Impact story: "[Org Name]: Meet Maria — your donations helped her complete our job training program. Read her story: [link]. Reply STOP to opt out."
• Reminder: "[Org Name]: Reminder — tomorrow is our volunteer day at Lincoln Park, 9 AM. See you there! Reply STOP to opt out."

Notice that every message starts with the organization name (identification), includes a clear purpose, and ends with opt-out instructions. This three-part structure is the simplest way to ensure every message is compliant.

Common TCPA mistakes nonprofits make

Even well-intentioned organizations can stumble. These are the most frequent compliance errors we see:

• Assuming any contact who gave you their phone number consented to texts. A phone number on a donation form is not text consent unless the donor specifically opted in to text communications. Consent to receive phone calls is not consent to receive texts, and vice versa.
• Importing purchased or rented lists. Contacts on a purchased list have not consented to receive texts from your organization. Texting them is a TCPA violation regardless of whether the list vendor claims the contacts are "opted in."
• Failing to honor opt-outs immediately. "Immediately" means automatically and within the same system. If an opt-out requires manual processing, you risk sending additional messages to someone who has already requested to stop — each of which is a separate violation.
• Sending after hours. A well-intentioned year-end appeal sent at 9:15 PM is a violation. Use send-time controls that respect the recipient's local time zone, not your organization's time zone.
• Blending charitable and commercial content. A text promoting a fundraising event that also advertises a sponsor's product may lose the nonprofit exemption. Keep charitable and commercial messaging separate.
• Not updating consent records when phone numbers change. If a supporter changes their phone number, their old consent does not transfer to the new number. You need new consent for the new number, and you need to stop texting the old number (which may now belong to someone else).

Launch TCPA-compliant SMS campaigns with momoGood

When used responsibly, texting can be a powerful tool for nonprofits to connect with their supporters. By understanding and adhering to TCPA regulations, nonprofits can protect themselves from legal risks while building trust and engagement with their audiences. Implement these best practices to ensure your SMS campaigns are compliant, effective, and appreciated by your supporters.

Additionally, work with a platform that understands the nuances of TCPA regulations and will help you stay compliant. momoGood Messaging is an opt-in platform — we require that organizations comply with the TCPA to send messages through our system. Our compliance tools help you manage consent, opt-outs, and identification requirements so you can focus on your mission.

Talk to our team to learn how momoGood can help you run compliant, high-performing text campaigns that drive revenue for your nonprofit.

More compliance and messaging resources

• 13 Ways You Can Use Nonprofit SMS to Further Your Goals — Explore how SMS campaigns can help you reach your goals.
• 21 Text Donation Messages: Examples + Easy Templates — Kickstart your text fundraising campaign with these easy templates.
• 12 Best Text-to-Give Platforms to Raise More Funds — Discover the right text-to-give platform for your organization.
• TCPA Compliance with momoGood
• 10DLC and Short Codes