Although the article didn't specify, it looks quite logical for Michelle's Angels to want to be able to fundraise nationally. Unlike many nonprofits, it doesn't provide local services -- it primarily uses the Internet to providing emotional support to people in need due to illness or other reasons.
So as long as Michelle's Angels is reaching out to clients around the country, it would make perfect sense for it to ask them to contribute, or to request that their interested friends and family do so. Yet the site currently has to warn donors that it can accept contributions only from two U.S. states, New York and Tennessee, while it works on getting registered in others.
Knoll says, "There should be a not-for-profit national registry or a single, uniform state application and low fees -- or no fees for small charities."
Good idea -- let's hope that message gets to the right ears! In the meantime, for nonprofits struggling with interpreting and meeting the registration requirements, help can be found in the Nolo book, Nonprofit Fundraising Registration: The 50-State Guide, by Stephen Fishman.