Author Archive
NY Improves Extension Request Process for Annual Financial Reporting
Posted by: | CommentsNew York has improved the process for requesting an extension to file charity registration annual financial reports. Now an organization can request either a 90 day extension or a 180 day extension, instead of two separate 90 day requests. Requests must be sent by email to charities.extensions@ag.ny.gov.
Extension requests must contain the term of the extension, name of the organization, their NY Charities Bureau Registration #, and EIN # in the subject line. Information straight from the New York Attorney General’s website, http://www.charitiesnys.com/charities_new.jsp
- For a 90 day extension the subject line should read: Re: 90, ABC Charity, 01‐23‐45, 12‐3456789
- For a 180 day extension the subject line should read: Re: 180, ABC Charity, 01‐23‐45, 12‐3456789
When completing the New York Annual Financial Report (CHAR 500) pay close attention to the instructions as it can be a bit confusing.
Florida Charity Registration Legislation Adds New Requirments
Posted by: | CommentsThe Florida Department of Agriculture and Consumer Affairs have recently been giving charity registration and professional fundraisers a lot of attention. Florida has the dubious honor of being home to 11 of the top 50 WORST charities according to the Center for Investigative Reporting; http://cironline.org/.
The new legislation aims to “prevent the misuse of Floridians’ charitable contributions by deterring fraudulent and deceptive organizations from soliciting contributions in [the] state.”
How does this new legislation affect the charity registration process? According to the LFNP (The Law Firm for Non-profits at http://www.lfnp.com/) there are two key changes:
- Any charity that solicits contributions in or from Florida residents must adopt a conflict of interest policy, which must require annual certification of compliance with the policy by all directors, officers, and trustees of the charity. A copy of the annual certification must be submitted to the Department with its annual registration statement.
- A charity that has more than $1 million in total revenue and spends less than 25% of it on program service costs must complete an additional Department form, including the dollar amount and percentage of total revenue allocated to employees, fundraising, travel expenses, overhead, and charitable programs. The form must also detail any transactions with insiders (e.g., directors and officers).
What do you think about the increasing administrative requirements for charity registration?
Charity Registration VS Charity De-registration: Recipe for Success
Posted by: | CommentsRecently Clearly Compliant has had a string of clients and potential clients seeking assistance to “de-register” in specific states. It made me think of a saying I heard all too frequently from my Mom, “Sarah, your eyes are bigger than your stomach.” My Mom was an amazing cook who could turn mud into Mississippi Mud Pie, but let’s face it, with six kids to feed, it was never a good thing to see food wasted. I am NOT talking about greed. I AM talking about how easy it is to think we need more than we do! What is the recipe for success in state charity registration?
In my experience nonprofits that skip the assessment phase may end up registering in states where funds are not solicited. “Universal” registration is a term used in the industry and there are organizations that clearly need to register in every state where charity registration is required for fundraising. It sounds good. It sounds easy. However, for many small and medium size nonprofits a best practice is to complete a thorough assessment based on 3 – 5 years history from the donor database, mailing lists, member addresses, grant applications, website, social media, and all other fundraising activity. How much is the organization raising in each state? How many donors? What are the giving trends? Then, complete a cost/benefit analysis for each state that includes a comparison of funds raised to expenses for state registration. For example, if total cost to register in one state is $250 and donations are from two people totaling $50, consider stopping the solicitations. There are always exceptions….an organization may receive $0 from a state but know they will be applying for a grant or there is an opportunity for a future gift and the organization wants to be poised and ready to accept.
Like many great recipes, a charity registration assessment takes work. But thorough prep work may just leave more $$$ in your organization’s pot for mission accomplishment!
Tennessee Charity Registration Update: Reduction in Fees!
Posted by: | CommentsGreat news from the great state of Tennessee regarding charity registration! Effective July 1, 2014 charity registration fees for renewing organizations have been reduced by 20%. You may recall that TN bases its fees on a nonprofit’s gross revenues and has a sliding fee schedule. The old fee schedule started at $100 per year and capped at $300. Now, for organizations with gross revenues of under $48,999 the new fee is $80 per year….and so on….. with a cap of $240 for organizations with gross revenues of $500,000 or more. Thank you TN 🙂
In other TN news organizations that do not raise more than $30,000 annually may still apply for an exemption. This was true under the old legislation, too. However, also effective July 1st, the exemption changes from a one-time submission to an annual requirement. This is not such good news….one more due date for small nonprofits to track 🙁
For more information visit the TN Secretary of State website at http://www.state.tn.us/sos/charity/index.htm.
California Charity Registration, Again!
Posted by: | CommentsCalifornia is in the process of adding teeth and money – $1.4 million special fund – to charity registration enforcement. According to the Center for Investigative Reporting: State law requires charities that fundraise in the state to register with the attorney general. The Department of Justice estimates that there are 52,000 delinquent charities in California and at least 130,000 additional charities operate in California despite having failed to register.
On May 27th the California Assembly unanimously passed Assembly Bill No. 2077 to be used by the attorney general to enforce the registration and reporting provisions of the Supervision of Trustees and Fundraisers for Charitable Purposes Act. The bill is now in the Senate and it appears to be smooth sailing on its way to the governor’s desk. Once approved, the legislation will fund the hiring of up to 13 staff positions to:
1) Handle administrative appeals and court actions related to delinquencies.
2) Assist unregistered charities in complying with registration and reporting requirements.
3) Review initial applications and financial reports.
4) Provide public education and protection activities.
Hopefully the addition of staff will shorten the approval time for charity registration in CA. One thing for sure, there will be more attention on compliance!
California Here We Come – CA Charity Registration
Posted by: | CommentsCalifornia, here we come…..just a note to folks outside California in the nonprofit world attempting to register in California for charitable solicitation. As many know, CA is facing serious budget shortfalls. This can impact your nonprofit’s ability to get registered to fundraise in CA, especially if you are in a hurry. CA is complicated; do these four things to ensure compliance:
• Complete the Foreign Nonprofit Corporation Statement and Designation form with careful attention to form directions.
• Once you receive the 7 digit corporate number, immediately file the Franchise Tax Exemption form or your nonprofit may be required to pay $800 annually in taxes; ouch!
• Now, it is finally time to file the charitable registration application, but you are not yet finished yet….
• Within 90 days of receiving your corporate number you must file a Statement of Information form either in hard copy or on-line.
Then annually make sure you complete both a charity registration renewal and statement of information to stay Clearly Compliant!
For more California information on state charity registration requirments visit http://oag.ca.gov/charities.
True Story: Nonprofit fined $4,000 for $68 Dollar Donation
Posted by: | CommentsTrue Story: I found this article from Hearbeat International, On The Leader Board, Issue 1, Volumn 1, to be direct and clear on the need for nonprofit organizations to seek advice regarding state chartiable solicitation registration requirements: http://www.heartbeatservices.org/charitable-solicitation
And they say it best, “True Recommendation: As a leader and board member, you have been entrusted with dollars which you must wisely and efficiently steward. The temptation can be to let such requirements overwhelm you to the point where it is easier to ignore the statute. Resist the temptation.”