Two Reports Track State Fees and Requirements for Charities and Their Advisers

Thirty-two states that require nonprofit organizations to register before soliciting donations within their borders

now accept a standardized form for that purpose, according to a new report by the Giving USA Foundation, a unit of the American Association of Fundraising Counsel Trust for Philanthropy.

And legislatures in 15 states have recently passed — or have considered making adjustments to — laws governing registration, oversight, and accountability of nonprofit organizations, according to a second report.

The state proposals are being monitored by the National Council of Nonprofit Associations, an umbrella organization for state charity associations located in Washington.

The Giving USA report — “Annual Survey of State Laws Regulating Charitable Solicitations” — describes the registration requirements for nonprofit groups and their fund-raising advisers that were in place as of January 1, 2005.

The report also provides information about the regulatory agencies, reporting dates and requirements, and solicitation disclosures required of charitable organizations.

In addition to the 32 states, the standardized registration form, which was introduced in 1997 to reduce the paperwork burden on nonprofit organizations that operate in more than one state, is also accepted by the District of Columbia.

Costs Vary

The requirements and fees for charities and their advisers vary significantly by state.

For example, charities in New Hampshire pay a one-time registration fee of $25, while charities in Rhode Island pay a $75 fee each year.

Five states currently have no registration or other special requirements for nonprofit groups and paid solicitors: Delaware, Idaho, Montana, Nebraska, and Wyoming.

The chart above contains excerpts from the report, which is the topic of the first edition of Giving USA Quarterly, a new publication of the Giving USA Foundation that offers research into trends in philanthropy and practical information that complements the data.

Meanwhile, the report by the National Council of Nonprofit Associations shows that state lawmakers continue to consider changes to statutes that could affect nonprofit organizations.

For example, in April, Kansas amended its charitable-solicitations law to generally require that nonprofit organizations not solicit funds unless they first file a copy of their federal informational tax returns with the state.

The new law makes a big change in the size of charities that are required to file audited financial statements with authorities.

Under the new statute, organizations are required to sub-mit audited statements if they receive contributions of more than $500,000 during their most recent fiscal year. The previous threshold for filing such financial statements was $100,000.

Copies of the Giving USA Quarterly report — Issue 1, 2005 — may be obtained for $35 each from the trust by calling (847) 375-4709. Copies may also be ordered through the trust’s Web site (https://www.aafrc.org/secure).

A summary of recent state legislative actions may be found on the Web site of the National Council of Nonprofit Associations, http://www.ncna.org/index.cfm?fuseaction=Page.viewPage&pageId=555.