CORPORATE TRANSACTIONS & COMPLIANCE BLOG

Nevada Establishes Charitable Registration Requirement for Nonprofits

By: Ron Barrett, COGENCY GLOBAL INC. on Mon, Dec 23, 2013

Charitable Registration Requirements resized 600On May 28, 2013, Nevada Governor Brian Sandovol signed Assembly Bill No. 60 (AB 60) into law.  The bill is effective January 1, 2014, and contains provisions that will affect filing requirements for nonprofits soliciting charitable contributions in Nevada.

AB 60 requires every nonprofit corporation formed under NRS Chapter 82 that has charitable status with the IRS that intends to solicit tax deductible charitable contributions in Nevada to file a Charitable Solicitation Registration Statement. This registration gives the public information about nonprofit corporations soliciting charitable contributions in Nevada. It does not validate the nonprofit or its activities, but does show that it has complied with filing requirements necessary to solicit charitable contributions.

Some of the key changes include:

  • Nonprofits that are soliciting in Nevada must form or qualify to conduct business in the state and complete an additional Charitable Solicitation Registration Statement [excluding religious organizations – See AB 60 Section 12 (6)(a)].
  • A searchable website with access to information regarding all charitable nonprofits that filed the registration statement will be available to the public.
  • The establishment of disclosure requirements when a nonprofit or other entity solicits charitable donations, including electronic solicitations, in Nevada.

Fortunately, based on pending regulations as of 9/19/2013, which are subject to finalization by the Nevada legislature (tentatively scheduled for 12/20/2013), AB 60 does not create an additional filing office. Instead, the new law will require additional information be provided to the Nevada Secretary of State on a Charitable Solicitation Registration Statement (subject to finalization), if an organization is soliciting in Nevada for charitable contributions. The one-page form will not be required of nonprofits that are not soliciting charitable contributions in Nevada. Effective January 1, 2014, the Charitable Solicitation Registration Statement will be filed with a nonprofit’s Articles of Incorporation (pursuant to NRS Chapter 82), or Qualification to do Business in Nevada (pursuant to NRS Chapter 80), and/or when an Annual List of Officers and Directors is filed.

Some of the key requirements of the Charitable Solicitation Registration Statement include the following:

  • Names of Nonprofit Corporation (as filed with the Nevada Secretary of State, as registered with the Internal Revenue Service and names under which contributions are solicited)
  • Places of Business (address and telephone of principal place of business, of any office in Nevada OR that of the custodian of financial records)
  • Other Requirements include a web address, USA Patriot Act certification, Federal Tax ID and tax exempt status, names and addresses of executive personnel, fiscal year (day and month), and the following information from the nonprofit’s most recent IRS Form 990: total revenue, total expenses, revenue less expenses, total assets, total liabilities and net assets or funds balances (organizations that file IRS Form 990N or have not filed a Form 990, must provide a good faith estimate of the above financial numbers for the most recent fiscal year)
  • Signature of an officer of the nonprofit corporation

The Nevada Secretary of State anticipates posting additional information on its website by mid-December. Also, the Alliance for Nevada Nonprofits has some excellent resources regarding AB 60, and a webinar, AB 60 Compliance Toolkit), which is scheduled for 12/30/2013. For more details and information on other changes contained in AB 60, you can access the full summary posted by the Nevada Secretary of State here (see page 5). To view the full text of AB 60, click here, and for the proposed regulations (LCB File No. R068-13), click here.

 

This article is provided for informational purposes only and should not be considered, or relied upon, as legal advice.

Topics: Nonprofit Registration and Compliance, Charitable Solicitation Registration