Demystifying State Charity Registration NonProfit Direct Delivered by Tony Martignetti, Esq. Martignetti Planned Giving Ad...
Where We ’ re Headed <ul><li>•  What is Charity Registration </li></ul><ul><li>•  Why comply with the laws </li></ul><ul><...
What Is Charity Registration <ul><li>Requirements throughout the states and D.C. that charities register with authorities-...
Why Comply With The Laws <ul><li>•  IRS Form 990 </li></ul><ul><li>•  Criminal & civil penalties, e.g.: </li></ul><ul><li>...
Why Comply With The Laws <ul><li>•  Recent enforcements </li></ul><ul><li>•   Board member liability; fiduciary duty </li>...
Where We Are <ul><li>   What is Charity Registration </li></ul><ul><li>   Why comply with the laws </li></ul><ul><li>•  ...
Where Do You Register <ul><li>Everywhere you solicit, except where you ’ re exempt </li></ul>
What Is A Solicitation <ul><li>•  Varies state to state </li></ul><ul><li>•  A few neat categories </li></ul>
What Is A Solicitation <ul><li>•  Mere existence of website accepting donations:  “ Donate Now ”  button </li></ul><ul><li...
What Is A Solicitation <ul><li>•  Website accepting donations + induce donors to it </li></ul><ul><li>- email, US mail, ph...
What Is A Solicitation <ul><li>•  Ask for charitable support by </li></ul><ul><li>- Email </li></ul><ul><li>- US Mail </li...
Even If You Are Soliciting <ul><li>You might be exempt </li></ul><ul><li>Exemptions vary drastically across states </li></...
Where We Are <ul><li>   What is Charity Registration </li></ul><ul><li>   Why comply with the laws </li></ul><ul><li>  ...
How Do You Register-Forms <ul><li>•  Vary drastically across the states </li></ul><ul><li>•  Unified Registration Statemen...
How Do You Register-Docs <ul><li>•  Typical documents </li></ul><ul><li>- By laws & articles of incorporation </li></ul><u...
How Do You Register-Fees <ul><li>A few neat categories </li></ul><ul><ul><li>- Flat </li></ul></ul><ul><ul><li>- Tiered by...
Where We Are <ul><li>   What is Charity Registration </li></ul><ul><li>   Why comply with the laws </li></ul><ul><li>  ...
Plan For How To Get Going-1 <ul><li>•  Charity starts at home </li></ul><ul><li>-- enforcement also starts at home </li></...
Plan For How To Get Going-2 <ul><li>•  Very high fundraising revenue states, if any </li></ul><ul><li>- dollar amount  </l...
Plan For How To Get Going-3 Web Based Fundraising <ul><li>•  Do you need every state? </li></ul><ul><li>-- if not, take sa...
Plan For How To Get Going-3 Non Web Based Fundraising <ul><li>•  Where solicit most </li></ul><ul><li>-- query database fo...
Plan For How To Get Going-4 <ul><li>•  Don ’ t be intimidated or overwhelmed </li></ul><ul><li>•  Follow a plan </li></ul>...
Continuing Education <ul><li>•  http://www.nasconet.org </li></ul><ul><li>•  URS, http://www.multistatefiling.org </li></u...
Continuing Education <ul><li>•  My book:  Charity Registration: State-by-State Guidelines for Compliance </li></ul><ul><li...
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Charity Registration Demystified

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The slide deck from my teleseminar on Charity Registration for NonProfit Direct.

I covered:

-- What state Charity Registration is
-- Why you should comply
-- Where you register
-- What is a solicitation
-- How do you register
-- Plan for getting started
-- Continuing Education

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Charity Registration Demystified

  1. 1. Demystifying State Charity Registration NonProfit Direct Delivered by Tony Martignetti, Esq. Martignetti Planned Giving Advisors, LLC December 15, 2011
  2. 2. Where We ’ re Headed <ul><li>• What is Charity Registration </li></ul><ul><li>• Why comply with the laws </li></ul><ul><li>• Where do you register </li></ul><ul><li>• What is a solicitation </li></ul><ul><li>• How do you register </li></ul><ul><li>• Plan for how to get going </li></ul><ul><li>• Continuing Ed. </li></ul>
  3. 3. What Is Charity Registration <ul><li>Requirements throughout the states and D.C. that charities register with authorities--or be exempt--everywhere they solicit </li></ul>
  4. 4. Why Comply With The Laws <ul><li>• IRS Form 990 </li></ul><ul><li>• Criminal & civil penalties, e.g.: </li></ul><ul><li>-- FL: 3rd degree felony; 5 yrs/$5000 & narrow exemptions </li></ul><ul><li>-- AZ: Class 1 misdemeanor & scant exemptions </li></ul><ul><li>-- IL: civil fine; $500 to $1,000 </li></ul><ul><li>-- PA: 1 st degree misdemeanor; $10,000; 5 years </li></ul><ul><li>-- GA: civil fine; $25,000 </li></ul><ul><li>-- NJ: civil penalty up to $10,000 </li></ul><ul><li>-- DC: civil fines, penalties, fees </li></ul><ul><li>-- VA: misdemeanor; 1 yr/$1000 fine </li></ul>
  5. 5. Why Comply With The Laws <ul><li>• Recent enforcements </li></ul><ul><li>• Board member liability; fiduciary duty </li></ul><ul><li>• Gift challenge from donor or heir </li></ul><ul><li>-- Disgruntled donor hires enterprising attorney </li></ul><ul><li>• Right thing to do: operate within the laws </li></ul>
  6. 6. Where We Are <ul><li> What is Charity Registration </li></ul><ul><li> Why comply with the laws </li></ul><ul><li>• Where do you register </li></ul><ul><li>• What is a solicitation </li></ul><ul><li>• How do you register </li></ul><ul><li>• Plan for how to get going </li></ul><ul><li>• Continuing Ed. </li></ul>
  7. 7. Where Do You Register <ul><li>Everywhere you solicit, except where you ’ re exempt </li></ul>
  8. 8. What Is A Solicitation <ul><li>• Varies state to state </li></ul><ul><li>• A few neat categories </li></ul>
  9. 9. What Is A Solicitation <ul><li>• Mere existence of website accepting donations: “ Donate Now ” button </li></ul><ul><li>- Passive solicitation </li></ul><ul><li>- DC, VA, FL, AZ, NY, IL, PA, GA, others </li></ul>
  10. 10. What Is A Solicitation <ul><li>• Website accepting donations + induce donors to it </li></ul><ul><li>- email, US mail, phone, ads, meetings, etc. </li></ul><ul><li>- Active solicitation </li></ul><ul><li>- CA, TX (not email), MD, UT, WA, WI </li></ul>
  11. 11. What Is A Solicitation <ul><li>• Ask for charitable support by </li></ul><ul><li>- Email </li></ul><ul><li>- US Mail </li></ul><ul><li>- Meetings </li></ul><ul><li>- Events </li></ul><ul><li>- Advertisements </li></ul><ul><li>• These are a solicitation in nearly every state </li></ul>
  12. 12. Even If You Are Soliciting <ul><li>You might be exempt </li></ul><ul><li>Exemptions vary drastically across states </li></ul><ul><li>-- Mission, with qualifications </li></ul><ul><li>-- Gross revenue </li></ul><ul><li>-- Gross fundraising revenue </li></ul><ul><li>-- Revenue from within the state (kindest) </li></ul>
  13. 13. Where We Are <ul><li> What is Charity Registration </li></ul><ul><li> Why comply with the laws </li></ul><ul><li> Where do you register </li></ul><ul><li> What is a solicitation </li></ul><ul><li>• How do you register-Forms, Docs, Fees </li></ul><ul><li>• Plan for how to get going </li></ul><ul><li>• Continuing Ed. </li></ul>
  14. 14. How Do You Register-Forms <ul><li>• Vary drastically across the states </li></ul><ul><li>• Unified Registration Statement (URS) </li></ul><ul><li>• A few neat categories </li></ul><ul><li>- URS </li></ul><ul><li>- URS + state forms </li></ul><ul><li>- Non URS: state forms only </li></ul><ul><li>-- ” foreign corp doing business ” </li></ul>
  15. 15. How Do You Register-Docs <ul><li>• Typical documents </li></ul><ul><li>- By laws & articles of incorporation </li></ul><ul><li>- Tax exempt letter </li></ul><ul><li>- Board list </li></ul><ul><li>- Financial report </li></ul><ul><li>- IRS Form 990 </li></ul><ul><li>-- 990 question: which states require this form </li></ul>
  16. 16. How Do You Register-Fees <ul><li>A few neat categories </li></ul><ul><ul><li>- Flat </li></ul></ul><ul><ul><li>- Tiered by gross revenue or contributions </li></ul></ul><ul><ul><li>- Tiered by in-state revenue (kindest) </li></ul></ul><ul><li>• HI most expensive: $750 for largest </li></ul><ul><li>• 5 free: AZ, AR, KY, MI, NM </li></ul><ul><li>• 32  $100 </li></ul>
  17. 17. Where We Are <ul><li> What is Charity Registration </li></ul><ul><li> Why comply with the laws </li></ul><ul><li> Where do you register </li></ul><ul><li> What is a solicitation </li></ul><ul><li> How do you register </li></ul><ul><li>• Plan for how to get going </li></ul><ul><li>• Continuing Ed </li></ul>
  18. 18. Plan For How To Get Going-1 <ul><li>• Charity starts at home </li></ul><ul><li>-- enforcement also starts at home </li></ul><ul><li>--- FL, GA, AZ, WA </li></ul><ul><li>-- register there </li></ul>
  19. 19. Plan For How To Get Going-2 <ul><li>• Very high fundraising revenue states, if any </li></ul><ul><li>- dollar amount </li></ul><ul><li>- percentage of fundraising revenue </li></ul>
  20. 20. Plan For How To Get Going-3 Web Based Fundraising <ul><li>• Do you need every state? </li></ul><ul><li>-- if not, take safe harbor & restrict giving </li></ul><ul><li>• Where solicit most </li></ul><ul><li>-- descending state populations </li></ul><ul><li>--- census.gov </li></ul><ul><li>- work down the list </li></ul>
  21. 21. Plan For How To Get Going-3 Non Web Based Fundraising <ul><li>• Where solicit most </li></ul><ul><li>-- query database for constituent frequency by state </li></ul><ul><li>-- descending order of frequency </li></ul><ul><li>-- work down the list </li></ul>
  22. 22. Plan For How To Get Going-4 <ul><li>• Don ’ t be intimidated or overwhelmed </li></ul><ul><li>• Follow a plan </li></ul><ul><li>• One to three per month </li></ul><ul><li>• May be exempt in some </li></ul><ul><li>-- need to apply for exemption? </li></ul><ul><li>• You can do this </li></ul>
  23. 23. Continuing Education <ul><li>• http://www.nasconet.org </li></ul><ul><li>• URS, http://www.multistatefiling.org </li></ul><ul><li>• My blog, http://www.tonymartignetti.com </li></ul><ul><li>-- Tony Martignetti Nonprofit Radio </li></ul><ul><li>-- LinkedIn, Twitter, YouTube, Facebook </li></ul><ul><li>-- Email sign-up for weekly radio alerts </li></ul>
  24. 24. Continuing Education <ul><li>• My book: Charity Registration: State-by-State Guidelines for Compliance </li></ul><ul><li>--http://www.StateCharityRegistration.com </li></ul>

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