What are State Compliance Rules for Exempt Organizations

The process for registering a charity in the United States varies by state. Some states have more complicated processes for registration than others, while some states have no registration systems in place at all. A few notable states include:

California

Agency: Registry of Charitable Trusts

Statute Citations: CAL. GOV’T CODE §12580, et seq., California Code of Regulations, Title 11, division 1, chapter 4, sections 300-316  and chapter 15, sections 999.6-999.9.5.

Initial Registration Requirements: 

• • Initial registration for domestic and foreign organizations doing business or raising charitable funds in state.
  • Foreign charitable organizations must obtain certificate of authority and franchise tax exemption. 
  • Over 200 cities/ counties have solicitation ordinances that may require registration.
  • $50 initial registration fee

Annual Registration/ Reporting/ Renewal Requirements:

• • Form RFF-1, CT-TR-1 Form for organization with less than
    $50,000 in revenue and copies of any IRS 990, 990ez or
    990PF due annually 4.5 months after end of fiscal year ($25-1200 fee based on gross revenue scale).
  • Audited financial statements required if gross revenue equals $2,000,000 or more.
  • Fundraisers also have reporting requirements.

Accept URS: Yes

E-Filing: Optional

Delaware

Agency: Attorney General

Statutes: None

Initial Registration Requirements: None

Annual Registration/ Reporting/ Renewal Requirements:

Accept URS: no

E-Filing: n/a 

New York

Agency: Attorney General Charities Bereau

Statute Citations: N.Y. C.L.S. Exec §171-a, et seq.- organizations that solicit contributions in New York. N.Y.C.L.S. EPTL § 8-1.4 organizations that conduct charitable activities/have charitable assets in NY.
**NOTE – only one registation is required

Initial Registration Requirements:

• • A charity that receives solicited contributions in excess of $25,000 must register, unless it engages a Professional Fundraiser or Fundraising Counsel, in which case it must register regardless of the amount of contributions received.
  • Initial registration required to be completed online
  • One-time registration fee of $25 for organizations registering to solicit contributions in New York

Annual Registration/ Reporting/ Renewal Requirements: 

• • An annual financial report, consisting of New York Form CHAR500, IRS Form 990 and, if applicable, a CPA’s report due 4.5 months after fiscal year end (six month automatic extension given).
  • For organizations registering to solicit in New York with annual receipts over $750,000 ($1,000,000) for fiscal years beginning on or afte July 1, 2021), report must include an audit report signed by an independent CPA;
  • For annual receipts between $250,000 and $750,000 ($1,000,000 for fiscal years beginning on or after July 1, 2021), report must include a review report signed by an independent CPA.
  • Annual filing fees are $25 for soliciting organizations and, depending on the amount of net assets at the end of the year, range from $25 to $1500.
  • An organization required to register pursuant to both statutes must pay both fees.

Accept URS: no

E-Filing: required

Wyoming

Agency: Secretary of State OR Office of the Attorney General

Initial Registration Requirements: None

Annual Registration/ Reporting/ Renewal Requirements: None

Accept URS: no

E-Filing: n/a

From these examples, it is clear that registration compliance varies greatly state by state. If you have further questions about registration requirements in other states, contact us here!

The information outlined is the article was gather from the National Association of State Charity Officials