Nonprofit regulation in New Hampshire
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Nonprofit regulation in New Hampshire involves a complex set of rules that govern nonprofit organizations and charitable giving throughout the state. Major issues surrounding nonprofit regulation nationwide include the following:
- contribution limits,
- donor disclosure, and
- the redefinition of issue advocacy.
New Hampshire is one of 39 states that require charitable organizations, and those intending to solicit on their behalf, to register with the state in order to solicit contributions, whether they are a New Hampshire organization or based out-of-state. In New Hampshire a small number of groups and organizations are exempt from registration. Only certain religious organizations and some nonprofits whose purposes are not primarily charitable are exempt. These groups must apply for exemption; it is not automatic.[1]
New Hampshire is one of 32 states that allows registrants to use either the Unified Registration Statement (URS) or the state registration form.[2] Only seven states requiring registration do not accept the URS.
- Note: The following is not a how-to guide in managing an organization's registration and reporting requirements, but rather an attempt to share information about the relative degree of regulation governing nonprofit charitable activity at the individual state level. The information on this page was last updated in early 2015.
Background
IRS building in Washington, D.C.
According to the Foundation Center, there are over 1.5 million nonprofit organizations in the United States.[5] Section 501 of the U.S. tax code outlines which types of nonprofit organizations may be granted tax exempt status by the Internal Revenue Service. The section of this code that provides for exemption is section 501(a), which states that organizations are exempt from some federal income taxes if they fall under sections 501(c) or 501(d), or under section 401(a).[6]
Organizations classified as 501(c)(3) are nonprofit charitable, religious and educational organizations. These include organizations like the Red Cross and Habitat for Humanity as well as the American Civil Liberties Union and the Lucy Burns Institute, which provide, as defined in the federal code, “instruction of the public on subjects useful to the individual and beneficial to the community.”[7] Organizations granted 501(c)(4) status are political education organizations, and can engage in political lobbying. This includes donations to political committees that support or oppose ballot measures, bond issues, recalls or referenda. 501(c)(4) organizations can thus engage in issue advocacy, but they are not allowed to expressly advocate for the election or defeat of a particular candidate.
While the Internal Revenue Service designates eligible nonprofit charitable organizations with a federal tax exempt status, individual states require their own level of regulation and reporting, particularly when organizations attempt to solicit fundraising contributions. The amount of regulation required differs by state, as does the degree to which state regulations protect the privacy of individual donors. Three states, for instance, require annual copies of IRS Form 990 (schedule B), which lists individual contributors who contribute over a specified amount. Research shows that attempts to make contributions more transparent has an unintended negative effect on the number of contributors who give, as well as the amount.[4]
Governing agencies
The New Hampshire Department of Justice, Charitable Trust Division is the agency in the state that oversees rules governing donor solicitation and registration.
See law: New Hampshire Revised Statutes, Title 1, sections 7:19 through 7:32b
Registration requirements
Seal of the State of New Hampshire
Any nonprofit group or organization located in New Hampshire, unless exempt, must register with the New Hampshire Department of Justice, Charitable Trust Division. Any non-exempt nonprofit, in any state, intending to solicit in New Hampshire must also register, along with anyone intending to solicit in New Hampshire on behalf of a nonprofit. Non-exempt nonprofits might include traditional charitable organizations like the Red Cross or Habitat for Humanity, educational or policy organizations like the American Civil Liberties Union, or issue advocacy groups like the League of Conservation Voters.
Exemptions
A small number of groups are exempt from registering in New Hampshire. Only certain religious organizations are exempt as well as some nonprofits whose work is not primarily charitable and that don't solicit funds publicly. It is worth noting that religious organizations that file an IRS Form 990 are not exempt and must register. Groups that are, or believe they are, exempt must file a Request for Pre-Registration Review.[1]
Procedures
Nonprofits registering in New Hampshire can use either the Unified Registration Statement (URS) form or the state form.[1]
Documents
The following documents are required along with your registration form:[1]
- Articles of incorporation
- Bylaws
- IRS determination letter or IRS Form 1023
- List of officers, directors, trustees, as well as their contact information
- Bank statement or IRS Form 990
- Current conflict-of-interest policy (if an organization doesn't have one, the board must adopt one)
- Provision for the dissolution of the organization, which should be included in the articles of incorporation or bylaws (if the organization is located in a state that does not require this, then they must send an IRS Form 1023)
Signature and fee
Signatures are required by both the president and treasurer of any organization. They do not need to be notarized.
There is a $25 registration fee.[1]
Filing procedures
Registration materials must be mailed to:[1]
Office of the New Hampshire Attorney General
Charitable Trust Unit
33 Capitol Street
Concord, NH 03301
Renewal
There is no renewal required; an annual financial report, however, is required and discussed below.[1]
Financial reporting
Organization may choose one of the following ways to file their annual financial report:
1) File the Unified Registration Statement (URS) form
2) File the state annual report form, Form NHCT-12
3) File a copy of their most recent IRS Form 990
If an organization had revenue of $500,000 to $1 million, it must provide the latest financial statements prepared in accordance with generally accepted accounting principles. These statements do not need to be audited. If it had more than $1 million, then it must provide an audited statement.
The annual financial report is due four months and 15 days from close of a group's fiscal year. New registrants are not required to file an annual report on Form NHCT-12 until they have been registered for one full year.[1]
Extensions
Extensions are available for up to six months by filing Form NHCT-4, the Application for Extension of Time to File Annual Report.[1]
Fee
There is a $75 fee to submit the financial report.[1]
Recent news
This section links to a Google news search for the term "New + Hampshire + donor + privacy"
See also
External links
Footnotes
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 Fishman, S. & Barrett, R. (2012). Nonprofit Fundraising Registration: The 50 State Guide. NOLO.
- ↑ "Multistate Filing Form," accessed December 17, 2014
- ↑ Guidestar, Fundraising: What Laws Apply?" accessed February 18, 2015
- ↑ 4.0 4.1 London School of Economics, "Campaign finance laws that make small donations public may lead to fewer people contributing and to smaller donations," January 7, 2015
- ↑ Foundation Center, "Frequently Asked Questions," accessed December 17, 2014
- ↑ Cornell University Law School, "26 U.S. Code § 501 - Exemption from tax on corporations, certain trusts, etc," accessed January 13, 2015
- ↑ Cornell University Law School, "26 CFR 1.501(c)(3)-1 - Organizations organized and operated for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or for the prevention of cruelty to children or animals," accessed January 13, 2014
