Nevada has amended its corporate statute requiring charitable solicitation registration by charitable nonprofits soliciting donations in the state. Depending on your organization’s activities, incorporation or corporate qualification may by required, however if your activities are limited to solicitation and you are not “conducting business” in the state, only an annual charitable registration is required. Renewals are required on an annual basis and are due on the anniversary of the original registration date unless your organization is exempt.
Previously, out of state nonprofits were required to submit applications to do business in Nevada if they solicited tax deductible donations from state residents. Under Nevada’s amended law, foreign nonprofits are no longer required to qualify to do business for soliciting contributions from the state if that is their only contact with the state. For organizations that were required to register to conduct business under to prior statute and are NOT conducting business, you may consider withdrawing your corporate registration to relieve your nonprofit of unnecessary expense.
A charitable organization is only considered to be conducting business in the state of Nevada if it has an office in Nevada or if its employees or agents regularly conduct business in Nevada (ie: delivering program services within the state). An organization is NOT considered to be conducting business when it only conducts fundraising from an out-of-state location by such means as mail, email, telephone, television or other media. Additionally, any one-off fundraising event held within the state or meetings concerning organizational affairs within the state are not considered as conducting business in the state.
There are some exemptions extended for qualifying organizations which include:
- Requests for contributions, donations or gifts which are directed only to a total of fewer than 15 persons annually;
- Requests for contributions, donations, or gifts directed only to persons who are related within the third degree of consanguinity of affinity to the officers, directors, trustees or executive personnel of the corporation;
- Organizations recognized as a church under the Internal Revenue Code 501(c)3;
- Appeals for funds to benefit a particular person or his/her immediate family named in the solicitation, but only if all the proceeds of the solicitation are given to or expended for the direct benefit of the person or his/her immediate family; or
- Alumni associations of an accredited educational institution which solicits only persons who have an established affiliation with the institution.
Any organization that qualifies for exemption is required to file an Exemption from Charitable Solicitation Registration Statement with the Secretary of State.
For more information on this new requirement or on how to register contact us today, we will walk you through every step to make sure you are in compliance right from the start!