What is the charitable solicitation registration statement?
Pursuant to NRS Chapter 82.382 – 82.417, every non-profit corporation that solicits tax-deductible charitable contributions is required to register with the Secretary of State before soliciting contributions.
How do I add the charitable solicitation registration statement to my entity?
The charitable solicitation registration statement (CSRS) may be added to the corporation by checking the box on its Initial/Annual List of Officers form, when filing online or in paper form, and by providing all information on the CSRS.
Charitable business solicitation registration exemption criteria:
• Requests for contributions, donations, gifts, or the like, which are directed only to a total of fewer than 15 persons, annually. • Requests for contributions, donations, gifts, or the like, are 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. • Corporation is recognized as a church under the Internal Revenue Code, section 501(c)(3).
How do I file the charitable solicitation registration statement or exemption for my entity if its Initial/Annual List is not due?
When a non-profit corp. or charitable org. such as a public broadcaster conducts on-air solicitations to fund its operations and programming, are disclosures required before every on-air solicitation?
No, disclosures are not required before every on-air solicitation so long as the disclosure is prominently displayed/disclosed before the donor commits to make a contribution or takes an action to fulfill a contribution pledge. The method of disclosure will depend on how the contribution will be made. See regulation R068-13, Section 4, Subsections 2-4 inclusive).
Examples: Website If a donor is directed to a website where he or she will be able to make a contribution, the disclosure must appear prominently on the web page where the donor will complete the contribution payment.
Call Center/Phone Bank If no previous disclosure has been made and a donor is making a contribution by phone, the person who receives the call must provide the disclosure verbally before collecting payment information.
Written Materials including pledge cards If no previous disclosure has been made and the donor is sent a pledge card or written communication asking him or her to fulfill a pledge, the disclosure must be on the pledge card.
If a nonprofit corporation or charitable organization hosts a telethon or radio-thon, must the on-air local host read the required disclosures before every program or JUST before every program?
If the disclosure is not run periodically throughout the broadcast or if the disclosure will not occur at the time a donor commits to a contribution or takes an action to fulfill a contribution pledge, the on-air local host must make the required disclosures. There are several methods that could be utilized. Any or a combination of the following would satisfy the disclosure requirement.
At the start of the telethon, the on-air host could include the disclosure.
Example: The opening script for the announcer could include the following sample language:
• The (name of organization) is a 501 c (3) Nevada non-profit corporation. Contributions made to this organization may be tax deductible.
• The (name of organization) is a 501 c (3) Nevada non-profit corporation supporting Nevada families. Contributions may be tax deductible to the extent allowable by law.
• Thank you for supporting (name of organization) a Nevada non-profit. (Name of organization) is a 501 c (3) organizations and contributions may be tax deductible.
When we run a nationally produced pledge program, must we run a disclosure slide before the program, or edit the program to add the slide before every break?
If a solicitation is made during a nationally produced pledge program, where the fulfillment point of donation may not be under the control of the organization, it may be appropriate to run a periodic announcement making the required disclosures.
For a television broadcast, is the on-air host subject to the solicitation disclosure rules if printed text providing the disclosure appears on the screen?
No, if the disclosures are prominently disclosed/displayed at the point a donor commits to make a contribution or if the disclosure is made by printed text on the screen or a separate recorded announcement, the disclosure would not have to be made by an on-air host.
We run public service messages for other nonprofits in support of their fundraising efforts. Must we require them to add the disclosures to all spots public and commercial broadcasters provide?
No, the broadcaster is not responsible for ensuring that the disclosure is provided. If the organization is using the public service message to solicit contributions, it is the charitable organization’s or non-profit corporation’s responsibility to make sure that the message contains the appropriate disclosure. The broadcaster may wish to inform the charitable organization or non-profit corporation of the state’s disclosure requirement.
Are disclosures required when as part of national programming an item is sold for which the public broadcaster receives a small royalty or waiver of programming fees?
No, disclosures by the public broadcaster would not be required in this specific circumstance.
Must for-profit entities abide by AB 60 disclosure requirements when marketing and fundraising for a charity?
No, but any materials provided by the nonprofit must contain the disclosure. It is the requirement of the nonprofit corporation to comply with the registration and disclosure requirements.
What does "charitable contrbution" mean?
“Charitable contribution” means a contribution that is recognized as a tax deductible contribution pursuant to the provisions of section 170(c) of the Internal Revenue Code of 1986, 26 U.S.C. § 170(c), future amendments to that section and the corresponding provisions of future Internal Revenue laws.
What does “solicit charitable contributions” mean?
“Solicit charitable contributions” means to request a contribution, donation, gift or the like that is made by any means, including, without limitation: a. Mail; b. Commercial carrier; c. Telephone, facsimile, electronic mail or other electronic device; or d. A face-to-face meeting.
The term includes requests for contributions, donations, gifts or the like which are made from a location within this State and solicitations which are made from a location outside of this State to persons located in this State, but does not include a request for contributions, donations, gifts or the like which is directed only to a total of fewer than 15 persons or only to persons who are related within the third degree of consanguinity or affinity to the officers, directors, trustees or executive personnel of the corporation.
How do I become a 501(c)(3) Charitable Organization?
The 501(c)(3) charitable designation is granted by the Internal Revenue Service. The Secretary of State does not grant 501(c)(3) charitable status. Information relating to becoming a 501(c)(3) charitable organization may be found at www.irs.gov.
When is a Charitable Solicitation Registration Statement (CSRS) required to be filed?
Beginning January 1, 2014, the CSRS is due at the time a corporation files its initial and annual lists of officers. A nonprofit corporation will indicate if it will or intends to solicit charitable contributions by checking the associated box on its initial or annual list of officers. If checked yes, the corporation must complete and file the CSRS.
Is there an additional fee for the CSRS?
No, there is no additional fee over and above the normal fee for filing the list of officers.
What information is required on the CSRS form?
The name of the nonprofit corporation as filed with the Secretary of State, The name as filed with the Internal Revenue Service, if different, The names by which the nonprofit corporation intends to solicit charitable contributions, Addresses of the principal place of business and any offices in Nevada, Tax exempt status and IRS Employer Identification Number (EIN), The names and addresses of executive personnel, The month and day of its fiscal year end, Financial information from IRS Form 990, or if no 990, a good faith estimate, The signature of an officer of the nonprofit corporation.
**The nonprofit corporation may also include its web address and USA PATRIOT ACT certification; both of which are optional.
What is a Form 990?
“Form 990” means the Return of Organization Exempt from Income Tax (Form 990) of the Internal Revenue Service of the United States Department of the Treasury, or any equivalent or successor form of the Internal Revenue Service of the United States Department of the Treasury.
Is the information contained in the CSRS public information?
Yes. The information will be available to the public on the Secretary of State’s Free Business Entity Search and through Bulk Data Download services.
Will the names and addresses of the executive personnel be public information?
Yes, by law all information contained in the CSRS shall be made public and available on the Secretary of State’s website. However, law does not require home addresses for officers, directors or executive personnel; business addresses may be listed.
What happens if a nonprofit corporation does not submit the CSRS with the list of officers when the box is checked "Yes"?
The list filing will be rejected as incomplete and will need to be resubmitted in corrected form with the completed CSRS as necessary. Additional fees and penalties may apply if the completed forms are not resubmitted by the initial or annual list due date.
NOTE - Nonprofit corporations that willfully fail or neglect to file the CSRS when required may also be subject to revocation of their right to do business in Nevada and to a civil penalty of $1,000, and may be enjoined from soliciting charitable contributions.
Can I file my list of officers and the CSRS online?
Yes, if an entity meets the any one or more of the following criteria: a. The nonprofit corporation solicits to fewer than 15 persons annually, b. The nonprofit corporation solicits only to persons related within a 3rd degree of consanguinity, c. The nonprofit corporation is recognized as a church pursuant to section 501(c) 3 of the Internal Revenue Code.
Is there a filing required to claim exemption from the CSRS?
Yes, a nonprofit corporation may claim exemption by completing and signing under penalty of perjury the Exemption from Charitable Solicitation Registration Statement form.
Do I need to make any disclosures when soliciting any type of donation or contribution, charitable or otherwise?
A person representing, verbally or in written or electronic communication, that he or she is conducting a solicitation for or on behalf of a charitable organization or nonprofit corporation shall disclose: The full legal name of the organization as registered with the Secretary of State The State or jurisdiction where the organization is formed The purpose of the charitable organization or nonprofit corporation The contribution or donation may be tax deductible or that the deduction does not qualify as tax deductible.
A person shall not make any misleading or deceptive claims or omissions pursuant to the deceptive trade provisions of NRS 598.1305.
The Attorney General has jurisdiction to investigate violations of these disclosure provisions.
Those whose solicitations are directed to fewer than 15 persons annually or only to persons related within a 3rd degree of consanguinity, or those that are recognized as a church pursuant to section 501(c) 3 of the Internal Revenue Code are exempt from the disclosure provisions.
Does wording of disclosure have to be used in situations where the donation is unsolicited? Or, will a disclosure in the acknowledgement and receipt suffice?
Disclosure is required in a solicitation or direct ask. An unsolicited donation doesn’t meet the definition of solicitation. This is specified in the regulation. There is no legal requirement specified in the NRS that a disclosure appear on the receipt or acknowledgement of an unsolicited donation/contribution, but providing one is considered a best practice and recommended.
If our non-profit is registered in another state, can we solicit in Nevada without being registered here?
No, under current law if you are soliciting for contribution/donations to people/businesses etc. in Nevada, the nonprofit corporation must be registered (qualified to do business in Nevada) as a foreign nonprofit corporation.
We are a NV-registered affiliate of a national organization. Must solicitations to NV donors made on our behalf by our national office (located out of state) comply with AB 60 disclosure requirements?
Yes, any solicitation made to Nevada donors will be required to provide the disclosure.
Third-party processors that represent our organization in fundraising campaigns use their own forms with language with which we cannot control. Is our Nevada nonprofit noncompliant?
Third-party processors will have to add language to any form or method used to solicit donors in Nevada that states whether or not the contribution may be or is not tax-deductible.
What about girls who sell Girl Scout cookies to raise funds? We assume that this would not apply as it is not a charitable donation. Is our assumption correct?
No, your assumption is not correct. The organization, if it is a 501(c) 3 organization, is required to be registered with the SoS as it should be under current law and it may be required to provide the additional Charitable Solicitation Registration Statement information. Any solicitation would require the disclosure statement except for in the sale of a product, good or service may help the organization; this is the purchase of tangible item to be consumed or utilized.
My organization hosts an event where the ticket price covers the meal and entertainment costs, and the remainder is diverted to our general revenue. Is solicitation disclosure required?
Yes, you would need to state that some portion of the ticket price may be or is not tax deductible.
Does the CSRS require a signature under penalty of perjury?
The person signing the CSRS is signing under penalty of perjury as stated on the form.
Which name must the charitable organization provide?
A charitable organization must provide the full legal name of the entity as filed with the Secretary of State and the name as registered with the Internal Revenue Service, if different.
We assume that membership solicitations are not charitable solicitations; hence, AB 60 disclosures do not apply. Is that correct?
Correct as long as it is only the membership that is being offered; if the form contains a check off for additional funds to support organization then the disclosure requirement in AB 60 does apply.
We assume that unsolicited grant proposals have to comply with AB 60. Is that correct?
It is unclear whether an unsolicited grant proposal would require disclosure. It would depend on the nature of the grant and proposal. In this circumstance, you may wish to consult private legal counsel.
We assume that garage sales fundraisers have to comply with AB 60. Is that correct?
Yes, need more info. If a nonprofit corporation is hosting the garage sale and collecting or soliciting donated items to sell and for which the donor can take a tax deduction then a disclosure is required. A buyer’s purchase is likely not tax deductible as they are receiving an item of value, unless the seller is asking for and accepts an amount that is significantly higher than the value of the item. In other words the exchange of funds is for the purchase of an item or service. They are not actually making a donation or contribution. If additional solicitations are made at the garage sale whereby there is no exchange of a good or service, then disclosure would be required, i.e. such as a jar that collects money or a flyer containing information and how to donate.
If the full name of the nonprofit is clear and conspicuous and clearly readable in the logo, can that be used in conjunction with the other required wording?
Yes, as long as it is clear that the solicitation is for the nonprofit specified in the logo and the logo contains the name of the nonprofit; more information or visual clarity is recommended for the donor to make determination.
Many online donor platforms cannot distinguish NV-based donors until transactions are complete. Will disclosure of acknowledgements and receipts suffice, rather than “before making a commitment"?
No. These companies operate in other states 40 states and the District of Columbia have requirements related to solicitations and registration so we are researching how other states handle the requirements.
Will a tagline or slogan suffice for the purpose?
AB 60 makes no change to the statement of purpose on the filing forms. If a nonprofit chooses to use that as its statement of purpose, it is presumed to meet the legal requirement of statement of purpose. The purpose stated in its articles of incorporation is considered its purpose for the CSRS.
Will a mission statement suffice for the purpose?
The statement of purpose is in current law and the law does not specify what constitutes a statement of purpose. Therefore, yes, you can choose to use a mission statement as the purpose. See preceding answer.
Do coin canisters and clothing donation boxes have to include AB 60 wording on them to be in compliance?
We assume that kids asking for donations at a charity event have to comply with AB 60. Is that correct?
In this instance, there are several ways to achieve compliance with the disclosure requirement: 1. Have the Master of Ceremonies or designated spokesperson make an announcement about the solicitation and make the disclosure statement. 2. Provide the disclosure statement on the tickets, in the program or on any materials printed for that event such as a pledge or donation card.
If this disclosure is not made in the same or similar manner as in 1 and 2 above, those asking for the charitable contributions will be required to make the disclosure.