Navigating the Complex Charitable Registration Process

1. Navigating the Complex Charitable Registration Process Deborah Desjardins – Development Director Natalie Bulger – Compliance Manager April 26, 2012 Emerging Philanthropy Conference

2. Agenda • Background of system • How to prepare • Organizing your application • Registered agents • Renewals • Helpful resources • Q&A

3. Background • Learning process • Complicated/difficult • Because majority of business is in PA, we were unsure what applied to us

4. Background • What we discovered was… • Some states generating income by setting up guidelines • Webpage with donate button – softly soliciting for donations • Webpages available to EVERYONE • If you do not file and the states decide to pursue fines – it can add up

5. Fundraisers • Many will require registration for own purposes • Professional solicitors also have to be registered in all required states and can face fines if they solicit for an organization that is not registered • Solicitation v. Fundraising v. Consulting

6. How to prepare • Begin with a list of questions that you will need to answer* • What type of organization are we? • What was our gross revenue for the past fiscal year? • What were our total charity contributions for the past fiscal year? • Did we utilize a professional solicitor? • What about a fundraising consultant? * See URS worksheet

7. How to prepare • These questions will guide decisions on whether your organization is exempt from registration or not, and to what extent • Identify those who will be responsible for signatures • CEO • CFO • Board of Directors • Treasurer • Secretary

8. How to prepare • Prepare and gather the following: • List of board of directors • Board bylaws • Tax exempt determination letter • 990 statement for the past fiscal year • Financial audit for the past fiscal year • List of those in organization responsible for: • Custody of funds • Fundraising, etc • List of any other offices/chapters/branches/affiliates • What state(s) you are already registered in • License(s) for operation • List of donations from foundations • Any promotional documents describing what your organization is and what it does • Fundraising contracts Use that check sheet!

9. States that don’t require registration As of January 2012 the following states do not require registration: Nevada South Dakota Texas Vermont Wyoming • Delaware • Idaho • Indiana • Iowa • Montana • Nebraska Just forget about it!!!

10. Organizing your application • Remember the answers to those questions about who you are, how much revenue collected from past fiscal year, etc? • Use this check sheet to identify in which states your organization is exempt • Categorize states requiring registration into two groups • Exempt • Not Exempt (do first)

11. Organizing your application - TIP Spreadsheets will be your best friend during this process

12. Organizing your applicationExempt States • Exempt states will vary in what they require • Some will require a full application • Others will only ask for a cover letter and proof of IRS tax exempt determination • When in doubt – CALL THE STATE • Exemption applications often have separate application documents • Utilize state websites and links provided on multistatefiling.org • Note difference in application costs as many states have a lower fee for exemption registration

13. Organizing your applicationNon-Exempt States • All applications for non-exempt states* will require the following: • URS item 4 – list of all other offices/chapters/branches/affiliates • URS item 7F – other states in which your organization is registered • URS item 7G – states in which donations were solicited • # of mailings that went to each state • URS item 13 – list of board of directors • URS item 15 – persons responsible for tasks including fundraising, disbursement of funds, etc • Purpose statement for the organization *Colorado, Florida, South Carolina and Oklahoma do not accept the URS and have separate state applications

14. Online Filing • New Mexico and Colorado require filing to be done online • Many other states offer some form of online filing • Initial applications • Supplements • Renewal information

15. Organizing your application • Print any supplemental materials required by individual states • Create hard copy files for each of the applications • except for the main URS application – cannot save* • Make a spreadsheet of required payments for registration • You will need your cheat sheet of questions for this as some payments depend on revenue or gross donations

16. Organizing your application • Multistatefiling.org provides a checklist of what each state requires HOWEVER • This can get confusing if your organization is exempt in some states but not others • The URS instructions also provide a breakdown of each state • This is what you will use to find exemption rules and specifics regarding if the state requires a 990, audit, board bylaws etc.

17. Organizing your application

19. Organizing your application - TIP • Don’t be afraid of the sticky note! • Use a sticky note on each state’s file to note what additional documentation it will require. • This is an on-going process that may take time and you will add to the file as you go

20. Registered agents • In most cases, a person or organization, located in the given state, that will be willing to act as the liaison for documentation should a state bring action against the filing organization • This may be difficult! Sometimes people are concerned about what their role really is

21. Registered agents • If you cannot ID a registered agent on your own… • Some states will allow you to use the office through which you are applying such as South Carolina – Secretary of State • Can also purchase a registered agent through multiple different services – be aware of the costs!!! • Look for multi-year deals and organizations that offer additional services that you may need

22. Registered Agents • Colorado • District of Columbia • Michigan • Mississippi • New Mexico • North Dakota • South Carolina • Utah

23. Renewals • Renewal dates will vary • Many are 4 ½-6 months after the end of the fiscal year • In order to renew, must have the most recent year IRS 990 • Some states will require only a combination of • FY990 • Audited financials • Financial report

24. Renewals • You may ask… • What if we do not have our FY 990 completed 6 months after the end of the fiscal year? • EXTENSIONS! • Many states will offer an extension on renewal but must apply in time to avoid a late fee

25. Helpful resources • Multistate Filer Project - http://www.multistatefiling.org/ • Individual state websites • Registered Agent websites • www.Incorp.com • www.registeredagent.com • www.nrai.com