For many nonprofits, this time of year brings anxiety from multi-state charity registration requirements. Whether you are looking at register for the first time or renewing, it can be overwhelming. SimpleCharityRegistration.com can help you manage this heavy load.
Simple Charity Registration is an affordable form automation software designed to reduce the amount of time and resources it takes your organization to fulfill your state charity compliance needs. How can SimpleCharityRegistration help you accomplish your mission?
4 Simple Steps:
- Identifying up front which states your organization will need to register in and in which states you may be exempt from registration requirements
- Collecting all information necessary to file up-to-date state specific forms (registration, renewal, exemption, or extension), with instructions and resources all in one place
- Sending email reminders of renewal and annual financial due dates, saving you from missed deadlines and penalties
- Storing your data from one year to the next, available to you at any time to add a new state or renew a previous one, keeping you compliant
4 Simple Steps to Compliance Video
Simple Charity Registration is designed to allow you to do your registration in parts as you have the information available, making now the perfect time to get started on your registrations and renewals while waiting for your financials to be complete.
Simple Charity Registration looks forward to helping you spend more of your valuable resources on your mission while staying compliant.
Join Us for a free, 30-minute webinar on Wednesday, April 5, at 3:00 pm ET.
Here are some other resources that will be helpful throughout the registration process: GuideStar’s blog on State Registration Requirements for Fundraising, our blogs on what to prepare for registration and how Simple Charity Registration can help.
Please take a minute to visit our website www.SimpleCharityRegistration.com and create a free account or contact us to learn more 800.780.6027 email@example.com.
Your Simple Charity Registration Support Team
The IRS has prepared something special for charities this tax season by updating and annotating the 990-EZ Short Form Return of Organization Exempt from Income Tax. The updated form now includes 29 help boxes to give additional information and IRS links on questions that often trip up exempt organizations.
What is the 990-EZ?
The 990-EZ is the shortened return for Tax Exempt Organizations with less than $200,000 in gross receipts and less than $500,000 in total assets at the end of the tax year. This applies to tax exemption under 501(a), 501(c)(3) other than private foundations, and other subsections of 501(c) except those regarding black lung.
How will the New 990-EZ Help with Charity Registration?
The 990-EZ is a simpler, less-detailed report which makes it the preferred return of charities eligible to use it. Unfortunately, many state charitable solicitation registration forms require lots of additional financial information for those who don’t use the 990. The new help icons in addition to the 990-EZ Instructions provide information necessary to dissect how to correspond the 990-EZ data with the additional state questions.
Notes on Using the New 990-EZ
First, don’t be discouraged if you link to the form and can’t get the new information to pop up. The help icons won’t function unless you are accessing the form via a pdf software. Second, in their press release about the new form, the IRS reminded filers that it is still necessary to use the 990-EZ Instructions even with the help icons.
Find out More:
IRS 990-EZ Press Release
IRS Webinar on Reporting on Compensation on the 990 or 990-EZ
Are you trying to make sure your organization is in compliance with state charitable solicitation registration, but you do not know whether you are registered to solicit in certain states? You are not alone. If you have changed or reorganized staff, you may not know where you stand. Thankfully, most states have a charity search function that will allow you to find out easily.
Below is the most up-to-date list of charity search, sometimes called Check a Charity. You’ll see that a few of the states don’t have a search available and a couple will turn out to be pdfs that the states regularly update.
Overall, the states are making it easy to find out whether you are in compliance, and using Simple Charity Registration will make it easy and affordable to attain or remain in compliance.
When I first started doing state charitable solicitation registration for the organization my husband and I ran, I got to Massachusetts and found lots of questions about “related parties” and “related organizations.” Being a small organization at the time, this was a completely new concept to me. If I had started registering later in our history as we developed offshoots and more complicated relationships it would have been clear. Simply put, a related party or organization is one that shares revenue or governance with your organization or that could end up with some conflict of interest.
More specifically, a “related party” is defined in Code Sec. 267 as including family members, a taxpayer and a corporation controlled directly or indirectly (through attribution from other family member stock holdings) by the taxpayer (more than 50% of the value of the stock), and a partner and a controlled (directly or indirectly) partnership. Sec. 267 also specifies other related parties, including a trust and its grantor, a trust and its beneficiary, and a personal services company and any shareholder-employee.
Related organizations are organizations that stand in a parent/subsidiary relationship, brother/sister relationship, sponsoring organization of or contributing employer to a VEBA (Voluntary Employees’ Benefit Association), or supporting/supported organization relationship.
Here are a couple of IRS links that might help understand the terms:
Exempt Organizations Annual Reporting Requirements: Related Organizations and Unrelated Partnerships (Form 990, Schedule R)
Exempt Organizations Annual Reporting Requirements – Form 990, Schedule R: Meaning of Related Organization
By asking about these relationships, Massachusetts and a couple other states are looking to see any ways in which your organization could be mishandling donations indirectly by funneling funds to other parties. For those following the rules, it is a lot of extra work, but to these states it is increased transparency for their constituents.
Thankfully, Simple Charity Registration will store that data for you and fill it in all the charitable solicitation registration documents where it’s needed every year.