Soliciting Charitable Dollars in Nevada? New Law Requires State Registration for Most Organizations.

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The State of Nevada now requires non-profit corporations that solicit charitable contributions to register and provide certain information to the Nevada Secretary of State. This information will be a matter of public record and will be posted on the Secretary of State’s website. The law became effective January 1, 2014, and generally puts Nevada on par with the majority of other states in the country. Not only does the new law help the state police those organizations holding themselves out as soliciting funds for public benefit, it also provides Nevadans and other interested parties with more information to help them when deciding where to allocate their charitable dollars.

The law applies to any non-profit corporation, whether organized in Nevada or another jurisdiction, which solicits charitable contributions by any means including mail, telephone, email or a face-to-face meeting, if the solicitation is made: (a) from a location within Nevada, or (b) from a location outside Nevada to persons located in Nevada. There is an exception if the solicitation is directed only to a total of fewer than 15 persons, or only to persons who are related to the officers, directors, trustees or executive personnel of the corporation.

Non-profit corporations subject to this new registration requirement must file a Charitable Solicitation Registration Statement with the Secretary of State. Additionally, the corporation must file this Statement annually with its annual list of officers and directors. The requirement to register and provide information applies to any non-profit corporation that is soliciting charitable contributions within Nevada or from Nevadans, as described above, whether or not such corporation is already registered with the Nevada Secretary of State.

The penalties for failure to file the Statement start at $25. If the Secretary of State notifies a non-compliant corporation of its failure to file and the non-compliant corporation does not file the Statement within 90 days, the Secretary of State is authorized by law to impose up to $1,000 in additional fines and to order the corporation to cease and desist any further solicitation activities, whether directly or indirectly through third parties.

Topics:  Charitable Donations, Charitable Organizations, Registration

Published In: Nonprofits Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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