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Nonprofit regulation in Florida
 in Florida |
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Nonprofit regulation in Florida involves a complex set of rules that govern nonprofit organizations and charitable giving throughout the state. Major issues surrounding nonprofit regulation nationwide include the following:
- contribution limits,
- donor disclosure, and
- the redefinition of issue advocacy.
Florida is one of 39 states that require charitable organizations, and those intending to solicit on their behalf, to register with the state in order to solicit contributions, whether they are a Florida organization or based out-of-state. In Florida a number of groups and organizations are exempt from registration. Unlike most states, there is no exemption for organizations that raise a small amount of money.[1]
Florida is one of 3 states (along with California and New York) that require organizations to file copies of IRS Form 990 Schedule B attachments, which list names and addresses of contributors who gave over $5,000.[2]
Florida is one of only seven states requiring registration that does not accept the Unified Registration Statement (URS); organizations must use the state registration form.[3]
- Note: The following is not a how-to guide in managing an organization's registration and reporting requirements, but rather an attempt to share information about the relative degree of regulation governing nonprofit charitable activity at the individual state level. The information on this page was last updated in early 2015.
Background
According to the Foundation Center, there are over 1.5 million nonprofit organizations in the United States.[6] Section 501 of the U.S. tax code outlines which types of nonprofit organizations may be granted tax exempt status by the Internal Revenue Service. The section of this code that provides for exemption is section 501(a), which states that organizations are exempt from some federal income taxes if they fall under sections 501(c) or 501(d), or under section 401(a).[7]
Organizations classified as 501(c)(3) are nonprofit charitable, religious and educational organizations. These include organizations like the Red Cross and Habitat for Humanity as well as the American Civil Liberties Union and the Lucy Burns Institute, which provide, as defined in the federal code, “instruction of the public on subjects useful to the individual and beneficial to the community.”[8] Organizations granted 501(c)(4) status are political education organizations, and can engage in political lobbying. This includes donations to political committees that support or oppose ballot measures, bond issues, recalls or referenda. 501(c)(4) organizations can thus engage in issue advocacy, but they are not allowed to expressly advocate for the election or defeat of a particular candidate.
While the Internal Revenue Service designates eligible nonprofit charitable organizations with a federal tax exempt status, individual states require their own level of regulation and reporting, particularly when organizations attempt to solicit fundraising contributions. The amount of regulation required differs by state, as does the degree to which state regulations protect the privacy of individual donors. Three states, for instance, require annual copies of IRS Form 990 (schedule B), which lists individual contributors who contribute over a specified amount. Research shows that attempts to make contributions more transparent has an unintended negative effect on the number of contributors who give, as well as the amount.[5]
Governing agencies
The Florida Department of Agriculture & Consumer Services is the agency in the state that oversees rules governing donor solicitation and registration.
See law: Florida Statutes sections 406.401 through 496.426
Registration requirements
Any nonprofit group or organization located in Florida, unless exempt, must register with the Florida Department of Agriculture & Consumer Services. Any non-exempt nonprofit, in any state, intending to solicit in Florida must also register, along with anyone intending to solicit in Florida on behalf of a nonprofit. Non-exempt nonprofits might include traditional charitable organizations like the Red Cross or Habitat for Humanity, educational or policy organizations like the American Civil Liberties Union, or issue advocacy groups like the League of Conservation Voters.
Exemptions
A number of groups are exempt from registering in Florida. Unlike most states, there is no exemption for organizations that raise a small amount of money.
The following groups are exempt from registering:[1]
- Religious institutions
- Educational institutions, which includes accredited and nonprofit private schools, as well as entities like parent teacher associations, public museums, nonprofit libraries, and art galleries
- Membership organizations that solely solicit members for contributions
- Government entities
- Solicitations for a single person, as long as all money goes to that person
- Political groups (those raising funds in accordance with the election laws of Florida)
- Veterans' groups (any group granted federal charter under Title 36 of the United States Code)
Procedures
Nonprofits registering in Florida must use the Florida Charitable Organizations/Sponsors Registration Application form and may not use the Unified Registration Statement (URS) form.[1]
Documents
The following documents are required along with your registration form:[1]
- IRS determination letter
- Copies of all current solicitor contracts
- A financial report, which can either be an IRS Form 990 or, if not available, a budget
- Organizations may submit an audited report, but it is not necessary
Signature and fee
A notarized signature of either the treasurer or Chief Financial Officer is required.
The fee to register ranges from $10 to $400 and sits on a sliding scale that is contingent on an organization's contributions during the fiscal year; the more an organization takes in, the more it will pay to register.[1]
Filing procedures
Registration materials must be mailed to:[1]
Florida Department of Agriculture and Consumer Services
Solicitation of Contributions
P.O. Box 6700
Tallahassee, FL 32399
Renewal
Registration is valid for one year and expires a year after the date an organization completes its initial registration. The Florida Department of Agriculture and Consumer Services will mail a renewal statement 60 days before the renewal date. As of 2014, there is no longer any extension allowed.[9][10][1]
Financial reporting
Organizations must annually submit an IRS Form 990 as part of their financial reporting. Alternatively, they may submit a report including a balance sheet; statement of support, revenue and expenses; names and addresses of professional fundraisers used, if any; and a statement of general operating expenses.[1]
Extensions
Florida grants a 180-day extension to file annual financial reports.[10][1]
Fee
There is no fee to submit the financial report.[1]
Additional requirements
All groups in Florida must include a disclosure statement on every printed solicitation and receipt.[1]
Recent news
This section links to a Google news search for the term "Florida + donor + privacy"
See also
External links
Footnotes
- ↑ 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 Fishman, S. & Barrett, R. (2012). Nonprofit Fundraising Registration: The 50 State Guide. NOLO.
- ↑ Labyrinth, Inc, "IRS 990 Schedule B Required With Registration," August 28, 2013"
- ↑ "Multistate Filing Form," accessed December 17, 2014
- ↑ Guidestar, Fundraising: What Laws Apply?" accessed February 18, 2015
- ↑ 5.0 5.1 London School of Economics, "Campaign finance laws that make small donations public may lead to fewer people contributing and to smaller donations," January 7, 2015
- ↑ Foundation Center, "Frequently Asked Questions," accessed December 17, 2014
- ↑ Cornell University Law School, "26 U.S. Code § 501 - Exemption from tax on corporations, certain trusts, etc," accessed January 13, 2015
- ↑ Cornell University Law School, "26 CFR 1.501(c)(3)-1 - Organizations organized and operated for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or for the prevention of cruelty to children or animals," accessed January 13, 2014
- ↑ Laws for Change, "Florida Charitable Solicitation Laws," accessed January 22, 2014
- ↑ 10.0 10.1 Labyrinth, Inc, "Florida No Longer Grants Form Extensions," July 31, 2014
