Your feedback ensures we stay focused on the facts that matter to you most—take our survey.
Nonprofit regulation in New Jersey
 in New Jersey |
This article does not contain the most recently published data on this subject. If you would like to help our coverage grow, consider donating to Ballotpedia.
| Civil Liberties Policy |
|---|
|
| Nonprofit regulation |
| Privacy Policy Project |
| State information |
 |
Nonprofit regulation in New Jersey 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.
New Jersey 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 New Jersey organization or based out-of-state. In New Jersey a number of groups and organizations are exempt from registration.
New Jersey is one of 32 states that allows registrants to use either the Unified Registration Statement (URS) or the state registration form.[1] Only seven states requiring registration do not accept the URS.
- 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.[4] 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).[5]
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.”[6] 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.[3]
Governing agencies
The New Jersey Department of Law & Public Safety, Division of Consumer Affairs is the agency in the state that oversees rules governing donor solicitation and registration.
See law: New Jersey Statutes Annotated, sections 45:17A-18 through 45:17A-40
Registration requirements
[[File:Seal of the Attorney General of New Jersey.svg|thumb|Seal of the Attorney General of New Jersey|link=Attorney General of New Jersey] Any nonprofit group or organization located in New Jersey, unless exempt, must register with the New Jersey Department of Law & Public Safety, Division of Consumer Affairs. Any non-exempt nonprofit, in any state, intending to solicit in New Jersey must also register, along with anyone intending to solicit in New Jersey 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 New Jersey. The following groups are exempt from registering:
- Religious organizations, and any affiliated charitable efforts, like a religious school
- Educational institutions (and libraries registered by the New Jersey Department of Education)
- Any organization that receives less than $10,000 and has no paid staff (member fees do not count towards this number)
- Local groups that have parent groups that are registered (solicitations must be made by group members or volunteers, and they must not receive more than $25,000, though this does not apply to law enforcement groups)
Procedures
Nonprofits registering in New Jersey can use either the Unified Registration Statement (URS) form or the state form (either the CRI-200 Short Form or the CRI-150I Long Form).[7][8]
For organizations choosing the state form, they should use the CRI-200 Short Form if they did not receive more than $25,000 and only use volunteer fundraisers. They should use CRI-150I Long Form if they received more than $25,000 or if they used a paid fundraiser.[8]
Documents
The following documents are required along with your registration form:
- Articles of incorporation
- Bylaws
- IRS determination letter, or IRS Form 1023
- IRS Form 990, if available
- Audited financial statement if the organization received more than $250,000 in revenue
Signature and fee
Two signatures of authorized officers are required, one of whom must be the Chief Financial Officer. Notarization is not required.
The registration fee is a sliding scale based on annual receipts, ranging from $30 to $250.
Filing procedures
Registration materials must be mailed to:
New Jersey Division of Consumer Affairs
Charities Registration & Investigation Section
P.O. Box 45021
Newark, NJ 07101
Renewal
Organizations must renew their registration each year. Renewal must occur within six months after end of an organization's fiscal year. Organizations can request an extension of up to six months by submitting Extension Form CRI-400 or by mailing the N.J. Charities Registration section of the Attorney General's office. Using the URS is acceptable as a means of renewing, as are the two other state forms, assuming the group meets the specific state requirements. The fee for renewal is based on the same sliding scale used for initial registration.
Financial reporting
There are no additional annual financial reporting requirements beyond the renewal requirements described above.[7]
Additional requirements
All New Jersey nonprofits must include a disclosure statement in all solicitation materials.[7]
Recent news
This section links to a Google news search for the term "New + Jersey + donor + privacy"
See also
External links
Footnotes
- ↑ "Multistate Filing Form," accessed December 17, 2014
- ↑ Guidestar, Fundraising: What Laws Apply?" accessed February 18, 2015
- ↑ 3.0 3.1 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
- ↑ 7.0 7.1 7.2 Fishman, S. & Barrett, R. (2012). Nonprofit Fundraising Registration: The 50 State Guide. NOLO.
- ↑ 8.0 8.1 Division of Consumer Affairs, "New Jersey Charitable Registration Forms & Information," accessed February 2, 2015
