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Nonprofit regulation in West Virginia
 in West Virginia |
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Nonprofit regulation in West Virginia 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.
West Virginia 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 West Virginia organization or based out-of-state. In West Virginia a number of groups and organizations are exempt from registration. Organizations that think their group may be exempt can send a letter to the Charitable Organizations Division for a ruling.[1]
West Virginia is one of 32 states that allows registrants to use either the Unified Registration Statement (URS) or the state registration form.[2] 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.[5] 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).[6]
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.”[7] 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.[4]
Governing agencies
The West Virginia Secretary of State's Charitable Organizations Division is the agency in the state that oversees rules governing donor solicitation and registration.
See law: West Virginia Code sections 29-19-1 through 29-19-16
Registration requirements
Any nonprofit group or organization located in West Virginia, unless exempt, must register with the West Virginia Secretary of State's Charitable Organizations Division. Any non-exempt nonprofit, in any state, intending to solicit in West Virginia must also register, along with anyone intending to solicit in West Virginia 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 large number of groups are exempt from registering in West Virginia. Organizations that think they may be exempt can ask the state agency governing nonprofits for a ruling.
The following groups are exempt from registering:[1]
- Organizations that received less than $25,000, which have no professional fundraisers (unlike most states, West Virginia includes grants when considering whether an organization has exceeded the annual limit)
- Religious groups (unless they are required to file an IRS Form 990, in which case they must register)
- Educational institutions
- Hospitals
- Membership organizations
- Appeals for named individuals
- Single fundraising events for benefit of a named charity
Procedures
Nonprofits registering in West Virginia can use either the Unified Registration Statement (URS) form or the state form. Organizations that choose to use the URS must also file a Unified Registration Statement Supplement.[1]
Documents
The following documents are required along with your registration form:[1]
- IRS determination letter, if an organization has one
- Most recent filed IRS Form 990, 990-EZ or 990-N
- Current contracts with fundraising professionals
- Organizations must provide a balance sheet and audited financial statement if they raised more than $200,000
- Organizations that received more than $100,000 but less than $200,000 must provide a financial review
Signature and fee
Two signatures of authorized officers, one of whom must be the Chief Financial Officer, are required. Signatures must be notarized.
The registration fee depends on contributions and is on a sliding scale ranging from $15 to $50.[1]
Filing procedures
Registration materials must be mailed to:[1]
Charities Division
Secretary of State Bldg. 1, Suite 157-K
1900 Kanawha Blvd. East
Charleston, WV 25305
Renewal
Registrations must be renewed every year. Renewal must occur by the anniversary of the initial registration date. A 90-day extension is allowed, but only once. Extensions must be requested in writing. The renewal fee is determined by the same sliding scale used during the registration process.[1]
Financial reporting
Annual financial reporting requirements are satisfied during the renewal process.[1]
Additional requirements
Organizations in West Virginia must include a disclosure statement on communications and solicitations.[1]
Recent news
This section links to a Google news search for the term "'West + Virginia + donor + privacy"
See also
External links
Footnotes
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Fishman, S. & Barrett, R. (2012). Nonprofit Fundraising Registration: The 50 State Guide. NOLO.
- ↑ "Multistate Filing Form," accessed December 17, 2014
- ↑ Guidestar, Fundraising: What Laws Apply?" accessed February 18, 2015
- ↑ 4.0 4.1 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
