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Nonprofit regulation in Georgia
 in Georgia |
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Nonprofit regulation in Georgia 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.
Georgia 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 Georgia organization or based out-of-state. In Georgia a number of groups and organizations are exempt from registration.[1]
Georgia 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 Georgia Secretary of State oversees rules governing donor solicitation and registration in Georgia.
See law: Georgia State Code sections 43-17-1 through 43-17-23
Registration requirements
Any nonprofit group or organization located in Georgia, unless exempt, must register with the Georgia Secretary of State. Any non-exempt nonprofit, in any state, intending to solicit in Georgia must also register, along with anyone intending to solicit in Georgia 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 Georgia, including the following:[1]
- Any group not intending to raise over $25,000, if they have only unpaid fundraising volunteers (membership dues, government grants and contracts, and grants from 501(c)(3) groups do not count towards the $25,000 threshold)
- Religious institutions
- Educational institutions
- Professional associations that do not solicit members or funds from the general public
- Fraternal organizations that solicit only from members
- Fundraising for a specific individual, if all the money is given to the individual; however, if contributions exceed $5,000, written accounting might be required
- Volunteer firefighting organizations, if they raised less than $25,000 in the year
- Any local and tax-exempt association of hunters, fishermen, etc.
- Political groups that file with federal or state election commissions
- Any local Georgia affiliate of a registered or exempt parent organization
- Federal and state agencies
- Any person with bona fide publishing experience that provides a percentage of funds to a charitable group
Procedures
Nonprofits registering in Georgia can use either the Unified Registration Statement (URS) form or the state form. Any nonprofit using the URS, however, must additionally complete the "Control Persons" form, which is the last page of the state form.[1]
Documents
The following documents are required along with your registration form:[1]
- IRS determination letter (if your organization does not have one, it must send it within 30 days of eventually receiving it)
- IRS Form 990 for the previous two years
- A financial statement to be submitted within one year of registration; the nature of the statement depends on the contribution amount the organization received over the previous two years
Signature and fee
A notarized signature of an executive officer is required.
The registration fee is $35.[1]
Filing procedures
Registration materials must be mailed to:[1]
Professional Licensing Boards and Securities Division
237 Coliseum Drive
Macon, GA 31217
Renewal
Registration is valid for two years. It must be renewed by the expiration date of that initial registration. If contributions were received over that period, organizations must provide IRS Form 990 for the preceding two years. Organizations must use the state form to renew and cannot use the Unified Registration Statement (URS) to renew. The renewal fee is $20.[1]
Financial reporting
If an organization received more than $500,000 in either of its previous two years, it must provide a financial report according to the following specifications: if it received over $1 million it must provide a financial statement of a Certified Public Accountant (CPA); if over $500,000 the organization must provide a completed financial statement prepared by a CPA, but in this case the statement does not need to be certified.[1]
Extensions
A written request for an extension may be sent, and must include the $20 renewal fee and an explanation about why a statement is unavailable at the moment and when it is likely to be completed.[1]
Fee
There is no fee in addition to the renewal fee.[1]
Additional requirements
All groups in Georgia 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 "Georgia + 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. Cite error: Invalid
<ref>tag; name "NOLO" defined multiple times with different content - ↑ "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
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