AN ACT TO INCREASE THE QUALIFYING INCOME THRESHOLD FOR EXEMPTION FROM CHARITABLE SOLICITATION REQUIREMENTS, TO MODIFY THE DEADLINES FOR LICENSURE RENEWAL FOR CHARITABLE ORGANIZATIONS, AND TO REMOVE THE REQUIREMENT THAT APPLICATIONS FOR LICENSURE AND CERTAIN FINANCIAL REPORTS BE NOTARIZED.
Revises individuals and entities exempt from the provisions governing the solicitation of contributions by charitable organizations in GS Chapter 131F, as set forth in GS 131F-3. Now exempts any person who receives less than $50,000 (was, $25,000) in contributions in any calendar year who does not provide compensation to any officer, trustee, organizer, incorporator, fund-raiser, or solicitor. Adds that compensation to any organizer or incorporator does not include professional fees paid to licensed attorneys or licensed accountants. Identifies five ways a charitable organization can demonstrate to the Department of the Secretary of State (Department) that it receives less than $50,000 in contributions, including providing a copy of its most recently completed and filed IRS Form 990 or Form 990-EZ, a copy of its budget for the current year approved by its governing board with projected revenue and projected expenses, or a completed financial form developed by the Department.
Amends GS 131F-5 regarding charitable organization licensure renewal. No longer specifies that an extension for license renewal and annual filing of update information cannot exceed three months after the initial renewed date or eight months after the conclusion of the year for which financial information is due at the time of renewal. Specifies that federal filing date means federal informational tax form filing date. Deems a license renewal application filed as of the date shown on the postmark affixed, or, if filed electronically, when it is sent, as provided in GS 66-325. Now requires a charitable organization or sponsor whose federal informational tax form filing date has been extended pursuant to filing the federal application for automatic extension, to, within seven days after filing the application for automatic renewal, notify the Department that the license renewal period is extended by forwarding a copy of the application to the Department (previously provided for forwarding the document granting the extension within seven days of receipt). Now allows the Department to extend the time for license renewal and annual filing of updated information for a period of up to 60 days beyond (1) the 15th day of the fifth calendar month after the close of each fiscal year in which the charitable organization or sponsor solicited in the State or (2) the date of any applicable extension of the federal information tax form filing date, during which time the previous license remains in effect (was, not exceeding 60 days). Adds authority for the Department to extend the time for a charitable organization or sponsor whose federal informational tax form filing date has been extended pursuant tp filing the federal application for automatic extension for an additional period not to exceed 60 days. Effective October 1, 2021.
Amends licensure requirements for charitable organizations and sponsors in GS 131F-6, fund-raising consultants in GS 131F-15, and solicitors in GS 131F-16 to no longer require applications to be signed under oath; maintains signature requirement. Additionally no longer requires the financial report for solicitation campaigns required under GS 131F-16 to be signed certified under oath; maintain certification requirement.
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